With sales plunging in 2024, Metro Manila’s residential market has turned into a buyer’s market, as developers sweeten their offerings by adding value to units and extending easier payment terms.
"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," said Leechiu Property Consultants Director of Research and Consultancy, Roy Golez.
He noted that "despite strong demand drivers, residential sales levels in Metro Manila have slowed. As of the first 11 months of 2024, sales take-up dropped 63 percent compared to full-year 2023, while new project launches are approximately half of last year’s volume.”
“This tempered market environment presents a strategic opportunity for buyers, as developers adjust marketing tactics and enhance inventory offerings with value-added features,” he added.
Despite resilient demand drivers, residential condominium sales in Metro Manila for the first 11 months of 2024 account for only 63 percent of 2023 levels.
The Bangko Sentral ng Pilipinas (BSP) also reported a decline in the number of residential real estate loans (RRELs) granted nationwide as of the second quarter of 2024.
While new condominium launches increased quarter-on-quarter in the fourth quarter of 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.
Meanwhile, Golez said there are minimal changes in rental rates and asking prices in prime areas like Bonifacio Global City (BGC) and Makati, resulting in stable rental yields, with no significant quarter-on-quarter movement.
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.
Non-performing residential real estate loans (RRELs) have decreased after peaking during the pandemic. This improvement reflects the effectiveness of stricter buyer screening processes implemented by financial institutions.
“The current market slowdown, coupled with declining interest rates, presents a unique buying window. Developers are re-strategizing by enhancing unit offerings through value-adding features such as improved payment terms, rent-to-own schemes, and exclusive memberships,” said Golez.
He added that “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.”