DMCI Homes is scaling back new residential launches this year amid rising inventory levels and affordability challenges among buyers. Only two projects — one in Baguio and another in Pasig — are expected in the second half, down from the previously announced four.
In a recent interview with reporters, DMCI Homes president Alfredo R. Austria said the company prioritizes inventory management over new construction. “It’s down to just two,” he said, citing a sharp increase in ready-for-occupancy (RFO) units.
DMCI Homes now has around 3,000 RFO units, a significant jump from the pre-pandemic period when most units were sold before completion. The increase is mainly due to cancellations and buyer defaults, many of which occur during the down payment stage.
Austria noted that about half of these cancellations are voluntary, often influenced by buyers reassessing their financial capability or lifestyle preferences.
To address the growing inventory and ease the burden for affordability-challenged buyers, DMCI is expanding its rent-to-own (RTO) program. Under the scheme, tenants can apply 60 percent of their monthly rent toward a future unit purchase within three years.
“It’s good for the buyer because owning a unit becomes more accessible. It’s also good for us,” Austria said.
He added that the Baguio project will be a low-density, mid-rise development in a prime location near the Baguio Country Club, aimed at the premium market. The Pasig project is still being redesigned and may be pushed to early next year if it misses the target for a 2025 launch.
Despite the cautious rollout, DMCI Homes posted more substantial results in the first quarter of 2025, mainly from recognizing prior sales and forfeiting payments from cancellations.
Austria said demand remains healthy for well-priced, high-quality units, as buyers become more selective in uncertain times and prefer trusted developers.