As demand for residential properties slows, homebuyers may now find themselves in a more favorable market as developers are offering improved property features, lower prices and more flexible payment terms to attract potential buyers.
In recent months, the Philippine real estate market has cooled, with fewer buyers actively seeking new homes amid high-inflation and high-interest rate environment.
Developers re-strategize
Leechiu Property Consultants (LPC) said in a recent market developers are re-strategizing by enhancing unit offerings through value-adding features such as improved payment terms, rent-to-own schemes and exclusive memberships.
LPC said buyers can also 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.
With fewer buyers in the market, there is also less competition for properties, allowing potential homeowners to negotiate better prices and terms.
Developers are also offering more flexible terms, such as smaller down payments and extended payment periods. These adjustments make it easier for homebuyers to manage their finances and reduce the immediate burden of large upfront costs.
“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,” LPC director Roy Golez said.
High inventory
Developers are expected to continue offering more attractive deals in the coming months as they work to reduce inventory.
According to Colliers Philippines Metro Manila’s remaining inventory as of the third quarter of 2024 stands at 75,300 units, with an estimated absorption period of 5.8 years, much longer than the pre-pandemic period when it took just 1-2 years.
The inventory includes 27,200 ready for occupancy units valued at P 154.4 billion ($ 2.8 billion). Majority of these units are priced between P3.6 million and P 12 million, catering to the middle income market.
Key areas like Pasig, Quezon City South, Parañaque, and Manila North have a high concentration of unsold units.
Lower sales and launches
LPC also reported that residential condominium sales in Metro Manila in the first 11 months of 2024 accounted for only 63 percent versus sales for the full year of 2023.
While new condominium launches increased quarter-on-quarter in Q4 2024, total launches for the first 11 months of the year represent only half of 2023’s project count, indicating developers’ cautious approach amid the slower sales environment.
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.
For many home buyers the current real estate slowdown is turning out to be a rare chance to purchase a property with better terms and added value, offering a welcome break from the high prices and tight competition seen in recent years.
