Real estate opportunity?
The Philippine real estate market is experiencing a glut of 74,000 to 75,300 unsold condominium units, which could take 5.8 to 8.2 years to absorb. Prices have not corrected enough to attract buyers, and government-mandated zonal values are inflating transaction costs.
The Philippine real estate market is facing a significant glut, with 74,000 to 75,300 unsold condominium units. This inventory could take 5.8 to 8.2 years to absorb, indicating a softening market. The issue is compounded by prices that haven't corrected enough to attract legitimate buyers and government-mandated zonal values that exceed actual market values. These zonal values inflate transaction costs, further dragging down demand. The market is also affected by current political uncertainty, a slowing economy, and unresolved conflicts in the Middle East. Real estate prices should arguably drop by 24 percent or more to be considered a safe bet, based on a six-to-eight-year inventory overhang and a four percent interest rate on placements. It is suggested to wait six months to a year before seeing a true alignment of prices with reality.
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