Metro Manila has too many unsold condos, but buyers still want them

Metro Manila is struggling with a glut of unsold condominiums, but buyers haven't lost their appetite for city living. The challenge for developers is making those homes affordable enough to sell.

A new survey by property consultancy Colliers Philippines found that 31 percent of respondents favor condominiums in major business districts as their next residential investment, matching the 31 percent who prefer house-and-lot properties in North or South Luzon.

The findings suggest that demand hasn't disappeared, even as developers struggle to clear thousands of completed units, particularly those aimed at middle-income buyers.

“[W]hile many still value the space and suburban lifestyle offered by house-and-lot properties, an equal share continues to see the appeal of condominium projects for their accessibility and proximity to business districts,” Colliers Philippines said in its latest survey report, dated Oct. 14, 2026. 

Joey Bondoc 

Colliers Philippines director for research

The price of winning buyers

Rather than freebies, buyers want breathing room on payments, with 61 percent of survey respondents favoring longer and more flexible payment terms, compared with 18 percent who preferred no immediate downpayment.

Developers have responded with discounts, extended payment schedules and rent-to-own offers, although Colliers warned that buyers backing out of purchases in the P3.6-million to P12-million segments began increasing again in the first half of 2026.

Too many condos, not enough buyers

• Metro Manila continues to struggle with a large supply of completed but unsold condominiums.
• Lower mid-income units priced from P3.6 million to P6.99 million account for 44 percent of unsold inventory.
• More affordable units priced from P2.5 million to P3.59 million make up another 28 percent.
• Colliers counted 9,260 unsold completed units priced between P3.601 million and P5 million alone as of the second quarter of 2026.

More room outside Manila

House-and-lot developments remain a strong alternative, particularly in established residential markets such as Cavite, Laguna and Batangas, where Colliers reported that 90 percent or more of cumulative inventory had been sold as of the second quarter.

Cavite led with 96 percent sold, followed by Laguna at 91 percent and Batangas at 90 percent, highlighting the appeal of suburban communities even as Metro Manila developers contend with unsold units.

Green homes gain ground

Price is not the only consideration, with 69 percent of respondents saying environmentally sustainable features are either essential or an important factor in deciding whether to buy a home.

Another 31 percent considered green features desirable but not mandatory, while none dismissed them as unimportant.

Beyond condominiums and house-and-lot developments, the survey found that 24 percent preferred provincial lots as their next residential investment, while 14 percent favored beachfront properties.

—Edited by Miguel R. Camus