The residential market is seen to get a big boost from the recent increase in Pag-IBIG Fund’s housing loan ceiling to ₱10 million even as the segment has been resilient in the first half of the year amid the higher interest rates and construction costs caused by the Iran war.

In a media briefing, Leechiu Property Consultant Director for Research and Consultancy Roy Golez said sales strong because of the government’s 4PH program as well as the higher Pag-IBIG funding provides financing support for the buyers.

The increase in the Pag-IBIG ceiling from ₱6 million to ₱10 million opens it up for the bulk of home buyers. He said residential take-up is still dominated by the ₱4 million to ₱7 million segment as well as the ₱7 million to ₱12 million units.

“The segments from ₱4 million to ₱12 million is where a majority of the units in the market are,especially for the RFO (ready-for-occupancy) units in the market,” he noted.

LPC Director for Investment Sales Tam Angel said “This matters because, as borrowing rates are increasing everywhere else, Pag-IBIG offers a cheaper option to borrow money. Now that they raise a ceiling rate to ₱10 million, that affordability now reaches mid-market prices that were out of Pag-IBIG's previous range. And that kind of opens the doors to homes where wealth gets built and solve the problem of the unsold condo units.”

Golez said “Demand is intact despite inflation, despite supposedly increasing interest rates, despite geopolitical uncertainty, some affordability concerns.”

He explained that, this is mainly of strong end-user demand based on data showing that ready-for-occupancy unit sales now account for 72 percent of sales in the second quarter of 2026 from 52 percent in the first quarter.

While property developers have reduced new project launches to focus on RFO sales to the end-user market, Golez said inventories actually rose to 82,900 units in the second quarter from 81,000 units in the first quarter as there are still some developers who brought in new inventories.

He explained that, “While the demand remains, additional supply plus the amount of cancellations have not been strong enough to materially impact the total supply numbers…thus, we're seeing developers still maintaining a cautious stance in terms of launches for residential condos.”

Golez said first half sales actually went up by six percent but first half of new launches was up by 18 percent. Thus inventories have reached its highest level since 2016 but noted that, given current demand, “it's only at 34 months supply.”