Philippine Property Market: Housing Loans Climb as Condo Glut and Rent Fears Persist

This week's roundup looks at two sides of the Philippine housing market: encouraging growth in government-backed home financing, and renewed debate over whether Metro Manila's condo and rental segments are headed for trouble.

Stronger partnerships seen as key in bridging gap between home prices, Filipino incomes

Pag-IBIG Fund posted solid growth in home financing during the first half of 2026, releasing roughly P69.19 billion in housing loans for over 43,000 units — up 15% in value and 9% in units compared to the same period last year. Yet this expansion in financing access contrasts with a lingering supply glut: Colliers counted around 79,200 unsold Metro Manila condo units at the end of 2025, nearly 30,000 of them ready for occupancy, and projects vacancy could hit 25.6% by the close of 2026. Colliers also noted that economic and affordable condo segments are now the main drivers of demand, underscoring how affordability and access to financing are shaping the market's recovery path. According to Philstar.com, stronger partnerships between lenders, developers and government agencies are seen as essential to closing the gap between home prices and Filipino incomes.

Landlords warned vs panic rent cuts

Amid growing chatter that Metro Manila's condo rental market could be facing a steep downturn, Anthony Leuterio — national president of the A Better Real Estate Philippines (Abrep) Movement and founder of Filipino Homes and Rent.ph — is cautioning property owners against hastily slashing rents out of fear. He argues that reacting impulsively to gloomy forecasts could do more harm than the market conditions themselves warrant, pushing back on narratives of an imminent leasing-market crash. According to BusinessMirror, industry voices are urging landlords to stay measured rather than follow panic-driven pricing decisions.