Developer-gov’t partnership seen reviving dwindling real estate sales — Colliers

Real estate developers’ growing participation in government-backed housing programs is emerging as a potential lifeline for reviving sales and expanding affordable homeownership, even as the industry contends with a prolonged slowdown in condominium demand.

Joey Roi Bondoc, research director of Colliers Philippines, said the move by major developers to partner with government housing initiatives could help move unsold inventory while supporting homeownership.

“In terms of making unsold inventory move, it’s a good move that major developers in the country have made in joining government housing projects of the Department of Human Settlements and Urban Development and Pag-IBIG Fund’s Expanded 4PH, so that the industry keeps moving,” Bondoc said.

Private-sector housing inventory into 4PH

The partnerships integrate private-sector housing inventory into the government’s Expanded Pambansang Pabahay Para sa Pilipino (4PH) Program, with financing made available to qualified Pag-IBIG Fund members.

According to the Department of Human Settlements and Urban Development, five major developers have signed memorandums of understanding with Pag-IBIG Fund to support the program, namely Megawide Construction Corp., Ayala Land Inc., through its housing brands Amaia and Avida, SM Development Corp., Filinvest Land Inc. and Robinsons Land Corp.

Under the agreements, participating developers will offer preferential rates and other incentives for selected projects to qualified members under the Expanded 4PH Program.

The initiative gives developers an additional channel to reach a wider pool of buyers, while giving Pag-IBIG members access to housing options backed by government financing.

Pag-IBIG Fund earlier raised its maximum loanable amount to P10 million, which could broaden options for eligible borrowers, subject to lending requirements and capacity to pay.

Bondoc described the collaboration as a step in the right direction, but noted that long-term condominium demand will determine how much relief the partnerships can provide.

“It’s a step in the right direction. It’s a good program between the government and private developers,” he said.

He also flagged growing demand for house-and-lot developments outside Metro Manila, saying developers will need to factor in shifting buyer preferences when assessing which products and locations offer the strongest opportunities.

The government partnerships come as developers struggle to match supply with demand.

Bondoc said take-up of pre-selling condominium units — units sold before completion — has fallen by an estimated 67 percent to 70 percent year on year, the weakest period since Colliers began tracking the market.

He cited around 3,000 pre-selling acquisitions in the first nine months of the year, compared to 13,000 launches and 10,000 take-ups recorded in 2025, highlighting the sharp deterioration in activity.

He added that around 32,000 completed condominium units remain unsold, underscoring the challenge of elevated financing costs and weak demand.

The partnerships, he said, create a way to connect available inventory with qualified buyers, making them relevant both to the government’s homeownership push and to developers seeking new sales channels.