The Philippine real estate sector is grappling with a persistent mismatch between developers’ property inventories and genuine market demand, according to Anthony Leuterio, founder of property brokerage Filipino Homes.
He said many companies are missing the mark by concentrating on premium projects in areas that do not align with buyers’ financial capacity or preferences.
“There is a vast market for real estate in the Philippines, but what’s available does not always match what people really need,” Leuterio said, noting that the problem is especially pronounced in Metro Manila.
Developers, he added, risk overlooking a significant portion of the population eager to purchase homes that fall within more affordable price ranges.
Leuterio attributed the mismatch partly to skewed market research. “Studies are often developer-centric,” he explained.
“They focus on justifying upcoming projects rather than gauging actual buyer demand.” The result, he said, is a surplus of high-end or ill-suited properties, leaving many prospective buyers unable—or unwilling—to purchase what is currently on offer.
In addition to flawed analyses, Leuterio highlighted the tendency of some developers to rely solely on in-house data.
By doing so, they may overlook broader market indicators or emerging consumer trends.
To address the gap, Leuterio urged companies to consider working with external marketing experts and conducting more rigorous research into buyer capacity, lifestyle preferences, and location appeal.
He also cautioned that simply building more units will not solve the issue if developers fail to align new projects with the purchasing power of consumers.
“It’s vital to identify where the real opportunities lie,” Leuterio said. “Developers must craft offerings that cater to unmet needs and ensure affordability.”
Leuterio believes that by adopting a more customer-centric approach, developers stand to unlock the full potential of the Philippine real estate market and set the stage for robust, long-term growth.
BusinessNews.ph
