In an effort to rejuvenate the stagnant real estate sector, major property developers are collaborating with the Philippine government to enhance housing programs. This partnership aims to address the growing issue of unsold condominium inventory while increasing access to affordable homeownership.
Partnership Details and Goals
According to Joey Roi Bondoc, research director at Colliers Philippines, this partnership is a significant step forward. "To somehow make the unsold inventory move, it's a good thing that major developers joined the government housing projects of the DHSUD and Pag-IBIG Fund's Expanded 4PH program," he stated.
- Five major developers have signed agreements with Pag-IBIG: Megawide Construction Corp., Ayala Land Inc., SM Development Corp., Filinvest Land Inc., and Robinsons Land Corp.
- Developers will offer preferential rates and incentives to qualified Pag-IBIG members under the 4PH program.
The Pag-IBIG Fund has increased its maximum loanable amount to P10 million, broadening financing options for eligible borrowers. However, actual loan approvals will depend on various lending criteria.
Bondoc emphasized that while this collaboration is promising, it is essential to consider the long-term demand for condominium units in evaluating the partnership's effectiveness. With the market currently facing challenges such as high financing costs and a significant inventory of unsold units, careful planning and adaptation will be key.
The condominium sector has seen a drastic decline in pre-selling activities, with a reported drop of 67% to 70% year-on-year, marking the lowest levels since Colliers began tracking the market. Approximately 3,000 acquisitions occurred in the first nine months of the year, in stark contrast to the 13,000 launches and 10,000 take-ups recorded in 2025.
Bondoc attributes this slowdown to various factors, including elevated mortgage rates hovering around 7.7% to 7.8%, rising prices, and broader economic uncertainties. These conditions have made home financing increasingly difficult for many potential buyers.
As developers navigate these challenges, the expanded 4PH partnerships offer a promising avenue for connecting with qualified homebuyers. However, Bondoc cautions that the program's ultimate impact will depend on sustained demand for the housing options provided.