LOWER mid-income condominium units accounted for 44% of Metro Manila’s unsold ready-for-occupancy (RFO) inventory as of the second quarter of 2026, according to property consultancy Colliers Philippines, as developers continued to offer flexible payment terms to attract buyers.
In survey results released on Wednesday, Colliers said condominium units priced between P3.6 million and P7 million made up the largest share of unsold RFO inventory in the capital region.
Within the P3.6-million to P5-million price segment, unsold RFO inventory reached 9,260 units as of the second quarter.
Quezon City, covering its northern and southern areas, accounted for the largest share of this inventory at 3,020 units, followed by Parañaque with 1,580 units and Pasay with 1,410 units, according to Colliers.
The consultancy said developers had been offering extended payment terms and promotional incentives to encourage purchases amid the unsold inventory.
Its survey showed that 61% of respondents identified extended and flexible payment terms as an incentive that would encourage them to purchase a condominium unit in Metro Manila.
“The promos appear to have been effective, as Colliers recorded an improvement in take-up for lower mid-income units from the second quarter (Q2) to [the] third quarter (Q3) [of] 2025,” the consultancy said.
However, Colliers said buyer back-outs in the lower and upper mid-income condominium segments increased again in the first half of 2026, particularly for projects that had recently been completed or were nearing turnover.
Colliers also proposed raising the value-added tax (VAT) exemption threshold for residential properties as another measure to address unsold condominium inventory.
“In our opinion, raising the VAT exemption ceiling could also help reduce remaining inventory and improve affordability by shielding buyers from elevated interest and mortgage rates,” the consultancy said.
The survey also examined residential property investment preferences, with condominium units in major business districts and house-and-lot developments in North or South Luzon each receiving 31% of respondents’ preferences.
Lot-only properties in provincial areas accounted for 24%, while beachfront developments received 14%.
On sustainability, Colliers said all survey respondents considered green features important when purchasing residential properties.
“In our view, the adoption of green and sustainable features will play a crucial role in futureproofing not only office towers but also residential developments,” the consultancy said. — Juliana Chloe A. Gonzales