Metro Manila’s condominium market remains sluggish, with 75,300 units still unsold as of the third quarter of 2024, according to Colliers Philippines.
“It will take about 5.8 years to fully sell out all these unsold condominium units, nearly five times compared to the pre-pandemic period from 2017 to 2019 where remaining inventory life ranged between 9 months and 1.1 years,” said Colliers director and head of research Joey Roi Bondoc.
Data showed that of the remaining inventory, 27,200 units were ready-for-occupancy (RFO) valued at P154.4 billion. The majority, or 57 percent, fell within the lower to upper mid-income segments priced between P3.6 million and P12 million per unit.
Areas like Pasig, Quezon City–South, Parañaque, Manila North, Makati Fringe and Quezon City–North accounted for the highest RFO stock.
Developers launched only 8,000 preselling units in Metro Manila in the first three quarters of 2024, a 61-percent drop from the previous year’s. Sales were similarly weak, with just 9,300 units sold, representing a 53 percent year-on-year decline.
Colliers said the tepid demand drove developers to prioritize projects in growth areas outside Metro Manila including CALABARZON, Central Luzon, Central Visayas, Western Visayas, Northern Mindanao and the Davao Region.
From 2021 to 2023, condominium launches in these regions surged by 30 percent to 3,000 percent, with take-up rates increasing from 17 to 445 percent. Horizontal projects also grew significantly, with launches rising by 15 to 138 percent and take-up improving from 3 to 60 percent.
“These regions are among the most preferred by respondents for their next residential investment,” Bondoc said, citing strong remittance inflows from more than half of the 2.16 million overseas Filipino workers in 2023 who are from these areas.
Data from the Bangko Sentral ng Pilipinas highlighted the demand, with 66 percent of real estate loans in the second quarter of 2024 granted to borrowers in these regions.
To tap into this growing interest, developers are rolling out leisure-oriented projects in provinces like Cebu, Davao, Bohol, Palawan, Boracay, Cavite and Batangas, including both standalone residential developments and integrated communities with resort-style amenities.
Colliers said that as of the second quarter of 2024, prices for these leisure-themed properties ranged from P175,000 to P590,000 per square meter, with take-up rates between 43 percent and 100 percent.
