Manila Pushes Housing Amid 79,200 Unsold Condos
Pag-IBIG Fund disbursed P69.19 billion for housing in H1 2026, while Colliers noted 79,200 unsold Metro Manila condos by end-2025.
Manila Seeks Affordability Partnerships
A Philippine lawmaker is advocating for increased public-private collaboration to address the disparity between residential property costs and family incomes. Rep. JP Padiernos, a member of the House Committee on Banks and Financial Intermediaries, proposes stronger partnerships across government agencies, real estate developers, and housing finance institutions.
The initiative aims to identify practical strategies for making homeownership more accessible through manageable monthly payments, ensuring developers can still deliver quality housing at commercially viable prices.
Housing Loan Disbursements Climb
The Pag-IBIG Fund reported a significant increase in housing loan disbursements during the first half of 2026, releasing P69.19 billion for 43,051 units. This represents a 15% rise in loan value and a 9% increase in units financed compared to the same period last year.
Socialized housing loans, targeting minimum-wage and low-income members, surged to P6.70 billion, financing 6,601 units, marking increases of 118% and 132% respectively year-on-year. The fund also offers a subsidized 3% annual interest rate for eligible socialized housing borrowers.
Metro Manila Condo Inventory Persists
Despite increased financing activity, the property market continues to face a supply-demand imbalance. Global real estate research firm Colliers reported approximately 79,200 unsold condominium units in Metro Manila at the end of 2025, including nearly 30,000 ready-for-occupancy units. Colliers' second-quarter 2026 report projected residential vacancy to reach 25.6% by year-end.
The firm identified economic and affordable condominiums as the primary drivers of residential demand in the first half of 2026, highlighting affordability and financing access as crucial for market recovery.
Developers Adapt to Market Dynamics
Major developers recorded varying revenue performance in the first half of 2026. Ayala Land, Inc. generated P41 billion in property development revenues, outpacing Megaworld Corporation's P27.2 billion, SM Prime Holdings' P20.9 billion, and Robinsons Land Corporation's P7.1 billion.
Ayala Land also improved its residential inventory levels, reducing them from 18 months in Q1 to 15 months, and turned over nearly 6,000 residential units across 40 projects. This indicates a focus on aligning housing supply with effective demand, balancing buyer affordability with developer financial sustainability.
This article is journalism, not investment advice; consult a licensed professional before making financial decisions. Market data is indicative, may be delayed, and should be verified with your broker or exchange before use.
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