Condo Price Cuts and Incentives in Manila

Philippine condo developers are aggressively slashing prices and offering incentives to clear ready-for-occupancy (RFO) units in Metro Manila, facing high vacancy rates. These promotions, including discounts of up to 50%, waived value-added tax (VAT), and rent-to-own options, are aimed at reviving a sluggish market. Developers are also sweetening the deals with gift certificates worth up to ₱150,000 and fully furnished, move-in-ready units.

These strategies appear to be effective, with reduced cancellations and increased take-up rates. However, the sector still faces challenges. The secondary residential condo market in Metro Manila has a concerning vacancy rate of 25%, which is projected to rise to 25.8% by the end of the year due to new project completions.

The impact varies across different districts. While areas like Makati CBD, BGC, and Ortigas Center show resilience, the Bay Area struggles, with half of its units remaining vacant. Despite the challenges, Colliers Philippines is cautiously optimistic, predicting a decline in residential vacancy by 2026 as developers slow down project completions.

This market presents opportunities for Filipino homebuyers, particularly Overseas Filipino Workers (OFWs) and young professionals. With low interest rates, flexible financing options, and aggressive marketing, the current environment favors buyers looking for deals on condos in areas like BGC and the Bay Area.