Understanding and maximizing shifts in Philippine property
The results of our recent poll showed signs of a property market recovering. Interestingly, developers are
adjusting well to shifts in the market caused by the pandemic.
Preferred expansion sites
Outside the Makati central business district, Fort Bonifacio remains as the most preferred site for office expansion and relocation.
The business hub was trailed by Ortigas Center and the Bay Area which, as of Q3 2025, recorded the highest vacancy across the capital region at 43 percent.
Quezon City was the least preferred among options at 13 percent. Among the five business hubs, Quezon City will deliver the largest new supply from 2026 to 2028 at about 44,000 sqm annually, followed by Bay Area (39,000 sqm) and Fort Bonifacio (33,000 sqm).
Reimagined use of office space
Our respondents prefer to work and collaborate in a smart work area. They also prioritize privacy and carving out of office space for group activities such as town hall meetings.
Colliers believes that office fit-out will play an important role in enticing employees to return to traditional office setup. In our view, Fort Bonifacio and Ortigas Center will continue to stand out as preferred office locations outside Makati CBD.
RFO promos stoking demand
At present, rent-to-own promos that provide free parking space to buyers are the most popular in Metro Manila. These are followed by ready-for-occupancy (RFO) units that provide 60 percent discount on total contract price for spot cash payments.
Given elevated mortgage rates, investors are also gravitating towards full in-house or no bank financing. This option allows buyers to make 120 monthly payments to the developer.
Colliers believes that these RFO promos are helping lift the demand for mid-income condominium projects in Metro Manila.
Ideal residential investment options
It appears that RFO promos being offered by developers are working with nearly a third of our respondents looking to acquire a condominium unit over the next 12 months. House-and-lot (H&L) units outside the capital region, however, were the more popular choice.
A tenth of our respondents are planning to acquire a lot-only unit within the National Capital Region (NCR) over the next 12 months.
Nearly 30 percent chose lot-only units outside NCR, and this is pretty understandable given that key regions like Central Luzon, Southern Luzon, Western Visayas, Central Visayas and Davao recorded an average price appreciation of between 8 percent and 18 percent from 2016 to 2024.
An opportune time
Colliers believes that the Metro Manila condominium segment will likely remain a buyer’s market for 2026.
In our view, developer launches will likely remain conservative and tempered in 2026, especially with unsold RFO inventory still at more than 30,000 units as of Q3 2025.
Colliers Philippines believes that Metro Manila’s mid-income condominium market is starting to recover.
We partly attribute this to the attractive discounts and payment terms extended by developers during the past three quarters. The hefty discounts offered for spot cash payments, extended payment terms, free appliances, and other RFO concessions are indeed luring more investors to buy vertical units.
