According to its third-quarter Property Market Briefing, Colliers Philippines reported positive indicators for the residential market in Metro Manila. “The third quarter is traditionally a slow market, particularly for condominiums, but the sector performed well for the first nine months of 2025,” said Colliers Philippines Research Director Joey Bondoc.

To boost the market, developers have been offering attractive terms, such as a 60 percent discount for spot cash payment, a 5 percent spot down payment, and the option to move in with a furnished unit, a 36-month rent-to-own promotion, and a complimentary parking slot with the condo unit.

In the ready-for-occupancy (RFO) segment, substantial improvements in financing terms include innovative payment terms from renter to owner. Some developers are offering lease-to-own terms and attractive down payment options to attract buyers.

For the first nine months of 2025, 94 percent of the total take-up is from the affordable to mid-income segments.

Bondoc underscored that, “The take-up for the pre-selling market has been sustained, and we're seeing greater net take-up. Leading the net take-up are the condominium units in the pre-selling market, whether this is under construction or ready for occupancy, in the mid-income segment.”

In the mid-income segment, there are more than 30,000 unsold RFO units in the national capital region. Pre-selling launches are up by 12 percent, while take-ups are up by 122 percent.

There is a 108 percent improvement in take-up in the third quarter of 2025, compared to last year’s second quarter. In the RFOs, there is a 26 percent drop in backouts in the third quarter of 2025 compared to the same period last year. Back-outs have been declining for two consecutive quarters, indicating a positive trend in the market.

Mid-income launches are making a comeback. In the third quarter of 2025, the completion of major projects brought 1,500 new condominium units.  Projects by Megaworld (Park McKinley West Tower 3, Uptown Arts Residence) and DM Wenceslao (MidPark Towers) led the completion.

A total of 5,700 units are scheduled to be turned over by the fourth quarter of 2025, with projects largely originating from the Bay Area, including Copeton Baysuites, Sail Residences, and Ice Tower. Other projects in line are Avida Towers and Ardane Tower 1 in Alabang and Park Central Towers North in Makati.

The Bay Area accounts for more than half of this year’s new supply, totaling 8,600 new turned-over units expected for the year.

Bondoc, however, noted a decline in the completion of new condominium units and a reduction in the number of units turned over annually. “From 2017 to 2019, an average of 13,000 units of condominiums were turned over every single year, but from 2026 to 2028, there’s a significant reduction of about 3,600 units. He added, “As for declining vacancy rates, we are not seeing a reprieve.”

The overall Metro Manila vacancy rate as of the third quarter is at 25 percent, and the projected vacancy rate by the end of the year is at 26.5 percent. The Bay Area has the highest vacancy rate at 58 percent.

“Residential vacancy’s improvement will start next year. The vacancy is expected to drop to about 25 percent in 2027, with the Bay Area's vacancy rate dropping to 57 percent in 2026 and 55 percent in 2027,” forecasted Bondoc.

He also discussed shift and development opportunities outside major business districts, particularly the C5 corridor and Katipunan area. Projects in the C5 corridor, such as The Grove (100 percent sold), Eastwood Global Plaza (96 percent sold), and The Velaris Residences (92 percent sold), are performing well.

“The Katipunan area is also attracting major developers due to its relatively cheaper condominium units. Both Berkeley Residences and Vista Pointe are 100 percent sold,” Bondoc reported.