The condominium market in the Philippines, especially for units priced between P2.5 million and P12 million, has seen a remarkable surge in pre-selling activity during the first nine months of 2025. Colliers Philippines data shows a 122% jump in year-on-year take-up, with these affordable and mid-income segments accounting for a huge 94% of the demand. We’re talking roughly 9,000 net units sold and about 11,000 new units launched, which is a solid 42% increase from the year before. It’s pretty interesting to see this kind of growth, especially considering some of the challenges the market has faced.
The Mid-Income Market’s Comeback
It’s particularly noteworthy that the mid-income condo market, which had a bit of a rough patch lately, is now showing signs of a strong rebound. You might remember it struggled a bit with the departure of POGO companies and, of course, those tougher mortgage rates. Joey Roi Bondoc, Colliers’ Research Director, pointed this out as a really positive development during their Q3 2025 Philippine Property Market Briefing. It’s often the mid-range that struggles first when times get tough, so seeing it bounce back is a good indicator for the whole industry.
What’s Fueling This Growth?
A big part of the story here is how developers are really pushing Ready For Occupancy (RFO) units with some pretty aggressive promotions. Things like rent-to-own schemes, super flexible payment plans, hefty discounts, and even bundled packages with freebies like gadgets and appliances are on the table. Honestly, you’d be surprised how much these incentives help. They’ve really cut down on buyers backing out of deals and have been a major help in breathing new life into the residential property scene across Metro Manila. It shows developers are really working hard to move inventory.
Making Condo Ownership More Attainable
The strong performance we’re seeing in the affordable to mid-income condo bracket really means that owning a condo is becoming more accessible to a lot more Filipinos. This is fantastic news, especially for our overseas workers and local employees who are looking for a place to call their own. Bondoc specifically mentioned that condos in the P2.5 million to P7 million range are particularly popular with these groups. It’s that sweet spot where people can realistically save up or qualify for financing.
Affordable Condos: A Long-Standing Pillar
Looking back a bit, the affordable price range has always been the backbone of Metro Manila’s condominium supply. Between 2016 and 2024, a massive 80% of all completed condo units were in this affordable bracket. This just goes to show how crucial and consistently in-demand this segment has been for years. It’s not a new trend, but its current strength is definitely something to watch.
A Slowdown in New Completions
Now, here’s an interesting point: even though sales are booming, there’s a noticeable drop in the number of new condo units being completed. This suggests that developers are actually pulling back a bit on their supply side. The projections for new unit completions from 2026 to 2028 are down to an average of about 3,600 units per year. That’s a huge 87% reduction compared to the more than 13,000 units that were completed annually between 2017 and 2019. It’s a classic supply and demand play, and it will be fascinating to see how this impacts prices down the line.
Expected Vacancy Rates
Looking ahead to late 2025, the overall vacancy rate for condos is expected to be around 26.5%. The Bay Area, in particular, is going to account for a big chunk of the new unit completions by the end of the year – about 71%. However, this area might also see a pretty high vacancy rate, potentially around 58.6%. This is largely due to the sheer number of units that were launched and built before and during the pandemic, which are still trying to find their renters or buyers.
Strong Sales in Areas Just Outside the Core
On the flip side, areas along the C5 corridor and other “fringe” markets, like Katipunan Avenue in Quezon City, are absolutely raking it in with robust sales. These locations are really hitting the mark with buyers. The C5 corridor, which stretches through parts of Pasig and Quezon City near C5 Libis and south of Ortigas Avenue, has seen a lot of its projects nearing full occupancy. It seems like people are looking for that balance of accessibility and slightly more reasonable pricing.
Why the C5 Corridor is So Popular
Developers are clearly finding a lot of success in the C5 corridor. Many projects there are already around 90% sold out. You can look at places like Parklinks Towers, The Lattice, The Grove, Eastwood Global Plaza, and The Velaris Residences – they’re practically all gone. What’s also interesting is that the price per square meter in this area is hovering around P300,000. While that sounds like a lot, it’s actually quite a bit lower than what you’d find in super-prime areas like Makati or Fort Bonifacio. It makes it a more achievable dream for many.
Katipunan Avenue’s Growing Appeal
Katipunan Avenue is another fringe area that’s really gaining momentum. Here, projects like Arton Residences, Blue Residences, Camella Condo Homes, and Hawthorne Heights are also almost completely sold out. There’s a new development, Arthaland’s Liv North, which is expected to be completed in 2031, and it still has about 80% of its units available. Condos in this part of the city tend to be more budget-friendly, with prices generally ranging from P100,000 to P150,000 per square meter. This makes them incredibly competitive within the broader Metro Manila market.
Those Ready for Occupancy (RFO) Promotions Are Key
Developers are really leaning into RFO promotions as a strategic move to draw buyers in. We’re seeing things like rent-to-own options, payment terms that stretch out much longer, substantial discounts, special bundled deals, and even those tempting free gadgets and appliances. As Bondoc mentioned, these kinds of initiatives have been absolutely critical in stopping buyers from pulling out of their purchase commitments and have really given a much-needed boost to sales across Metro Manila’s residential sector. It’s smart business, really, adapting to what buyers need right now.
