Anthony Leuterio, founder of Filipino Homes and Rent.ph, has challenged a forecast of further declines in Metro Manila condominium rents, arguing that landlords risk sacrificing income if they respond to oversupply with price cuts rather than better marketing, data-led pricing and professional property management.
His remarks push back against a warning by David Leechiu, co-founder and chief executive of Leechiu Property Consultants, that rents for studio units could fall to as little as P5,000 within the next 12 months, from about P30,000 previously, as excess supply intensifies competition among landlords.
‘I don’t agree with Leechiu,’ Leuterio said, arguing that rental performance depends not only on supply but also on location, tenant demand, economic conditions and how effectively properties are marketed and managed.
‘Rental is not just about pricing. It’s about marketing, demand, and professional management,’ he said.
The disagreement highlights a key issue for the Philippine property sector – whether landlords can protect recurring income through more effective leasing strategies or will increasingly be forced to lower rents to compete for tenants.
Leuterio, who is also the president of ‘A Better Real Estate’ ABREP, cautioned against extrapolating weakness in an oversupplied segment of Metro Manila’s condominium market to the wider rental sector.
Performance varies by location and property type, he said, while disappointing rental returns may reflect poor marketing, unrealistic pricing, inadequate tenant screening or weak management rather than a lack of demand alone.
Indiscriminate rent reductions may help fill vacancies, but they can also erode income if owners have not assessed competing properties, prevailing lease rates and alternative marketing strategies.
The issue extends to the incentives facing real estate agents, some of whom, Leuterio said, may prioritize securing a tenant to earn a commission over maximizing the landlord’s long-term returns.
Rental professionals should be judged not simply on their ability to close leases but on their capacity to sustain occupancy, protect rental income and preserve the value of property investments, he argued.
‘Instead of creating fear, we should encourage property owners to rely on actual market data and professional rental management. We should protect investors’ interests, not undermine their confidence,’ he said.
Leuterio called for rental rate studies, more reliable market data and professional managers across residential buildings to help owners establish competitive prices and make better-informed investment decisions.
He also pointed to population growth across Metro Manila and Luzon, alongside households unable to afford homeownership, as factors underpinning the need for rental housing.
However, the strength of that demand will depend on affordability, the location of available units and the extent to which rents match tenants’ budgets.
For investors, headline rental rates offer only a partial measure of returns. Occupancy, vacancy periods, operating expenses and management costs also determine how much income a property generates.
Oversupply can put downward pressure on rents, but the extent of any decline will depend on local inventory, competing developments and tenant demand. Actual lease transactions and vacancy rates are therefore essential to establishing whether price weakness is widespread or concentrated in particular market segments.
Leuterio said the industry should give leasing and asset management the same strategic attention as property sales, treating rental operations as a long-term business rather than a means of generating quick commissions.
The distinction matters for developers and investors seeking recurring income from residential assets. As competition for tenants intensifies, professional management and disciplined pricing could help owners navigate market pressures, although they cannot eliminate the effects of genuine oversupply or weak demand.
For Leuterio, the priority is not to predict that rents will invariably rise or fall, but to ensure that pricing decisions are grounded in market evidence and that properties are managed to achieve sustainable returns.