AFTER several quarters of sluggish performance, the residential market is finding its footing once again on the back of improving vacancy rates for secondary market, fewer back-outs, strong demand for upscale and luxury condominiums and increase in launches.
All these positive signs are happening alongside with improving overall macroeconomic conditions.
“The Philippines is one of the fastest-growing economies in Southeast Asia,” said Joey Bondoc, Head of Research at Colliers Philippines. “We saw some gloomy weather over the past few days, but there’s nothing gloomy about the Philippine economy.”
With GDP growing 5.4 percent in the first quarter and remittances reaching nearly $3 billion per month, Colliers sees a stable economic foundation supporting renewed activity in the property sector.
Residential launches slowing—but take-up is stabilizing
While new residential launches in Metro Manila have significantly declined, take-up performance is showing signs of life, especially in higher-end segments.
From 2017 to 2019, the market was absorbing around 54,000 pre-selling condominium units annually due to strong demand from Philippine Online Gaming Operators. But between 2022 and 2024, that figure dropped significantly to just 18,000 units per year.
Despite the slowdown, positive net take-up is now being recorded, particularly in the mid-income (P3.2 million to P12 million), luxury (P20 million+), and ultra-luxury (P100 million+) segments.
“We are recording positive take-up, meaning the take-up of these condos is greater than the back-outs,” Bondoc said.
According to Bondoc, the number of back-outs fell by 25 percent quarter-on-quarter from 4,800 units in Q1 to 3,600 units in Q2 2025. This signals that more buyers are committing and fewer are backing out.
High-end projects
As the condominium market continues to face oversupply problem, particularly to the affordable to mid-market segments, proper developers are becoming more strategic by focusing on the segments with the strongest performance.
Bondoc noted that high-end projects such Ayala Land Premier, Alveo Land, Robinsons Land Corp. in central business districts in Metro Manila are all performing exceptionally well.
Other developers like SM Prime, Megaworld, and Rockwell Land are also doubling down on luxury, with strong take-up not just in Metro Manila, but in Cebu, Davao, Bacolod, and Cagayan de Oro.
“It’s pretty understandable why developers are launching the ultra-luxury—more than ₱100 million per unit,” Bondoc said. “Only 10% of unsold inventory falls into that category, yet it’s what’s performing best.”
Flexible promos
Helping drive the recent momentum are promos currently being offers by developers such as rent-to-own, 120-month payment terms, and deep spot cash discounts.
“These promos are working,” Bondoc emphasized. “The extended down payment terms are effective. Developers should continue implementing this innovative, creative promo.”
Growth outside Metro Manila also remains strong
Take-up in cities like Cebu, Davao, and Iloilo remains robust, with average take-up rates between 84 percent to 91 percent for vertical developments.
In the house-and-lot and lot-only market, provinces like Bulacan, Cavite, Batangas and Laguna show consistently high absorption rates.
