Philippine Property Market: Condo Cancellations and Another BSP Rate Hike
Transparency calls grow over condo backouts as borrowing costs climb further
Written by PropVela Editorial TeamPublished 1 min read
Today's roundup looks at two developments shaping buyer sentiment in the Philippine property market: growing scrutiny of condo cancellation figures and another interest rate hike from the central bank.
Rise in condo buyer cancellations prompts call for data transparency
Industry voices are pushing for clearer, more detailed reporting on condominium cancellations in Metro Manila, arguing that current figures lump together financing-related backouts with other causes of failed transactions. Anthony Leuterio of the Association of Real Estate Brokers of the Philippines raised doubts over whether the often-cited figure of roughly 9,000 cancellations in the first nine months of 2026 truly reflects how many buyers are struggling with financing. Separately, Colliers data pegged unsold ready-for-occupancy units priced between P3.6 million and P5 million in Metro Manila at around 9,260 as of the second quarter, adding context to the oversupply conversation. According to BusinessMirror, better segmentation of cancellation data could help the industry pinpoint the real drivers behind buyer dropouts.
BSP hikes interest rates by 50 basis points
The Bangko Sentral ng Pilipinas lifted its key policy rate by 50 basis points to 5.50% on October 22, its largest single hike since February 2023. This brings total increases to 125 basis points since the tightening cycle began in April, pushing up the cost of mortgages and other real estate financing. BPI economist Emilio Neri Jr. suggested the BSP could tighten further in December, meaning borrowing costs for homebuyers and developers may keep climbing in the near term. According to Philstar.com, the rate decision adds pressure on affordability just as the market grapples with rising cancellations.