Integrated Townships Outside the Big City
Moving beyond Metro Manila, developers are increasingly focusing on building large-scale, master-planned townships. These aren’t just housing developments; they’re designed to be self-sufficient communities, often integrating important institutional facilities like universities and hospitals. Just looking at General Trias in Cavite, Federal Land Communities’ Riverpark will be home to the Ateneo de Manila University, which is slated to open its doors in 2030. Similarly, Villar City is planning for a UP Technology and Innovation Campus. Ayala’s Vermosa in Cavite will include the De La Salle University (DLSU) Santiago Zobel School, and in Laguna, Nuvali already hosts schools like Miriam College, Everest Academy, and Xavier School. It’s a trend towards creating entire ecosystems.
Education Hubs in Regional Developments
This idea of creating integrated communities with educational institutions isn’t just limited to areas close to the capital either. It’s spreading to provinces further afield. You’ll find Miriam College planned for Alviera in Pampanga. Phinma’s Saludad in Bacolod will host Southwestern University. There are plans for DLSU Manila within the Davao Global Township, and Xavier University is set to be part of Manresa Town in Cagayan de Oro. It really signals a broader strategy to build comprehensive living and learning environments that offer everything residents need.
A Focus on Well-being and Green Living
These master-planned communities are also putting a significant emphasis on wellness, sustainability, and, importantly, plenty of open spaces. Megaworld’s Arden Botanical Estates in Cavite, for instance, boasts beautiful tree-lined roads, flower farms, and gardens. Its Maple Grove Park is even incorporating a rainwater park and catchment basin to help manage potential flooding. Arthaland’s Sevina Park in Laguna is aiming to offer solar-powered homes, which is fantastic for the environment. And up in northern Cebu, Cebu Landmasters Inc.’s Pristina Town offers residents attractive amenities like pocket gardens, zen gardens, and sky gardens. It’s about creating a lifestyle, not just a house.
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Shift Towards Horizontal Projects and Suburban Living
Looking ahead to 2026, we’re expecting a noticeable shift towards more horizontal projects, especially outside of Metro Manila. This is being driven by a really strong demand for lot-only units as more people are looking to move to suburban areas for more space and a potentially different pace of life. However, it’s not just outside the NCR; developers are also launching horizontal projects within Metro Manila itself. Megaworld’s Luxe, a 6.7-hectare project in New Manila, and SMDC’s Signature Series, which is expanding across various provinces and Metro Manila cities like Muntinlupa, Makati, Pasay, Parañaque, Taguig, Pasig, Cavite, Batangas, Palawan, and Cebu, are great examples of this continuing trend.
What’s Next for the Mid-Income Segment?
For 2026-27, it’s anticipated that we’ll see a further decline in vacancy rates in the secondary market. The mid-income segment, in particular, is expected to keep up its strong performance. The rent-to-own and other RFO promotions will likely continue to evolve, but their long-term sustainability is definitely a challenge developers will need to keep an eye on. Bondoc stressed that developers will need to keep being creative and innovative with these offerings if they want to keep the market buzzing and keep buyers engaged. It’s a dynamic situation, for sure.
Frequently Asked Questions (FAQ)
What condominium price segments are currently performing best in the pre-selling market?
Condominiums in the affordable to mid-income segments, priced from P2.5 million to P12 million per unit, are dominating the pre-selling market.
What is driving the strong demand in these segments?
Aggressive Ready For Occupancy (RFO) promotions from developers, including rent-to-own schemes, extended payment terms, discounts, bundled offers, and freebies, are significantly driving demand.
How much has pre-selling take-up increased year-on-year?
Pre-selling take-up has increased by 122% year-on-year in the first nine months of 2025.
What is the “sweet spot” for condo prices among Filipino buyers?
Condos priced between P2.5 million to P7 million are proving to be the “sweet spot,” especially appealing to overseas Filipinos and local employees.
Are there fewer new condo units being completed by developers?
Yes, there’s a reported decline in new unit completion, with average annual completions estimated at 3,600 units from 2026 to 2028, an 87% drop from previous years.
Which areas are seeing strong sales performance outside of traditional prime locations?
The C5 corridor and fringe markets like Katipunan Avenue in Quezon City are experiencing strong sales.
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What kind of features are master-planned communities outside Metro Manila incorporating?
Developers are integrating institutional facilities (universities, hospitals) and prioritizing wellness, sustainability, and open spaces within their townships.
Is there a shift towards horizontal projects in the market?
Yes, there’s an expected shift towards launching more horizontal projects, especially outside Metro Manila, due to strong demand for lot-only units.
What challenges do developers face regarding RFO promotions?
The primary challenge for developers is ensuring the sustainability and continued evolution of these RFO promotions to remain competitive and effective.
References
Colliers Philippines
The Manila Times
Business Inquirer
Thinking about making a move into property? With all the buzz around the affordable and mid-income condo market right now, especially with those amazing RFO deals and growth in areas like the C5 corridor and Katipunan, it might be the perfect time to explore your options. Developers are really putting out some fantastic offers, and it looks like there’s a lot of potential for great living spaces and smart investments. Why not have a chat with a real estate professional today to see what’s out there and how you can snag a piece of the action?
