CEBU CITY – An organization of real estate brokers disputed recent reports highlighting an alleged oversupply of condominiums in the Philippines.
CHRIS Malazarte (second from left), national president of the Accredited Real Estate Salespersons of the Philippines Inc., has questioned recent reports that there is an oversupply of condominiums in the Philippines. (File photo by Calvin Cordova)
The Accredited Real Estate Salespersons of the Philippines Inc. said that reports of oversupply of condominiums that were overprojected to take two to three years to sell are baseless.
Acres national president Chris Malazarte said these observations fail to present an objective picture as they do not delve into key factors influencing unsold inventories.
“The assessment oversimplifies the situation,” Malazarte stated. “Factors such as location, price points, developer reputation, target market preferences, amenities, and marketing efforts all influence sales. We cannot say that something is not right when we did not account what went wrong."
Malazarte said that unsold units in some areas do not reflect the overall health of the industry. While some projects may experience slower sales due to mismatched pricing or less favorable locations, many others have seen rapid sellouts, demonstrating strong demand for quality developments that meet market needs.
“Developers are continually launching new projects because their existing inventories are running low,” Malazarte said. “This trend alone contradicts claims of a widespread oversupply.”
The robust interest in new developments underscores the resilience of the Philippine real estate market and its ability to cater to various segments, from affordable housing to luxury condominiums.
Malazarte called on industry analysts to provide a more balanced perspective by recognizing the diversity of market dynamics.
“Real estate is not a one-size-fits-all industry. It’s important to examine the specifics of each development and understand the factors driving market trends. Blanket conclusions about oversupply only serve to mislead the public and erode confidence in a thriving sector,” he said.
The group encouraged stakeholders to focus on evidence-based evaluations of the real estate market. The organization remains optimistic about the industry’s potential, fueled by strong economic fundamentals, a growing middle class, and continued urbanization.