Despite the withdrawal of Philippine Offshore Gaming Operators (POGO), the condominium market in Metro Manila has experienced a short-term oversupply. However, industry insiders believe that this trend is only temporary, and the market is expected to recover through investments in emerging industries and infrastructure development.
At the Pandesal Forum held in Caloocan City, Colliers Philippines revealed that the total value of unsold housing units in Metro Manila is projected to increase from 89.6 billion pesos in 2023 to 158 billion pesos in 2024, and it might take over 8 years to absorb these inventories.
However, Joey Bondoc, head of research at the company, stated that the condominium market still has growth potential as developers are slowing down the pace of new projects, and the government is actively attracting investments in emerging industries such as artificial intelligence.
He noted that although POGO has largely withdrawn, AI software engineering companies are flooding into the Philippines, occupying a large amount of office space, and could potentially become a new source of demand for the residential market. Additionally, the focus of real estate investment is gradually shifting to provinces outside the capital, with strong demand for leisure residential projects in places like Baguio, Cebu, Davao, and Iloilo, with some development projects nearing sell-out.
In terms of infrastructure development, projects in areas like Camiguin, Bukidnon, Pangasinan, and Eastern Samar are being accelerated, with house prices expected to significantly increase in the coming years, possibly doubling or tripling.
Industry experts suggest that now is a good time for homebuyers and developers to negotiate payment terms. The chairman of the Brazil-Magis Real Estate Board (PMRB) pointed out that some condominium projects have reduced prices or are offering more attractive payment schemes, such as extending the down payment period to 48 months, compared to 24 months before the pandemic.
Moby, co-founder of the ASEAN Real Estate Network Alliance, also mentioned that the recovery of the tourism industry provides opportunities for the real estate market. Unsold condominium units can be converted into short-term rentals to meet the accommodation needs of tourists, further promoting market recovery.
