By Beatriz Marie D. Cruz, Reporter
METRO MANILA’s condominium glut is prompting developers to adapt amid shifting buyer preferences and evolving market trends, according to experts.
The oversupply of mid-income units is leading developers to recalibrate pipelines, introduce sustainability features, expand services, and explore alternative uses for unsold inventory, while urban planners see opportunities for adaptive reuse and mixed-use projects.
Claro dG. Cordero, Jr., director and head of research, consulting, and advisory services at Cushman & Wakefield, said today’s urban development trends suggest that Metro Manila’s oversupply of mid-end residential units has far-reaching implications for the region’s future.
“With market uncertainties and evolving buyer expectations, developers must move beyond traditional practices and adopt innovative strategies that will not only enhance project quality but also build buyer confidence and resilience,” he said.
Likewise, mid-income developers are now expected to shift their strategies from a broad-market perspective to a more location- and lifestyle-specific approach, said Anjo L. Sumait, head of residential services at property consultancy firm Santos Knight Frank.
According to property consultancy firm Colliers Philippines, pre-selling condominium launches between 2022 and 2024 plunged by 58% compared with the property boom of 2017–2019.
As of the second quarter, about 30,500 ready-for-occupancy units remain unsold, Colliers noted. About 32% of these come from the lower middle-income segment, which are valued at P3.6 million to P6.99 million.
“In Metro Manila, it’s difficult to determine right now when developers will start launching aggressively,” Colliers Philippines Director and Head of Research Joey Roi H. Bondoc said.
“Developers are tweaking their strategies. They are recalibrating and launching less, but when they launch less, they’re more prudent.”
News of the oversupply could be traced back to the property boom in the mid-2010s, fueled by rapid urbanization, strong demand from Philippine Offshore Gaming Operators (POGOs), and the growing business process outsourcing sector.
However, this momentum was cut short in 2020 as the coronavirus pandemic normalized work-from-home arrangements.
POGOs, which drew significant take-up in the middle-income segment, were banned by the government last year. Following this “exodus” was an influx of vacant, ready-for-occupancy units, especially in the Bay Area.
DMCI Project Developers, Inc. (DMCI Homes), one of the country’s leading mid-segment developers, said the condo glut has prompted the firm to be “more rigorous in planning future launches within Metro Manila.”
“We recognize that today’s dynamic real estate landscape requires greater agility and precision,” DMCI Homes Vice-President for Marketing Jan O. Venturanza said.
“While these present near-term challenges, we view them as a natural market correction that pushes developers to be more strategic, selective, and innovation-driven.”
DMCI Homes has also been more responsive to changes in sales take-up, buyer behavior, and market sentiment, Mr. Venturanza said.
“Any adjustments to our launch calendar are therefore not a pullback, but a strategic effort to ensure product relevance, enhance customer value, and safeguard long-term viability,” he added.
“Rather than slowing growth, this approach allows us to innovate our pipeline, optimize existing developments, and strengthen customer engagement — positioning us for renewed momentum and sustainable success in the year ahead.”
STRATEGIESTo spur demand for existing inventory, developers must reposition older or underperforming properties through upgrades or alternative use cases, Mr. Cordero said.
“Converting vacant properties into co-living spaces, smart rental units, or even flexible commercial hubs offers adaptive reuse strategies that breathe new life into stagnant investments,” he noted.
Buyers are now looking for more value-packed offerings that integrate with different lifestyles, Mr. Cordero added.
“Developers should assess unit sizes and integrate multi-functional layouts that cater to changing lifestyles like work-from-home setups or family-friendly spaces,” he said.
Furthermore, offering essential yet unique amenities tailored to mid-income buyers, like coworking lounges or eco-friendly fitness spaces, can elevate the value of a development, he added.
Sustainability features have also served as an attractive price point for buyers, as energy-efficient systems, sustainable materials, and green spaces help make projects cost-efficient, Mr. Cordero said.
Sourcing raw materials locally could also mitigate supply chain disruptions, control unexpected price hikes, and enhance development timelines and turnover, he added.
