CEBU CITY – The country is faced with the significant challenge of a persistent mismatch between developer inventories and buyer demands.
LEUTERIO (FB)
One of the country’s top realtors, Anthony Leuterio, highlighted these critical gaps, pointing to an oversupply of real estate inventory, particularly in Metro Manila.
Shedding light on the issue, Leuterio, founder of Filipino Homes, said the problem is not the lack of buyers, but the products being developed do not align with what buyers actually need.
“The market is huge in real estate, but the unmet demands versus the inventory are not matched,” Leuterio said.
One major issue Leuterio identified within the industry is its reliance on flawed market studies. Developers often base their decisions on data analysis that is skewed toward their perspective, rather than considering the broader market.
“The problem in the whole country is that they are not looking at the marketing side –the unmet demands,” he explained. “The studies are focused on developers, not on the actual needs of the market.”
This approach has led to developers producing high-cost properties in locations that do not match the needs or purchasing power of buyers.
To solve the problem, Leuterio calls on developers to rethink their strategies by prioritizing market research and engaging marketing professionals, instead of relying solely on internal studies.
He added that developers should focus on understanding the financial capacity of buyers, rather than funding expensive projects that require high recovery costs.
The Philippine real estate market holds immense potential, but addressing the mismatch between developer offerings and buyer needs is crucial for sustainable growth. By prioritizing accurate market research and adapting to the unmet demands of buyers, developers can bridge the gap and unlock opportunities in this thriving sector.
Leuterio’s insights serve as a wake-up call for the industry to take a more customer-centric approach and ensure that real estate developments align with market realities.