Recent reports suggesting a glut of condominiums in the Philippines—with units supposedly taking two to three years to sell—have come under scrutiny from Chris Malazarte, National President of the Accredited Real Estate Salespersons of the Philippines, Inc. (Acres Philippines Inc.).
According to Malazarte, these conclusions overlook key considerations that shape unsold inventories.
“The assessment oversimplifies the situation,” he said, emphasizing that variables such as location, price points, developer reputation, buyer preferences, amenities, and marketing strategies all play a part in determining sales outcomes.
Malazarte cautioned that slower absorption rates in certain areas cannot be taken as a barometer for the industry at large.
While some developments may experience lagging sales due to mismatched pricing or less strategic locations, numerous other projects have rapidly sold out, highlighting a steady demand for properties that align well with market needs.
Malazarte also underscored that developers continue launching new projects precisely because their existing inventories are running low, an observation he says directly counters the notion of widespread oversupply.
He called on analysts to adopt a more balanced perspective, noting that “real estate is not a one-size-fits-all industry.”
Each project, he argued, requires a thorough examination of its unique circumstances and the macroeconomic trends driving local and national demand.
Acres Philippines Inc. maintains that evidence-based, nuanced evaluations offer a more accurate reflection of the market’s condition.
The organization remains optimistic about the industry’s long-term potential, citing the country’s robust economic fundamentals, the steady growth of the middle class, and ongoing urban development initiatives.
These factors, Malazarte says, continue to bolster confidence in the Philippine real estate sector.
BusinessNews.ph