Metro Manila’s condominium unit surplus is turning the real estate market on its head, creating a wave of change that impacts prices and availability. This shift presents both challenges and unique opportunities for savvy investors and homebuyers. By understanding the forces at play, you can make more informed, strategic decisions in a market that’s anything but ordinary.
Why Is There a Condominium Surplus in Metro Manila?
Developers have built thousands of new condo units in recent years, expecting high demand. However, several factors have contributed to the current oversupply:
- Pandemic Aftermath – Many buyers delayed purchases, leading to an excess of unsold units.
- Work-From-Home Trends – More professionals are choosing houses in suburban areas over city condos.
- Ban on POGOs – The president’s decision to ban Philippine Offshore Gaming Operators (POGOs) has led to decreased demand for rental units, particularly in areas where these businesses were concentrated.
As of November 2024, there are approximately 67,600 unsold units across 510 buildings in Metro Manila, equating to about 34 months’ worth of inventory (GMA Network).
How the Surplus Affects Real Estate Prices
The increasing supply of condominium units in Metro Manila is creating significant changes in real estate prices and market behavior. Here’s how:
- Lower Selling Prices
As competition among sellers intensifies, new developments are offering attractive discounts and flexible payment terms to stand out in a crowded market. For instance:- Ice Tower by SMDC offers a 10% discount on all studio units, a 15% discount on all 1-bedroom units, and a massive 50% off parking slots.
- Wil Tower by Vista Residences offers a 40% discount on the total contract price for spot cash payments on Studio Unit C, resulting in a significant savings of ₱2,790,026.
- Declining Rental Rates
With more units available for lease, rental prices, especially in prime business districts like Makati and BGC, have softened. Landlords are also offering additional perks, such as free months of rent, to attract tenants in an increasingly competitive rental market. - Longer Selling Periods
With so many options on the market, properties are taking longer to sell. Buyers now have more choices, pushing sellers to be more competitive with their pricing and to offer added value, such as improved amenities or flexible deal structures, to close deals successfully.

How It Affects Different Market Segments
1. Condo Buyers for End-Use
- More options in prime locations with bigger discounts.
- Developers offering better financing and flexible payment terms.
- Buyers can negotiate added perks like waived fees or free furnishings.
2. Condo Buyers for Investment
- Rental yields are lower due to declining rental rates.
- Investors need to carefully choose locations with strong rental demand.
- Long-term appreciation potential remains, but short-term profits may be limited.
3. Condo Sellers
- Tougher competition due to high inventory.
- Pricing strategies need to be aggressive to attract buyers.
- Upgrades or incentives such as fully furnished units may help close deals.
Opportunities for Buyers and Investors
If you’re looking to buy, this market presents excellent opportunities:
- More Affordable Prices – Buyers can negotiate better deals.
- Higher Inventory – There are plenty of options in prime locations.
- Flexible Payment Terms – Developers are offering longer payment plans with lower down payments.
What This Means for Sellers
Selling a condo in an oversupplied market can be challenging. Here’s what you can do:
- Price Your Unit Competitively – Research similar listings and adjust your price accordingly.
- Enhance Your Property – Small upgrades can make your unit more attractive.
- Highlight Unique Features – Emphasize amenities or location advantages to stand out.
How Ohmyhome Can Help You Find the Best Property Deals
Navigating the real estate market during a condo surplus can be overwhelming, but with the right guidance, it becomes an opportunity. Ohmyhome makes it easy for buyers to find the best deals on condominiums with data-driven insights and a user-friendly platform. Whether you’re looking for significant discounts, flexible payment terms, or strategic investment opportunities, Ohmyhome connects you to the right properties, helping you make informed decisions and secure the best value in a competitive market.