The Philippines recorded its lowest number of condominium launches and take-ups in 2024 as developers prioritized selling existing units before rolling out new projects, according to real estate consultancy Colliers.
Only 11,000 new condominium units were launched last year, a steep 59% drop from the 25,000 units introduced in 2023.
Sales activity also plummeted, with just 9,000 units sold—down significantly from the 23,000 units taken up the previous year. Colliers described these figures as the “lowest number of launches and take-ups on record.”
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With 26,300 ready-for-occupancy (RFO) units still available, the slowdown comes as no surprise.
To attract buyers, developers are offering steeper discounts and more flexible payment terms. Before the pandemic, cash buyers could expect only a 5% to 10% discount. By 2023, discounts ranged from 15% to 30%.
Down payment requirements have also eased—from a minimum of 10% before move-in to just 5% in some cases, with certain developers even waiving the requirement entirely.
Payment terms have also been extended. While down payments were typically spread over 18 to 24 months, some developers now allow up to 48 months. To further entice buyers, incentives such as free air conditioning units and kitchen appliances have been added.
These aggressive promotions, however, are mostly limited to the affordable and lower mid-income segments, which account for nearly 60% of unsold RFO units. Affordable units are priced between P2.5 million and P3.59 million, while lower mid-income units range from P3.6 million to P6.99 million. Upper mid-income units (P7 million to P11.99 million) make up 25% of the remaining inventory.
Meanwhile, luxury (P20 million and above) and upscale units (P12 million to P19.99 million) have significantly lower inventory, making discounts unnecessary. Luxury RFO units account for just 2% of available units, while upscale units make up 3%.
Source: Bilyonaryo Business News