“There’s also a growing demand among end-users and young professionals who value functional design, flexible payment terms, and the potential for long-term appreciation, an area we’ve seen traction in through our recent transactions,” Mr. Sumait added.
Homebuyers also seek more transparency in project progress, material sourcing, and financial options through digital platforms, Mr. Cordero said.
Roy Amado L. Golez, Jr., director for research and consultancy at Leechiu Property Consultants (LPC), said Metro Manila’s condo crisis has shaped the developer-buyer relationship into a more interactive and involved type.
“I think what’s happening now is the developer is not just a seller, and the buyer is not just a plain buyer,” he said.
According to Mr. Golez, buyers can now seek developers’ assistance in leasing, designing, and furnishing their units, while some developers offer laundry and cleaning services.
For instance, DMCI Homes has provided services like commercial-grade fiber connectivity, carpool programs, electric vehicle charging stations, and water recycling systems, Mr. Venturanza said.
The mid-income developer also seeks to attract homebuyers through well-planned layouts, lush open spaces, and resort-inspired amenities.
“We remain committed to delivering innovative, value-driven solutions that respond to the evolving needs of the mid-income market,” he noted.
Homeownership in the Philippines also remains unattainable for many Filipinos, with condominium prices in Metro Manila 19.8 times the median annual household income, according to American nonprofit research and education group Urban Land Institute (ULI).
Latest data from the Bangko Sentral ng Pilipinas showed that condominium prices in Metro Manila rose by 14.2% in the first quarter, up from 6.6% in the same period last year.
“There is also a growing preference for leasing instead of ownership among younger buyers, so residential leasing could be a business model that developers should explore more,” Mr. Sumait noted.
For veteran architect Joel L. Luna, a review of the country’s zoning laws and building codes would also help provide more affordable housing and efficient pricing.
“The practice of assigning high floor area ratios (FAR) to enable higher land values should be regulated. FAR was conceived as a mechanism to manage the level of development within an area to ensure that the systems that service such development (roads, open spaces, utilities) will not be overwhelmed and will be equitably enjoyed,” said Mr. Luna, who serves as the founder and principal of Joel Luna Planning and Design.
“Private developers, however, have used this as a means to charge higher prices,” he added.
He also cited the need to review and update building codes to provide options for innovative and affordable materials, like timber construction, which could lower the cost of condominium units.
To further reduce the cost of living and ownership in condominiums, developers should also incorporate more waste management as well as energy and water conservation systems, he added.
MARKET OPPORTUNITIESMarket shifts in the mid-income segment are a strategic opportunity to enhance the positioning of unoccupied units, according to DMCI Homes’ Mr. Venturanza.
He cited the increased demand for transport-oriented developments due to the sustained return-to-office trend, as well as the rollout of key transport infrastructure projects.
External sources of demand include remittances from overseas Filipino workers, and renewed interest from foreign retirees and long-stay expatriates, Mr. Venturanza said.
“In response, we are recalibrating our sales and marketing strategies to align with these evolving demand drivers — emphasizing strategic location, financing flexibility, and community integration. These efforts are expected to support stronger absorption of existing inventory and reinforce our value proposition in the mid-income segment,” he noted.
Mr. Sumait added that the rise of young, first-time buyers as well as newly independent households serve as potential buyers for unsold condominiums.
According to Mr. Cordero, unsold inventory may be repositioned as suitable for hybrid work arrangements.
“Repositioning and marketing unoccupied mid-income condos as ideal residences for hybrid workers can unlock untapped value — by marketing these as furnished units with functional spaces that double as home offices to create immediate differentiation,” he said.
Lastly, building mixed-use developments, which incorporate retail and office spaces, schools, parks, and transit connections, have seen growing traction among homebuyers, Mr. Luna said.
“A masterplanned development gives a sense of predictability that enables buyers to be at ease knowing that their investment is sound and may even appreciate in value over time.”
“By adopting a long-term vision, developers can ensure projects remain relevant and resilient through fluctuating market cycles, better absorbing shocks caused by oversupply,” Mr. Cordero said.
