Philippine Property Market: Developers Sweeten Terms as Condo Inventory Piles Up
Flexible financing takes center stage as mortgage rates and unsold units squeeze residential demand
Written by PropVela Editorial TeamPublished 1 min read
The residential segment remains under pressure this week, with developers adjusting deal terms rather than sticker prices to keep buyers interested amid a growing glut of unsold condo units.
Philippine condo developers bend terms, not prices
Rather than discounting condominium prices outright, developers are reportedly leaning on longer payment schedules and financing perks to keep sales moving, as elevated borrowing costs and a swelling stock of unsold units dampen demand. Mortgage rates sitting around 7.7% to 7.8% are pushing would-be buyers to postpone purchases or hunt for friendlier financing arrangements. Adding to the caution, the Iran war has unsettled sentiment among remittance-dependent households, with overseas Filipino worker inflows growing just 1.9% year on year to $3.24 billion in July — a trend expected to stay soft through year-end. According to BusinessWorld, consultants say these headwinds are reshaping how developers structure deals rather than how they price units.
Lower mid-income condos account for 44% of unsold inventory — Colliers
Colliers Philippines reports that lower mid-income condo units made up 44% of Metro Manila's unsold ready-for-occupancy stock as of the second quarter of 2026, underscoring where the market's oversupply is concentrated. Units priced between P3.6 million and P7 million represented the biggest chunk of that unsold RFO inventory, with the P3.6-million to P5-million bracket alone totaling 9,260 unsold units. Developers continue to roll out flexible payment schemes in an effort to clear this backlog. According to BusinessWorld, the data highlights where buyer demand and available supply are most out of sync.