RESIDENTIAL condominium sales in Metro Manila rose 17% in the third quarter as steep developer discounts and government housing programs helped buyers cope with affordability and financing constraints, reducing the market’s record unsold inventory, according to Leechiu Property Consultants.
The research firm said take-up reached 8,454 units from July to September, up from 7,255 units in the second quarter.
The improvement brought unsold inventory down to 80,000 units across 639 primary buildings from a peak of 82,900 units. The market’s months of supply also declined to 28 from 34.
Developers, however, remained cautious about launching new projects, focusing instead on selling completed and pre-selling units. New project launches fell 39% quarter-on-quarter to 1,574 units, with upscale developments accounting for about 90% of the total.
To attract buyers, property firms offered cash discounts of up to 60% and downpayment periods of as long as 60 months for ready-for-occupancy units.
Government initiatives also supported demand, with housing programs offering eligible buyers fixed interest rates of 4.5% for three years. The Pag-IBIG Fund likewise raised its maximum housing loan limit to ₱10 million.
Despite the quarterly recovery, Leechiu cautioned that the market remains vulnerable to flat rental yields, persistent inflation, and high property values. The decline in unsold inventory does not necessarily signal a sustained market recovery, it said.
“Developers and government programs are helping bridge affordability and financing gaps that have historically prevented some buyers from entering the market,” said Sharon Joy Roset-Saclolo, Leechiu associate director and head of research.
While the measures are supporting transactions and helping move inventory, buyers are expected to remain selective, prioritizing value, quality, flexible financing and capital preservation, she said.
“The challenge for the market is whether current demand levels can be sustained as economic and geopolitical uncertainties continue to influence purchasing decisions,” Saclolo added.
