Affordable and economic housing segments overtook the traditionally dominant mid-income market in Metro Manila’s pre-selling condominium sector in the first quarter of 2026, reflecting a major shift in buyer demand fueled by government-backed housing programs.
During the Q1 2026 Philippine Property Market Briefing in Taguig, Joey Roi Bondoc said the government’s Pambansang Pabahay para sa Pilipino Program (4PH) is significantly boosting demand among low-income and urban poor buyers.
Bondoc said the housing market is increasingly being influenced by government intervention rather than purely market-driven forces, with the 4PH program helping stimulate condominium demand in the affordable segment.
Under the program, housing projects follow standardized designs with units typically measuring at least 22 square meters, ranging from walk-up buildings to condominium towers.
The Colliers official noted that local government units are becoming more active participants in housing development alongside private developers such as 8990 Holdings.
“In Caloocan, the local government is directly inducing and building projects to meet the needs of its constituents,” Bondoc said.
The shift comes at a crucial time for Metro Manila’s ready-for-occupancy (RFO) condominium market, where affordable and economic units currently account for 42 percent of unsold inventory.
When combined with the lower mid-income segment, these categories represent more than 80 percent of total unsold RFO units in the capital region.
According to Colliers, the 4PH program has already started helping reduce excess supply, with total unsold RFO units in Metro Manila declining from 29,400 to 27,900 units.
Developers have also adopted more aggressive sales strategies since the latter half of 2025 to improve inventory movement. These include flexible lease-to-own arrangements, longer payment terms, and incentives such as free parking slots.
Some developers now offer 36-month rental periods where a portion of payments is credited toward the contract price, while others provide lease-to-own terms of up to 120 months without bank financing.
Bondoc said these efforts have helped shorten the inventory life of Metro Manila’s condominium market, reducing the estimated absorption period to around 7.7 years from more than 13 years previously.
Despite inventory challenges in some areas, Bondoc said the combined efforts of government agencies, local governments, and private developers are helping stabilize the property sector and make housing more inclusive.
He added that remittances from overseas Filipino workers are expected to remain a key driver of residential demand beyond 2026.
