Leechiu Property Consultants reported a double-digit decline in residential sales in Metro Manila as of November 2024 despite a strong underlying demand.
“As developers recalibrate their selling strategies, this might provide an opportunity for buyers waiting in the sidelines to enter the market and invest in residential properties,” said Roy Golez, director of research and consultancy at Leechiu.
Leechiu said that as of November 2024, sales take-up dropped 63 percent compared to the full year of 2023, while new project launches were about half of last year’s volume.
The tempered market presents a strategic opportunity for buyers, as developers adjust marketing tactics and enhance inventory offerings with value-added features, it said.
While demand drivers remain resilient, residential condominium sales in Metro Manila in the first 11 months of 2024 accounted for only 63 percent of full-year 2023 levels.
The Bangko Sentral ng Pilipinas also reported a decline in residential real estate loans granted nationwide as of the second quarter of 2024.
Although new condominium launches increased quarter-on-quarter in the fourth quarter of 2024, total launches in 11 months represented only half of the full-year 2023 project count, indicating developers’ cautious approach amid the slower sales environment.
Minimal changes in rental rates and asking prices in prime areas like Bonifacio Global City and Makati resulted in stable rental yields, with no significant quarter-on-quarter movement.
Quezon City recorded the highest residential condominium take-up across all market segments, followed by Pasig and Manila. Historically, Quezon City has maintained the largest inventory, with Ortigas Center (Pasig) ranking second and Manila fourth.
Nonperforming residential real estate loans decreased after peaking during the pandemic. This improvement reflects the effectiveness of stricter buyer screening processes implemented by financial institutions, it said.
The current market slowdown, coupled with declining interest rates, presents a unique buying window. Developers are re-strategizing by enhancing unit offerings through value-adding features such as improved payment terms, rent-to-own schemes, and exclusive memberships.
Buyers can explore a range of projects across Metro Manila and nearby provinces while locking in attractive financing terms. By incorporating features like fully furnished units, wellness-centric designs, and additional discounts, developers aim to enhance residential property value, making them more appealing to potential buyers and setting the stage for market recovery, Leechiu said.
