Developers are finally confronting the property market’s toughest challenge head-on, with more aggressive discounts and extended payment terms helping ease the oversupply that is still estimated at about eight years’ worth of units.
“It’s really acceptance. And I think this is why the market is now really improving. It’s because the developers have accepted what needs to be done,” Raymundo said during their quarterly briefing on Wednesday.
The next challenge is sustaining momentum
Aggressive promos and extended payment terms have bolstered sales in the traditionally weak third quarter.
“So we’re now seeing the effect for two quarters and you’re now seeing that really big increase in the third quarter, which is normally slow because it’s the ghost month. And we saw that 5,000 units of net in just one quarter. So it’s working,” Raymundo said.
“So as long as the developers are still in that acceptance that hey, we need to sustain our marketing and promotion, I think it’s going to be good because it’s accepting that you just need to clear the inventory,” he added.
Offices are also bouncing back
Even the office leasing sector is gradually rebounding after the ban on Philippine Offshore Gaming Operators (POGOs) at the end of 2024.
Colliers data showed a net take-up of 119,000 square meters in the third quarter—the highest since the POGO ban.
This brings total net take-up for the first nine months to 215,000 square meters, with a year-end forecast of 285,000 square meters.
Metro Manila’s overall office vacancy rate remains elevated at 19.8 percent due to new supply, while the Makati central business district continues to outperform with an 8.2 percent vacancy rate, followed by Ortigas Center at 10.8 percent and Fort Bonifacio at 12.4 percent.
Quezon City’s vacancy rate stood at 23.8 percent, Mandaluyong at 22.6 percent, Alabang at 34.5 percent, the Makati Fringe at 42.8 percent, and the Manila Bay Area at 43 percent.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
