Metro Manila condo oversupply offers opportunity for first-time buyers

A record oversupply of condominiums in Metro Manila is creating favorable conditions for first-time homebuyers, Philippine Savings Bank (PSBank) said.

About 26,300 ready-for-occupancy (RFO) units remained unsold at the end of 2024, according to PSBank's 2024 Metro Manila Residential Report. The rising vacancy rate, driven by aggressive property development, has contributed to the surplus.

Developers are offering competitive pricing, flexible payment terms, and incentives to attract buyers. Discounts of up to 30 percent are being offered to cash buyers.

Some developers are providing special discounts for specific groups, such as first-time buyers and overseas Filipino workers (OFWs), as well as exclusive perks like partner discounts or amenity upgrades. Flexible payment plans, extending down payment periods up to 48 months, are also available.

PSBank said the offers make condominium ownership more affordable, allowing buyers to build equity instead of paying rent. Properties in prime locations can reduce commute times and transportation costs. Real estate also offers potential for appreciation, providing future sales or rental income opportunities.

Prospective homebuyers can access flexible financing options. PSBank's Home Loan with Prime Rebate offers competitive interest rates, flexible repayment terms, and streamlined approval for those purchasing new condominium units from accredited developers.

The Prime Rebate feature allows buyers to earn rebates on advance or excess payments, reducing interest costs and accelerating loan repayment.

PSBank also offers discounted Real and Other Properties Acquired (ROPA).

"With an oversupply driving affordability, developer incentives increasing, and financing options readily available, this may be the ideal time for first-time buyers to enter the property market," PSBank said.

PSBank, a subsidiary of Metropolitan Bank and Trust Company, has been operating for more than 60 years.