The Philippine property market continues to grapple with a large supply of unsold, ready-for-occupancy (RFO) condominium units, with inventory estimated at 7.9 years’ worth, prompting renewed calls for government support and structural reforms.

Industry analysts said the figure marks a notable improvement from the 13.4 years of inventory recorded in the second quarter of 2025, reflecting a second straight quarterly decline in unsold stock toward the end of the year, partly due to improved sales performance.

Market data showed condominium take-up rose from about 6,000 units to roughly 10,000 units during the same period. While the increase signals a recovery in buyer activity, sales remain below early 2024 levels, indicating demand has yet to fully rebound.

Despite the improvement, supply pressure continues to weigh on the sector.

Colliers Philippines research director Joey Bondoc said the oversupply is largely driven by weak economic growth and elevated mortgage interest rates, which have constrained buyers’ purchasing power.

“Developers are showing flexibility with easier payment terms and are prudently limiting new launches to manage supply… For sales to truly stimulate, we need that rate to come down,” Bondoc said.

Colliers data showed that unsold RFO units remain heavily concentrated in Quezon City, Manila, Pasay–Parañaque, and Pasig, where absorption has been slower compared to prime districts.

In contrast, Makati Central Business District and Rockwell continue to post limited available inventory, although prices exceeding P300,000 per square meter have constrained transaction volumes.

Meanwhile, pre-selling projects remain concentrated in growth hubs such as Taguig and Pasay, where developers continue to see long-term potential despite softer market conditions.

ASEAN Real Estate Network Alliance co-founder Moby Arquiza said a stronger recovery will require more decisive government action, particularly in governance and economic policy.

“The government should first fix itself. Our leaders are spending almost 80% of their time on politics instead of focusing on the economy. We need a shift to concrete economic reforms, more infrastructure projects, and a serious revival of our lagging tourism industry,” Arquiza said.

He also advised buyers to take advantage of the market slowdown to negotiate better payment terms and lower down payments.