Colliers PH sees condo rebound, cancellations drop 25% as big discounts lure buyers

As it turns out, there’s demand for condos in Manila. Developers just had to sweeten the deal a little more.

New data from Colliers Philippines is clear: discounts and other promotions are making a dent in the still-significant oversupply situation, as developers begin to revisit even long-protected pre-selling rates.

“I’ve never seen pre-selling with discounts of 15–25 percent. Even in 1997, they did not do that,” Richard Raymundo, Colliers Philippines managing director, said during their mid-year briefing on Wednesday.

For a long time, pre-selling prices were shielded from deep cuts, as builders argued they were backed by long-term value, steady property appreciation, and rising building material costs.

Buyers with cash on hand—as always—can seize rich opportunities.

“So it’s an interesting time in the market that if you have the funds for end-use, and a unit that you really like to live in, go for it,” Raymundo said.

Richard Raymundo
Colliers Philippines managing director 

Big picture

Builders are turning to larger discounts on units still under construction to keep sales moving, as Colliers Philippines estimates Metro Manila’s condo surplus will take 10 years to clear at the current pace of sales.

These adjustments are coming after hikes in the years leading up to the Philippine Offshore Gaming Operators (POGOs) ban, which suddenly left the market with a significant amount of excess supply.

Despite the discounts, pre-selling units still command a roughly 50-percent premium compared to secondary market condos, partly due to higher construction costs and inflation.

Q2 sales boost show strategy is working

Colliers Philippines pointed to encouraging signs in second-quarter 2025 data, with sharply lower buyer cancellations and rising take-up in the hard-hit middle-income segments.

“We are seeing back-outs have gone down and what’s more important is the take-up is significant higher this [second] quarter,” Raymundo said.

Their data shows back-outs fell 25 percent to 3,600 units in the second quarter, compared to 4,800 cancellations in the first quarter.

Raymundo said net take-up surged to over 3,000 condos in the second quarter, versus less than 100 units in the first quarter. 

Nearly 70 percent of these came from the mid-market segment, where prices range from P3.2 million to P12 million. 

Joey Bondoc 
Colliers Philippines director for research

Signs of reversal

Joey Bondoc, Colliers Philippines director for research, said top builders are offering ready-for-occupancy (RFO) incentives as high as 50 percent discounts, rent-to-own options, no down payments, and spreads of up to 10 years on payments.

Some even offer fully furnished units, tax-free deals, and gift certificates worth up to P150,000 to lure buyers.

“It shows how aggressive promos are working,” Raymundo said.

Robust deals outside Metro Manila

Bondoc said the condo and house-and-lot market is showing healthy sales outside Metro Manila.

He said areas such as Bacolod, Cebu, and Pampanga are seeing significant price appreciation thanks to projects by Megaworld Corp., Robinsons Land, and Rockwell Land.

“From 2025 up to 2028, Metro Cebu will see the completion of 33,000 new condominium units. That is even bigger than the 17,000 units that will be completed in key business districts in Metro Manila during that same period,” Bondoc said.

How about buying secondary market condos?

There’s no doubt there are great deals to be had, with secondary market prices still around half the cost of new units.

Raymundo said older but well-maintained units in Makati could be purchased for around P250,000–300,000 per square meter—a steal when compared to newer projects.

“For you to get those good deals, you need the liquidity, pay in cash,” he said.

He said some sellers avoid bank loans because it can take three to six months to process, during which they give up ownership without getting paid yet.

“So this is why the RFOs are working, because you don’t need that full amount of cash. With just 10 percent, you can move in. And that’s what we’re seeing with the data, is the RFO promos are really working right now,” Raymundo said.

About the author
Miguel R. Camus
Miguel R. Camus

Miguel R. Camus has been a reporter covering various domestic business topics since 2009.

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