Condo Oversupply in Metro Manila Caused by Supply-Demand Mismatch — Realtor

The oversupply of condominiums in Metro Manila, now equivalent to 34 months’ worth of inventory, stems from a mismatch between developer output and actual buyer demand, according to Anthony Leuterio, founder of Filipino Homes.

Flawed Market Analysis

Leuterio identified a key issue in the real estate market: developers relying on skewed market studies that cater to their internal perspectives rather than addressing buyer needs. This has led to an oversupply of high-cost properties in areas that do not align with the financial capacity or preferences of potential buyers.

“The problem is not the lack of buyers but the mismatch between inventory and unmet demands,” he said.

Shift in Strategy Needed

Leuterio urged developers to:

• Conduct market-oriented research to understand the true financial capacity and preferences of buyers.
• Focus on affordable housing options in suitable locations rather than building expensive projects that demand high recovery costs.
• Engage marketing professionals for better insights into market demand, moving away from purely developer-focused studies.

Real Estate Challenges

The current state of the real estate market presents a significant challenge to developers, who must recalibrate their strategies to address this imbalance.