Metro Manila condo sales rise as promos, state loans spur buying

MANILA — Demand for residential condominiums in Metro Manila improved in the third quarter as aggressive developer discounts and government housing initiatives helped buyers bypass affordability hurdles and trim record inventory, an industry research firm said on Wednesday.

Leechiu Property Consultants said take-up rose 17 percent quarter-on-quarter to 8,454 units between July and September, up from 7,255 units in the second quarter. 

The increased activity pushed unsold inventory down to 80,000 units across 639 primary buildings from a peak of 82,900 units, cutting the market’s months of supply from 34 to 28.

Developers remained cautious about introducing new supply, choosing instead to focus on moving completed and pre-selling stock. New project launches plunged 39 percent quarter-on-quarter to 1,574 units, with roughly 90 percent belonging to the upscale segment.

To move units, property firms extended generous promotions, offering cash discounts of up to 60 percent and downpayment periods extending up to 60 months for ready-for-occupancy properties. 

On the public sector side, government programs offered target buyers fixed 4.5 percent interest rates for three years, while the Pag-IBIG Fund expanded its maximum loan limit to 10 million pesos.

Despite the quarterly uptick, market conditions remain fragile due to flat rental yields, persistent inflation, and elevated capital values. Analysts cautioned against interpreting the inventory drawdown as a return to sustained growth.

“Developers and government programs are helping bridge affordability and financing gaps that have historically prevented some buyers from entering the market. While these efforts are supporting transactions and helping move inventory, we expect buyers to remain selective and focused on value, quality, financing flexibility, and capital preservation,” said said Sharon Joy Roset-Saclolo, Leechiu Associate Director and Head of Research.

“The challenge for the market is whether current demand levels can be sustained as economic and geopolitical uncertainties continue to influence purchasing decisions,” Saclolo continued.