The Philippine residential market showed signs of a moderate recovery in the first quarter of 2025 with a 14 percent increase in condominium demand, said Leechiu Property Consultants (LPC) Inc.
This growth was supported by favorable policy rate cuts and attractive developer promotions.
Cautious optimism
For the rest of the year, the outlook for the Philippine property market remains cautiously optimistic.
The residential market is expected to continue its recovery, although global capital market volatility may introduce short-term uncertainties. Developers are likely to remain focused on selling existing inventory, particularly in the mid-range and luxury segments, where competition is expected to intensify.
“We’ve seen a good start for the year for the residential market. But we need to move with caution for now due to very recent developments in the world capital markets. For developers, they will need to be more aggressive with their marketing: their promos, payment terms. For buyers, this will be a good time to research and take a deeper dive and look the developer offerings.
There might be a short window of opportunity to acquire property at favorable terms while supply is not yet at comfortable levels,” said Roy Golez, director of Research and Consultancy at LPC.
Key highlights for the residential market
Demand growth. Residential condominium demand in Metro Manila grew by 14 percent in Q1 2025, with a total of 6,508 units taken up. This uptick comes as key policy rate cuts over three consecutive quarters, and the anticipation of more, have helped ease buyer concerns and fuel property acquisitions.
Decline in new launches. New residential project launches saw a sharp drop of 77 percent, with only 1,347 units launched in Q1 2025 compared to 5,928 in the previous quarter. Developers are focusing on marketing existing inventory, particularly within the mid-range segment, before rolling out new projects.
Buyer sentiment and developer strategy. While developer promotions and competitive payment terms have spurred buyer interest, the recent volatility in global capital markets may temper this enthusiasm. Buyers are advised to conduct thorough research to capitalize on favorable terms while supply remains tight.
Luxury market outlook. The luxury residential segment experienced a 39 percent decline in sales this quarter.
However, this sector remains attractive for long-term investors, as several developers plan to launch new luxury projects in the coming years, making the market increasingly competitive.
Source: Inquirer.Net
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