Market Overview Summary
Taguig City’s condominium market has experienced a combination of declining to stable pricing trends over the past 12 months. While there is significant oversupply in condominiums in Metro Manila, including Taguig, rental rates have seen a slight increase of around +0.5%, and vacancy rates are rising moderately. This imbalance is driven by a growing inventory of unsold units and new completions pushing the supply up, particularly in Metro Manila’s CBDs like Bonifacio Global City (BGC) in Taguig. Construction activity remains firm, supported by major infrastructure projects such as the Taguig Integrated Terminal Exchange and upcoming mixed-use estate developments by Robinsons Land Corp.
Despite market headwinds like oversupply risks and metro congestion, demand is supported by expatriates, working professionals in hybrid work setups, and investors targeting prime locations. Rental yields in Taguig’s high-end areas average around 5.12%, though oversupply has slightly lowered yields for larger units. The residential vacancy rate in Taguig is approximately between 6.9% to 7.2%, reflecting the rising inventory and slow absorption.
Key Insights
- Condo Oversupply Risks: Metro Manila’s overall condominium oversupply is high, with Taguig facing a 37-month inventory duration for unsold condos, slightly easing from 38 months earlier in the year.
- Rental Market: Despite oversupply, rental rates in Taguig exhibit modest growth (+0.5%), supported by expatriates and local executives on hybrid work arrangements.
- Vacancy Trends: The residential vacancy rate in Taguig has increased to approximately 7.2% due to new completions and more units available for lease.
- Demand Drivers: Demand fueled by BPO workers, expatriates, OFWs, infrastructure improvements (e.g., the Taguig City Integrated Terminal Exchange, Metro Manila Subway proximity), and investor activity in mixed-use developments.
- Supply Pipeline: New major developments such as Robinsons Land’s 22-hectare destination estate and ongoing ready-for-occupancy promotions enhance supply but heighten inventory pressure.
- Risks: Oversupply in condominium stock poses a threat to rental yields and sales absorption; metro congestion may impact attractiveness; regulatory and lending rate changes remain uncertainties.
- Opportunities: Infrastructure investments and synergies with commercial hubs promote long-term growth; upscale and integrated living spaces continue to draw premium buyers and tenants.
Implications for Investors and Developers
Investors and developers considering Taguig City’s residential subdivisions should adopt a cautious stance due to the current condominium oversupply and rising vacancy rates, which pressure rental yields and absorption rates. Prioritizing integrated developments with mixed-use components near infrastructure projects will likely yield better resilience and returns. Strategic focus on mid- to high-end segments in BGC and other premium enclaves can capitalize on demand from expatriates and affluent locals. Long-term prospects remain positive given ongoing infrastructure improvements; however, monitoring market absorption carefully and adjusting project timelines to avoid exacerbating oversupply is essential.
Developers would benefit from targeted marketing to foreign and local executives and exploring innovative layouts fitting the hybrid work lifestyle, while investors should analyze rental income potential net of taxes and expenses. Diversification into adjacent growth cities like Ortigas or Makati could also hedge risks related to localized oversupply.
Sources & Citations
- Cushman & Wakefield Philippines Market Report Q2 2025
- Global Property Guide, Philippines Real Estate Price History (2025) globalpropertyguide
- HousingInteractive Market Analysis Bonifacio Global City Q1 2025 housinginteractive
- Leechiu Property Consultants Oversupply Report Metro Manila Q1 2025 gmanetwork
- JLL Residential Vacancy and Rental Report Q1 2025 realestateasia
- Philstar News on Taguig Developments (Taguig Integrated Terminal Exchange, Robinsons Estate) philstar
- BambooRoutes and Colliers Rental Yield and Pricing Studies (2025 Estimates) bambooroutes
- Travalour. (n.d.). Travalour – Discover & explore destinations. Travalour. https://www.travalour.com/
- Metropolitan Manila Development Authority. (n.d.). SWMIS – Local Government Unit: Manila. MMDA. https://swmis.mmda.gov.ph/lgu/manila
- Tripadvisor. (n.d.). Tripadvisor official site. Tripadvisor. https://www.tripadvisor.com/
- Traveloka. (n.d.). Traveloka Philippines: Flights, hotels & travel deals. Traveloka. https://www.traveloka.com/en-ph
