Office: Average asking rents in Metro Manila closed at PHP 1,041 per sq.m. per month by end-Q1 2023, a growth of 0.27% q-o-q from the recorded average asking rents of PHP 1,038 / sq.m. / month from Q4 2022. Albeit a growth in the previous quarter, this figure remains as a 0.4% contraction (y-o-y) from the monthly rate of PHP 1,045 / sq.m. / month reported in end-Q1 2022, suggesting that the overall office market is still in its recovery stage to pre- pandemic rates.
Investment: Estimated average office (gross) rental yields in Q1 2023 inched up by 65 bps from its Q4 2022 level to settle at 6.90%. Year-on-year (YoY), the rental yields increased by about 70 bps from its level in Q1 2022. C&W Research estimates rental yields to further inch up in the short-term, in anticipation of further adjustments in the key policy rate hike within 2023.
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