In the Philippines, the housing deficit has reached 8.25 million units as of March 2025, up from 6.5 million in 2022. That number is projected to hit 10 million by 2028. Meanwhile, new housing supply is concentrated in high-end condominiums mostly outside Metro Manila, while affordable housing output lags at around 200,000 units annually. These two trends—growing demand and a mismatch in supply—are pushing policymakers and developers toward a different strategy: redeveloping the buildings and land already sitting inside cities.
Brownfield redevelopment—the reuse of previously developed, underused, or aging land and buildings—offers a path that avoids the cost and disruption of greenfield sprawl. Several bills now pending in Congress aim to clear the legal and procedural hurdles that have kept this approach slow in the Philippines. The question is whether these new incentives will be enough to turn aging condominiums and underperforming lots into the next wave of urban housing.
What Brownfield Redevelopment Actually Means
In the Philippine context, brownfield redevelopment is not limited to contaminated industrial sites. The term now covers underperforming residential buildings, aging condominium projects, and even commercial structures that have outlived their useful life. The National Economic and Development Authority (NEDA) identifies this approach as a tool for sustainable densification, and the Philippine Green Building Code (2015), with a 2024 revision under public consultation, supports it by encouraging reuse of foundations and utilities.
What the Proposed Laws Actually Change
Several bills are moving through Congress, each targeting a different bottleneck in the redevelopment process. The most prominent is the Condominium Redevelopment Act (SBN-2726), filed in the 19th Congress and recorded as pending in committee as of July 30, 2024. A refiled version, SBN-235, was logged in the 20th Congress on August 4, 2025, under the title “An Act Providing for the Redevelopment of Condominiums.” A companion bill, SBN-922, seeks to lower the percentage requirement for voluntary dissolution of condominium corporations for condemned or aging projects, pending in committee as of September 1, 2025. On the House side, HB 2286 advances a condominium redevelopment framework, filed on July 24, 2025, and referred to committee.
What these bills share is an attempt to solve the fundamental problem: getting hundreds of unit owners to agree on a sale or redevelopment plan. Current rules require near-unanimous consent, which is nearly impossible in buildings with absentee owners, disputed titles, or residents who cannot afford to relocate. The proposed laws aim to lower that threshold, clarify valuation procedures, and establish a legal mechanism for collective sale—similar to the en bloc systems in Singapore and Japan.
How Other Countries Made This Work
The Philippines is not inventing this model. Japan, Singapore, and South Korea have each developed systems that balance owner rights with the need for urban renewal. Their experience offers a preview of what the Philippine framework might look like—and where it could stumble.
Japan’s Act on Facilitation of Reconstruction of Condominiums (2002) requires approval from at least 80 percent of owners. By 2023, that law had led to over 400 reconstruction projects, especially in Tokyo and Osaka, where half of existing buildings are over 40 years old. Singapore’s en bloc system under the Land Titles (Strata) Act requires 80 to 90 percent owner consent depending on building age. Between 1995 and 2020, over 170 collective sale projects renewed estates like Farrer Court and Pearl Bank Apartments, with explicit compensation formulas that reduced disputes. South Korea’s Urban Renewal Promotion Act supports public–private partnerships in Seoul and Busan, using government incentives, infrastructure grants, and tenant rehousing guarantees to spur thousands of new units annually.
The common thread: clear legal thresholds, transparent valuation, and government-backed relocation support. The Philippine bills borrow from these models, but the implementing rules—still unwritten—will determine whether the system works in practice.
Where the Complications Lie
Valuation Disputes and Fair Compensation
Even with a legal framework, the biggest flashpoint is money. Unit owners in an aging condominium may have very different expectations of what their property is worth. A developer offering a buyout or equity share must negotiate with owners who may be emotionally attached, financially strained, or suspicious of the process. The proposed laws attempt to address this by requiring independent appraisals and transparent voting procedures, but disputes are almost certain in the early years.
Relocation and Displacement
Redevelopment often means temporary or permanent displacement. For low-income residents or elderly owners who have lived in a building for decades, moving is not just inconvenient—it can be financially devastating. The Philippine bills do not yet include explicit relocation assistance or compensation guarantees, which could stall projects or lead to legal challenges. South Korea’s model of tenant rehousing guarantees offers a template, but it would require additional legislation or agency funding.
Local Government Readiness
The Department of Human Settlements and Urban Development (DHSUD) and the Housing and Land Use Regulatory Board (HLURB) are tasked with oversight, but many local governments lack updated zoning ordinances and building codes that accommodate higher densities or mixed-use conversions. Without these, a redevelopment project could be approved at the national level but blocked at the city level.
What Developers and Owners Can Do Now
For Condominium Owners: Understand Your Rights and Options
If you own a unit in an aging building, the first step is to understand the building’s structural condition and the legal status of your condominium corporation. The proposed laws would eventually allow a majority of owners to initiate redevelopment, but until those laws pass, the current rules still apply. Attend homeowners’ meetings, review the corporation’s financial health, and consider whether a collective sale or redevelopment would benefit you more than holding onto a depreciating asset.
For Developers: Start Identifying Candidates
Quezon City, Mandaluyong, Pasay, Cebu IT Park, and Davao business districts are poised as focal points for redevelopment of mid-century condominiums facing structural obsolescence. Developers should begin assessing buildings in these areas for structural viability, owner demographics, and potential for joint venture structures or equity-swap models. The legislative reform clarifies valuation and voting procedures, reducing legal ambiguity and supporting collective sale mechanisms, but early movers will have an advantage in negotiating with owners and local governments.
For Investors: Watch the Implementing Rules
The bills are promising, but the real test will be the implementing rules and regulations (IRRs) issued by DHSUD, HLURB, and local building officials. Investors should monitor these closely, particularly the thresholds for owner consent, the valuation methodology, and the dispute resolution mechanisms. Financial institutions benefit from reduced credit risk as streamlined processes make condominium renewal bankable, but until the IRRs are published, the actual risk profile remains uncertain.
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Frequently Asked Questions
What is the difference between brownfield and greenfield development? ▾
Do all owners have to agree for a condominium redevelopment to proceed? ▾
What happens to owners who don’t want to sell? ▾
Are there tax incentives for brownfield redevelopment? ▾
Which cities are most likely to see redevelopment first? ▾
How does this affect the housing deficit? ▾
What to Watch Next
The Condominium Redevelopment Act and its companion bills are still in committee. The timeline for passage is uncertain, and the implementing rules will take additional months after that. For now, the most useful thing owners, developers, and investors can do is stay informed about the legislative progress and begin assessing the buildings and lots that could become redevelopment candidates. The framework is being built, but the real work—negotiating consent, agreeing on value, and managing displacement—will happen on the ground, building by building.
If this was useful, you might also want to read future-proofing your investment with Philippine real estate trends.
Sources
Does eco-friendly homeownership pay off in the Philippines? — Explores the financial and practical side of green building standards, which directly connect to the brownfield redevelopment incentives discussed above.
Mixed-use investment for secure OFW passive income — A look at how mixed-use developments, a common outcome of brownfield redevelopment, can generate returns for overseas investors.
Condominium redevelopment in the Philippines for urban renewal. Ian Fulgar, 2025.
Marcos approves SIPP 2026 to guide investment incentives. Daily Tribune, 2026.
Marcos approves DTI’s SIPP 2026. Daily Tribune, 2026.
