Shorter inventory life points to improving condo appetite
The unsold condominium inventory life in Metro Manila has substantially improved in Q4 2025 after reaching a record high of more than 13 years.
Significant take-up of pre-selling Metro Manila condominium units (ready for occupancy and under construction) in mid-2025 proved that developers’ promos were effective. Colliers Philippines believes that the sustainability of these attractive terms and promos for RFO units will be a challenge in the near term.
Colliers likewise projects continued launch of massive township projects outside Metro Manila even beyond 2026. Within the capital region, we see more property firms exploring the feasibility of lot-only developments.
Overall, we expect firms to ramp up diversification strategies to capture demand from an investing public that has now learned to diversify in light of compressing yields in Metro Manila.
The capital region’s residential market will continue to be more attractive to end-users. Hence, we see property firms catering to the mid-income segment to look for emerging peripheral business locations that remain ideal for mid-income or niche markets.
Stable demand in major business hubs
Colliers recorded an 8 percent increase in pre-selling net take-up year-on-year (YOY), driven mainly by the mid-income segment.
Secondary market demand remains stable, especially in major central business districts (CBDs) including Makati, Rockwell Center, and Ortigas Center. Take-up in these hubs is partly driven by expats looking for units with large cuts.
C5 corridor and the Bay Area
About 7,400 new condominium units were completed in 2025, with Fort Bonifacio, Bay Area, and C5 Corridor accounting for about two-thirds of the new supply. By end 2026, the Bay Area will dominate condominium stock across Metro Manila.
Assessing viability of lot-only dev’ts
Colliers recommends that developers assess the viability of launching more lot-only projects.
In our view, lot-only projects are attractive given their large cuts; greener and more open spaces; and potential for price appreciation. Colliers data showed that lot-only developments in key regions like Southern and Central Luzon, Central Visayas, Western Visayas, and Davao regions recorded formidable price appreciation of between 5 percent and 13 percent annually from 2016 to 2025.
The strong preference for lot-only projects is starting to gain traction within Metro Manila.
Given the limited supply and rising demand, we expect prices of these lot-only units in the capital region to increase in the years to come. Interestingly, developers primarily focused on mid-income projects are now targeting the higher-priced residential segment with an emphasis on expansive horizontal communities.
For instance, SM Prime Holdings earlier launched its Signature Series, which will offer premium residential lots in key areas including Muntinlupa, Makati, Pasay, Parañaque, Taguig, Pasig, Cavite, Batangas, Palawan, and Cebu. The first project will be located in Susana Heights, Muntinlupa.
Opportune time to acquire condo units
As of end 2025, unsold condominium inventory in Metro Manila stood at 79,200 units—29,400 of which are RFO units.
Among the locations with high unsold RFO inventory include Quezon City, Manila, Bay Area, Pasig City, and Alabang-Las Piñas.
Colliers encourages buyers to be on the lookout for projects located in these areas as developers are likely to offer bigger discounts and more attractive payment terms due to slower demand and elevated vacancies for turned-over projects.
For residential end-users looking at acquiring RFO units, now is a very good time given the availability of nearly 30,000 units of unsold inventory strategically situated near major business hubs, and given the attractive RFO terms being extended by developers.
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