What the condo oversupply scare isn’t telling you
There’s been growing chatter about a looming oversupply of condominiums in Metro Manila. For many casual observers, this sounds like a red flag. But for seasoned investors and real estate professionals, this is where discernment pays off.
Localized phenomenon
Oversupply, when viewed in isolation, can sound alarming. But in reality, what we are experiencing is a localized phenomenon—a surplus in select submarkets and concepts mostly concentrated in high-density areas of Metro Manila where developers simultaneously launched projects pre-pandemic.
It does not reflect the overall condition of the national property market, which remains fundamentally strong.
The broader truth? Real estate in the Philippines is still very resilient and it has been so for many years despite the many crises we have experienced under different administrations.
Our young and growing population, robust remittances from overseas Filipino workers (OFWs), consistent growth of business process outsourcing (BPO) industry, the rise of digital nomads, and rise in domestic tourism continue to drive housing demand.
Rising interest, demand
Areas outside the traditional central business districts (CBDs)—like the growth corridors connected by new infrastructure—are experiencing a surge in interest, particularly for leisure properties and short term rental assets.
Even in Metro Manila (CBDs like Makati, Bonifacio Global City, and especially Entertainment City in the Bay Area), the tourist-oriented projects that were conceptualized and designed as short term rentals are still enjoying higher rental rates due to the strong demand.
Strategic time
What the oversupply scare isn’t telling you is that now is a strategic time to buy. With more inventory comes more choices, better deals, and opportunities to acquire undervalued properties in locations with high potential for capital appreciation and passive income.
Instead of fear, this is a time for informed optimism. Smart investors aren’t backing out—they’re stepping in. They’re taking advantage of softened prices, diversifying their portfolios, and positioning themselves ahead of the next demand wave.
In every market cycle, opportunities exist for those who see the big picture. And in Philippine real estate, the future still looks bright—especially for those who choose to invest with wisdom and vision.
The author is the chair and co-founder of Havitas Developments Corp.
