The Philippine residential property market has staged a vigorous and decisive rebound, achieving its strongest quarterly performance in over two years, thanks almost entirely to the resilience and buying power of the affordable and mid-income segments.
According to the latest data from leading property management firm Colliers Philippines, the third quarter of 2025 marked a crucial turning point, proving that the market’s core strength lies with its middle-class buyers.
‘The trend shows that the middle market can still create a major impact in the market,’ confirmed Joey Roi Bondoc, Research Director of Colliers, speaking to reporters on the sidelines of the firm’s recent Q3 2025 briefing held in Bonifacio Global City. He added that the growing confidence among homebuyers, signaled by a substantial surge in sales and a noticeable decline in buyer cancellations, indicates a positive and sustainable trajectory for the sector.
A decisive surge in take-up
The numbers for Q3 2025 tell a powerful story of recovery. Residential take-up, the critical gauge of market health, more than doubled, soaring by a remarkable 108 percent to reach 5,900 units. This substantial jump from the 2,800 units recorded in the second quarter makes Q3 2025 the strongest quarterly take-up seen in nine quarters.
The catalysts for this explosive growth are the affordable and mid-income segments-defined by units typically priced between P2.5 million and P12 million. Colliers’ data confirms their undeniable dominance, revealing that these accessible price points accounted for over 90 percent of pre-selling projects for the first nine months of 2025.
Bondoc was quick to point out that this trend underscores the sustained, inherent demand from the Filipino housing market’s backbone: the resilient Overseas Filipino Workers (OFWs) and the burgeoning class of mid-level employees who view these segments as the most attainable path to homeownership.
Improved commitment and buyer confidence
The positive shift extends beyond mere volume; it reflects improved buyer commitment and a newfound sense of market stability.
A significant indicator highlighted by Bondoc is the dramatic drop in backout rates, where buyers cancel their purchases. Cancellations declined for the second consecutive quarter, falling by 26 percent from 3,600 units in Q2 to 2,700 units in Q3. This consistent decrease in buyer attrition signals a greater conviction in purchase decisions and suggests a healthier financing environment supporting these commitments.
To complement the rise in demand and capitalize on this buyer confidence, developers are aggressively implementing strategies that have essentially created a more accessible market. Bondoc noted that developers are rolling out incentives rarely seen in previous years, including innovative payment schemes such as extended down payment terms (some stretching up to 84 months) and attractive rent-to-own options.
‘These measures significantly lower the financial barrier, particularly for first-time buyers,’ he said, connecting the developers’ proactive moves directly to the macro environment. A generally positive macroeconomic climate, characterized by easing inflation and a robust, consumer-driven economy, continues to bolster consumer confidence and spending power, reinforcing the capacity of buyers to commit long-term.
Decentralization and the lingering challenge
Bondoc observed that the market is also becoming increasingly decentralized. Developers are prioritizing and finding strong success in thriving localities outside Metro Manila. Key secondary cities like Cebu, Davao, and Iloilo are recording robust take-up rates, driven by decentralization efforts and infrastructure improvements that make regional properties more desirable.
Despite this strong take-up, the market still grapples with the lingering challenge of a substantial unsold inventory. As of the third quarter, Metro Manila grapples with approximately 30,400 unsold units.
‘Colliers estimates that the time needed to fully absorb this inventory is about five times longer than in the pre-pandemic period, highlighting the need for developers to sustain this strong sales momentum,’ he explained.
Interestingly, the composition of this unsold stock reveals a specific focus area for developers. While the affordable segment accounts for about 35 percent of the remaining ready-for-occupancy (RFO) units, the mid-income segment makes up a larger share at 47 percent. Bondoc advises developers to maintain creative and competitive pricing, especially for completed units, to quickly absorb this stock and prevent it from becoming a drag on new launches.
Ultimately, the market’s health depends on these segments. Bondoc concluded that the mid-income and affordable units play a pivotal role, because they are ‘the segments, of course, that can somehow be achieved or can be acquired by, say, a mid-level employee, and this should bode well for the Philippine property.’