Property Market Watch: Developers Pull Back Spending as Unsold Housing Piles Up
Builders redirect capital and chase affordable projects as glut persists
Written by PropVela Editorial TeamPublished 1 min read
Today's roundup looks at how a persistent housing glut is reshaping spending decisions among Philippine property developers.
Property developers cut capex as housing glut weighs on sales
S&P Global Ratings says Philippine developers are reining in capital expenditure and redirecting funds toward income-generating assets as elevated unsold housing stock, higher borrowing costs and softer purchasing power keep pressuring residential sales. The decline in property sales eased somewhat, falling 7% year-on-year in the first half versus an 11% drop for all of 2025, yet ready-for-occupancy units remain plentiful. Developers are increasingly turning to more affordable housing projects outside Metro Manila, where supply and demand are better matched, though S&P cautions that rising rates and weaker incomes could still dampen demand in these mid-market and affordable segments over the coming year. According to The Philippine Star, the shift reflects a broader recalibration across the industry's capital strategy.