Colliers sees opportunities in real estate despite market hurdles

The Philippine real estate sector experienced headwinds in 2024, with property values in Metro Manila’s key business districts declining and an increase in condominium inventory. However, industry experts point to bright spots that could drive market recovery, including economic growth, easing interest rates, and developer incentives.

At the Colliers Philippines Q4 Property Briefing, Research Director Joey Roi Bondoc noted that while the oversupply of ready-for-occupancy (RFO) condominium units has grown to 8.2 years of inventory from 3.2 years in 2023, there are factors that could support a market rebound.

One positive trend is the continued demand for upscale and luxury properties, which make up a small but resilient segment of the market. These high-end units continue to enjoy brisk sales despite broader challenges, highlighting investor confidence in premium real estate.

Additionally, developers are actively adjusting their strategies to attract buyers. Many are offering attractive promotions such as low down payments, extended payment terms, and added perks like free appliances and internet services. Bondoc emphasized that such incentives, combined with improving macroeconomic conditions, could stimulate demand in the coming months.

Another factor expected to boost the property sector is the country’s infrastructure push, with ongoing and planned projects improving connectivity and accessibility. The upcoming mid-term elections and the steady flow of overseas Filipino remittances are also anticipated to drive property investments.

Furthermore, with interest rates expected to decline, borrowing costs may become more manageable for homebuyers, making property purchases more attractive.

While the property sector is still navigating challenges such as elevated mortgage rates and an oversupply of units in select areas, industry leaders remain optimistic about long-term growth. Developers are expected to continue adapting to shifting market conditions, positioning the sector for a gradual recovery.