The Philippines’ real estate market has faced challenges as demand for high-capSTITUTE condos on the rise while oversupply persists. The Philippine builders from Ayala Land, the largest conglomerate in the country, and the billionaire Hy Jamaica Zabol de Ayala’s JG Summit arm are slowing down their construction and marketing efforts in light of the government ban on offshore gaming operators and slower economic growth. As a result, demand for new high-rise properties in Metro Manila has retreated, with unsold units at 70k from 2024, according to property consultants Colliers and Leechiu.
To address this, developers have implemented creative pricing strategies such as low down payments, longer payment terms as well as rent-to-own schemes. These measures are intended to address theAdded Value, but the focus has shifted toward horizontal development projects in non-Metropolitan areas. This approach aims to mitigate inventory issues while retaining market demand. Despite limited success, these initiatives have sparked concerns about oversupply, which the *Robinsons Land Group, led by Ma. Anna Margarita Dy, of Ayala Land, is responding to by offering more flexible payment terms.
While Mybelle Aragon-Gobio‘s projection of blowing through the fourth quarter with a strong fourth-quarter CARS (Concerted All-Income Measure), indicating potential for eight years of inventory to clear by 2025, Ayala Land is focusing on horizontal development to bolster its portfolio. Their investments include spending over 12 billion pesos in the first quarter, with marketing efforts Run in the second half. As interest rates ease, the company plans to launch new projects when rates are seen to fall.
The premium market for middle-income units, priced between 7 and 12 million PHP, is experiencing only slight increases. The 35,500 units remaining unsold are concentrated in this segment, making demand somewhat unresponsive. Meanwhile, the ultra-luxury segment, targeting properties priced at 50 million and above, is booming with strong demand, supported by the DMCI Homes Group’s "rent-to-own" pricing strategy, which reduces upfront costs for potential buyers.
Sm Py, led by the Hy Jamaica Zabol de Ayala family, is optimistic about accelerating demand in 2025, driven by the central bank’s ongoing rate-cutting. Their upcoming 360-hectares reclamation development in Carmona is a key project, positioned in a remote area with mixed-use options. Sm Py has also.skip into off-Metropolitan areas, where demand continues to rise.
The real estate sector is forming a price leadership network, with Mybelle Aragon-Gobio as a leading entity, followed by other builders like The A工委, and a growing number of private companies like DMCI Homes and Mybelle’s competition partners. Together, these developers are offering practical solutions for buyers, aiming to maintain market equilibrium.
In total, the content highlights strategic approaches from various builders, market dynamics, and the formation of a price leadership network, offering insights into the real estate landscape as real estate prices continue to rise.
