Can BPO Workers Afford To Rent A Condo?

Wazzup Pilipinas!

With the country’s real estate sector continuously performing well in terms of capital appreciation and rental rate growth, it seems that many Filipinos employed in the business process outsourcing (BPO) industry are quickly becoming priced out of Metro Manila’s condo market.

An analysis conducted by Lamudi Philippines (www.lamudi.com.ph), using data from its 80,000-plus property listings and from real estate consulting firm Colliers International, found that even BPO employees at supervisory and managerial levels would be hard-pressed to afford to rent a condo, let alone buy, in most of Metro Manila’s townships or central business districts. This comes as a surprise, as most of these condos are situated close to BPO offices.

In the analysis, Lamudi used data on average salaries of BPO workers presented by Colliers International in a meeting hosted by SHDA. The data shows entry-level customer care representatives receive on average Php22,500 per month, while supervisors and managers receive Php32,500 and Php75,000 per month, respectively.

Using the 30 percent rule—that is, not spending more than 30 percent of one’s salary on housing—Lamudi found that only those working as managers in BPO firms may be able to afford a condo in select areas in Metro Manila. These areas include Eastwood City, Pioneer-EDSA, Poblacion (Makati), and San Antonio (Makati). The average rents of one-bedroom and studio condos in these areas range from Php19,838 to Php22,563.

Meanwhile, those condos situated in the Ayala Center, Rockwell Center, Ayala Triangle–Apartment Ridge, and Bonifacio Global City are the most out-of-reach for BPO employees. Lamudi data shows that employees must be making, on average per month, Php308,577, Php187,691, Php183,333, and Php155,217 in order to afford even the smallest condos in these areas.

According to Lamudi Philippines managing director Jacqueline van den Ende, the results of this analysis highlights the mismatch between the supply and how much BPO workers can afford.

“It is unfortunate that most of the inventory available now is beyond the means of BPO employees, who will benefit immensely from living close to their work places,” said van den Ende.

Given Metro Manila’s worsening traffic conditions, most BPO employees who live as far north as Bulacan and as far south as Cavite and Laguna will save plenty of time they spend every day on commute. A separate study by the Japan International Cooperation Agency (JICA) shows that traffic is costing the Philippine economy some Php2.4 billion every day on lost income.

Average condo rents and the monthly salary required to afford them, per area and per unit size

AREA/CONDO SIZE (No. of bedrooms)1	AVE. RENT	MONTHLY SALARY REQUIRED
Alabang, Muntinlupa2
1	22,852	76,172
2	62,500	208,333
Ayala Center, Makati
1	92,573	308,577
2	135,934	453,113
3	199,457	664,855
5	180,000	600,000
Ayala Triangle/Apartment Ridge, Makati
1	55,000	183,333
2	117,273	390,909
3	165,822	552,738
4	180,833	602,777
Bay City, Pasay
1	26,320	87,732
2	47,333	157,777
Bel-Air, Makati3
1	29,861	99,536
2	51,933	173,111
Bonifacio Global City, Taguig
1	46,565	155,217
2	88,338	294,459
3	160,653	535,510
4	185,000	616,666
Century City, Makati
1	34,142	113,805
2	78,621	262,070
3	150,000	500,000
Eastwood City, Quezon City
1	22,293	74,311
2	32,783	109,275
3	39,303	131,009
4	90,000	300,000
Ermita, Manila
1	27,215	90,715
2	48,125	160,416
Greenfield, Mandaluyong
1	23,129	77,096
2	37,382	124,606
3	61,000	203,333
Legaspi Village, Makati
1	38,902	129,673
2	77,778	259,258
3	137,474	458,245
4	220,000	733,333
Malate, Manila
1	30,568	101,892
2	48,145	160,484
3	88,000	293,333
4	123,000	410,000
McKinley Hill, Taguig
1	23,361	77,871
2	73,478	244,925
3	115,556	385,185
Newport City, Pasay
1	34,400	114,666
2	45,000	150,000
3	76,667	255,555
Ortigas Center, Mandaluyong–Pasig
1	30,805	102,682
2	66,591	221,971
3	97,918	326,392
4	213,333	711,111
Pio del Pilar, Makati4
1	24,300	81,000
2	49,286	164,285
Pioneer-EDSA, Mandaluyong
1	19,838	66,125
2	28,659	95,528
3	51,250	170,833
Poblacion, Makati5
1	21,250	70,833
2	64,400	214,666
3	120,000	400,000
Rockwell Center, Makati
1	56,308	187,691
2	110,764	369,213
3	156,986	523,287
4	340,000	1,133,333
Salcedo Village, Makati
1	37,703	125,676
2	80,139	267,129
3	109,409	364,696
4	142,237	474,121
San Antonio, Makati
1	22,563	75,211
2	41,778	139,259
3	85,000	283,333
Notes: 1. ‘1’ refers to both one-bedroom and studio units 2. Includes areas outside Filinvest City and Madrigal Business Park 3. Includes condos outside the Makati CBD along Gil Puyat Avenue, Malugay Street, and Jupiter Street 4. Includes condos along Chino Roces Avenue from Don Bosco Street to Gil Puyat Ave. 5. Includes condos along Makati Avenue but outside Rockwell Center and Century City

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