✅Market Challenges & Trends

• High RFO Inventory: Metro Manila has a condominium overhang, with unsold RFO units taking over 8 years to be absorbed.
• Interest Rate Impact: Potential rate cuts could lower mortgage costs and boost demand.
• Geographic Shift: Resort-themed and mid-income projects outside Metro Manila (Batangas, Benguet, Cebu, Davao) show strong performance.
• Infrastructure Influence: Proximity to major infrastructure projects (e.g., Metro Manila Subway) is expected to drive demand beyond 2025.

✅ Key Market Figures

• Condo Take-Up: 9,100 pre-selling units sold in 2024—historically low.
• Vacancy Rate: Reached an all-time high of 23.9%, expected to remain high in 2025 due to new supply and the POGO exit.
• Rents & Prices: Minimal rent growth (+0.5%) in 2024, with potential corrections in 2025 (-1% to -1.5%).

✅ Recommendations for Developers

1. Offer Strategic RFO Incentives: Discounts (up to 30%), rent-to-own schemes, extended down payments, and early move-in promos.
2. Explore Condotel Investments: Tap into growing demand for leisure-oriented developments outside Metro Manila.
3. Expand Geographically: Focus on high-demand suburban and provincial markets.
4. Leverage Infrastructure Growth: Align projects near upcoming major developments to increase attractiveness.

🔹 Outlook: The market faces short-term hurdles, but developers can capitalize on demand outside Metro Manila and infrastructure-driven opportunities for recovery beyond 2025.

Source: Colliers | Colliers Quarterly | Property Market Report – Office | Q4 2024 | Philippines