Philippine residential market shows recovery—Colliers

The Philippine residential market starts to show recovery after a slow period, led by several positive trends, according to Colliers Philippines.

The property consultancy firm said these include improved vacancy rates for existing properties, fewer buyers pulling out of deals, strong demand for luxury condominiums, and an increase in new project launches. These positive signs are supported by a healthy overall economy in the Philippines, one of the fastest-growing in Southeast Asia, with solid GDP growth and high remittances.

Market trends

While the number of new residential launches in Metro Manila has decreased significantly since the pre-pandemic boom (fueled by Philippine Online Gaming Operators), the market is seeing stabilizing buyer interest, especially in higher-priced segments.

Positive Take-Up

Colliers reports "positive net take-up," meaning more units are being sold than canceled, particularly in the mid-income (P3.2 million to P12 million), luxury (P20 million ), and ultra-luxury (P100 million ) segments.

Fewer back-outs

The number of buyers canceling their purchases dropped by 25% from Q1 to Q2 2025, indicating stronger buyer commitment.

Given the oversupply in the affordable to mid-market condominium segments, developers are strategically focusing on the high-end market, where demand is strongest. Major developers like Ayala Land Premier, Alveo Land, and Robinsons Land Corp. are seeing excellent performance in their luxury projects within Metro Manila's central business districts. Other developers such as SM Prime, Megaworld, and Rockwell Land are also experiencing strong sales in luxury properties not just in Metro Manila but also in other key cities like Cebu, Davao, Bacolod, and Cagayan de Oro. This focus on ultra-luxury units is understandable, as they represent only 10% of unsold inventory but are performing the best.

Flexible promotions

Developers are effectively using flexible promotions to attract buyers. These include "rent-to-own" schemes, extended payment terms (up to 120 months), and significant spot cash discounts. These innovative payment options are proving successful in driving sales and commitment from buyers.

Outside Metro Manila

The residential market is also showing robust growth in areas outside Metro Manila. Cities such as Cebu, Davao, and Iloilo are experiencing strong take-up rates for condominium developments. For house-and-lot and lot-only properties, provinces like Bulacan, Cavite, Batangas, and Laguna consistently show high absorption rates, indicating strong demand in these provincial markets.