This topic is close to my heart because Airbnb has been my bread and butter since 2018. I had experienced a number of ups and downs ever since. In the age of digital nomads and remote work, condominium investors were the biggest winner, well at least before the pandemic. There are two names that stands out for those looking to enter the short-term rental game: SMDC and Megaworld. Of course there are others players too, but these 2 are the giants in this space. Both developers offer prime locations at competitive prices. Making ROI faster.
Gone are the days that Airbnb used to be just a side hustle—it is now a very competitive business. If fact many unit owners now prefer short term rental because of higher monthly income, more flexibility, ability to scale, and most important, maintaining the unit condition from wear and tear. But success depends heavily on three things: Location, amenities, and vicinity. SMDC is famous for placing their projects right beside SM malls, transport hubs, and business districts. 3 of my listings are:
- Shore Residences near MOA
- Air Residences near Makati CBD
- Mezza Residences near schools
The foot traffic in those area are insane! Especially on weekends and holidays.
Megaworld, in contrast, builds townships. Instead of being near malls—they build the mall, the BPO offices, and parks. 3 of my listings are in:
- Uptown Bonifacio (BGC)
- Newport city across NAIA terminal 3
- McKinley Hills (Taguig)
These are self-contained environments ideal for digital nomads, and tourists alike.
SMDC units are generally smaller with floor area between 25sqm to 35sqm. This keeps purchase prices low—great for faster ROI. But guests with families or those staying longer may feel cramped.
Megaworld units are a bit more spacious. Ranging between 28sqm to 50sqm, usually with balcony. This mean hosts can charge higher rates, longer average stays, and accommodates more guests.
Here’s the elephant in the room: Booking fees. Though not all condos are charging this (yet). For instance, one of my SMDC listing Mezza Residence, and two of my Megaworld listings Morgan and One Palmtree all don’t charge booking fees. For the rest, SMDC collects 20 pesos per booking regardless of number of guests. While Megaworld requires 7,000 pesos per annum as hosting registration. I recently paid 3,500 pesos in One Uptown Residence for a half year registration. So if you’re planning to buy a condo for the sole purpose of Airbnb, its best if you could visit Airbnb website and see if you can find a listing in that building, and of course always confirm with the PMO office about short-term rental policy.
Now let’s talk about the flex. In Metro Manila, SMDC dominates the listings, especially near Mall of Asia. This is their stronghold. But the tradeoff is you will have to compete with hundreds hosts.
While Megaworld listings are fewer but more premium. In places like BGC or Newport city, there are less saturation, guests stays longer, but highly reliant on events and season.
So if you choose to put your money in SMDC because you want lower capital, and faster ROI, you should be comfortable managing smaller units, and aim to host in high-demand, and high-turnover operation.
While if you choose Megaworld, you’ll have upper middle class guests, longer-stay bookings, less operation expenses, but your occupancy rate will be seasonal. You’d only peak during summer and Christmas season. Both are profitable. The difference lies in your hosting strategy.