Leechiu Property Consultants (LPC) said the condominium market in the country remains a buyer’s market going into 2025.
Roy Golez, LPC director for research and consultancy, said this is very likely given the 37 percent drop in sales for the year at 25,566 condominium units compared to last year’s 40,555 units.
Golez also said project launches for the year at 13,226 units are approximately half of last year’s 24,656 units.
“This tempered market environment presents a strategic opportunity for buyers, as developers adjust marketing tactics and enhance inventory offerings with value-added features,” he said.
“Despite resilient demand drivers, residential condominium sales in Metro Manila for the first 11 months of 2024 account for only 63 percent of FY2023 levels. The Bangko Sentral ng Pilipinas also reported a decline in the number of residential real estate loans granted nationwide as of the second quarter of 2024,” he added.
Golez said the reduced launches indicate developers’ cautious approach amid the slower sales.
Of the hubs in the Metro, Makati, Bonifacio Global City (BGC) and Taguig enjoyed a notable increase in capital values, between 2 and 16 percent, which indicates that developers have started concentrating on the highest levels of the market — high-end to luxury segments, Golez said.
“Whereas other locations have barely grown, also because launches in those areas are not in the luxury or a high-end market,” he said.
Rents remain flat with rent yield at about 3.4 to 3.7 percent for the high-end and luxury condominium market.
“For rents, certain areas are doing better. BGC and Taguig have been improving, especially that the (rents in these) area(s) are now up 27 percent pre-pandemic, or 2 percent versus last year. Other areas, especially Alabang, Ortigas and Bay Area are still significantly down double-digit percentages compared to pre-pandemic rents,” Golez said.
“These areas are the areas… that have been highly impacted by the POGO (Philippine offshore gaming operation) market. Basically, that’s Alabang, Muntinlupa, Bay Area, Pasay and Ortigas, Mandaluyong is specific, because there is so much supply in that location,” he added.
He said the current market slowdown, coupled with declining interest rates, presents a unique buying window, with developers re-strategizing by enhancing unit offerings through value-adding features, such as improved payment terms, rent-to-own schemes and exclusive memberships.
According to Golez, 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, he said.
“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,” Golez added.
For its part, property consultant Colliers said developers are likely to continue the shift to suburbia with lots-only and house-and-lot (H&L) projects outside of Metro Manila and in key areas outside the National Capital Region, with focus on leisure-oriented developments.
