Developers are using flexible financing schemes to keep the condominium market afloat, even as residential home loans have fallen.
Condominium prices rose 11.1 percent quarter on quarter, a rebound that contrasts sharply with the decline in new home loans.
To make purchases more affordable, developers have introduced incentives such as no spot down payments, zero‑interest equity schemes, and payment terms stretched over five to ten years.
Additional offers, including rent‑to‑own arrangements and early move‑in privileges, have also encouraged buyers to proceed with purchases.
“Developers have engineered affordability at the entry point while defending headline values — and that combination is what the data is capturing,” the director of research and consulting at Cushman & Wakefield Philippines said.
The marketing director at Savills Philippines noted that buyers are increasingly opting for financing arrangements outside traditional bank mortgages, such as extended in‑house financing or outright cash purchases.
Many condominium purchases are made during the pre‑selling stage, when buyers pay installments directly to developers under equity‑based payment schemes instead of obtaining bank financing.
Because bank loans are typically taken only at turnover or completion, the current sales activity does not immediately translate into new home loan volumes, creating a structural lag driven by higher borrowing costs and tighter credit conditions.
These financing incentives unlock demand while allowing developers to maintain headline selling prices.
Flexible payment terms have improved affordability, while limited supply in prime locations and sustained demand from investors and overseas buyers have supported condominium prices.
Affordability remains a key challenge, as the median house price in Metro Manila now exceeds 8.3 million, placing homeownership beyond reach for many salaried workers without financing assistance.
Some buyers are shifting to emerging growth corridors outside Metro Manila, where land is more affordable, yet condominiums continue to appeal to those seeking proximity to central business districts and transport infrastructure.
The market is bifurcating along location and product lines, and assets that combine genuine affordability with strong connectivity are best positioned to hold value.
