MANILA, Philippines — The partnership between the government and property developers in promoting housing programs has created a way to revitalize housing sales and made affordable homeownership more available even as the real estate industry weathers a prolonged slump in condominium demand, according to Colliers Philippines.
The major developers’ move to collaborate with the government in its housing initiatives was a positive development—one that could help clear unsold condominium inventory while advancing efforts to give more Filipinos access to homeownership, Joey Roi Bondoc, research director of Colliers Philippines, said.
"To somehow make the unsold inventory move, it's a good thing that major developers in the country joined the government housing projects of the Department of Human Settlements and Urban Development (DHSUD) and Pag-IBIG Fund's Expanded 4PH (Pambansang Pabahay para sa Pilipino), so that the industry keeps moving," Bondoc said.
The partnerships channel private-sector housing inventory into the government's 4PH program while opening housing financing to qualified Pag-IBIG members who are seeking more affordable homeownership opportunities.
So far, five major property developers have signed memorandums of understanding with Pag-IBIG in support of 4PH program — Megawide Construction Corp.; Ayala Land Inc., through its housing brands Amaia and Avida; SM Development Corp.; Filinvest Land Inc.; and Robinsons Land Corp. The participating developers have agreed to extend preferential rates and other incentives on housing units in selected projects to qualified Pag-IBIG members covered by 4PH.
Pag-IBIG has likewise raised its maximum loanable amount to P10 million, significantly widening financing options for qualified borrowers, although actual loan approval and affordability will still hinge on the applicable lending requirements and the borrower's capacity to pay.
Describing the government-private sector collaboration as a step in the right direction, Bondoc said that long-term demand for condominium units must be considered in gauging how much the partnerships can truly help the market.
"It's a step in the right direction. It's a good program between the government and private developers," he said.
With the growing demand for house-and-lot developments outside Metro Manila, developers, Bondoc said, will need to factor in shifting buyer preferences as they determine which housing products and locations present the strongest market opportunities.
He stressed that the potential benefits of the partnerships unfold against a difficult backdrop for the condominium sector where declining take-up, elevated financing costs, and a sizable stock of unsold completed units continue to weigh on market activity.
Acquisitions of pre-selling condominium units—properties purchased before construction is completed—had fallen by an estimated 67 percent to 70 percent year on year, making the current period the weakest since Colliers began monitoring the market, according to Bondoc.
With approximately 3,000 acquisitions during the first nine months of the year against 13,000 launches and 10,000 take-ups recorded in 2025, the figures, he explained, reflect different market measures and periods, citing the sharp deterioration in pre-selling activity as reported by Colliers. Roughly 32,000 completed condominium units remained unsold or idle, illustrating the challenge developers face in matching existing supply with effective demand, Bondoc said.
The slowdown was attributed to elevated mortgage rates, higher prices of goods, subdued consumer spending, economic uncertainty, geopolitical tensions in the Middle East and political developments.
Bondoc said mortgage rates around 7.7 percent to 7.8 percent have made financing more expensive, adding to the upfront costs buyers must shoulder when purchasing condominium units through bank financing. For units priced between P3.6 million and P7 million, he said the financial requirements could be out of reach for some prospective buyers—particularly those earning below P60,000 to P70,000 a month.
He also pointed to higher monthly down payment requirements, which could prompt some buyers to withdraw from purchases or fail to qualify for bank loans.
With pre-selling activity under pressure and completed units still unsold, the expanded 4PH partnerships offer developers another potential route to reach qualified homebuyers. Yet Bondoc said the program's longer-term contribution will depend in part on sustained demand for the housing products on offer.
