Urban jungle

Metro Manila's condominium units oversupply is increasing.

- MARY ANN LL. REYES

Last October, Leechiu Property Consultants (LPC) reported that there was an oversupply of 29 months' worth of condominium units in the metropolis. This, they said, was due mainly to high interest rates and external risks, along with a shift in buyer preferences.

This means that it would take 29 months for the current inventory of units to be sold at the prevailing sales pace.

LPC research and consultancy director Roy Golez Jr. noted a shift in preference toward single-detached homes and properties in nearby provinces, adding that changing buyer preferences and rising interest rates have slowed demand for residential condominiums in Metro Manila.

The report did not mention the exodus of POGOs and their workers, both of which used to purchase or lease many condo units in the metropolitan area, as a reason for the increasing oversupply.

According to one report, condo demand has hit the lowest level since the COVID-19 pandemic, stabilizing at 6,885 units sold in the third quarter of the year. New condominium launches also declined by 39 percent to 2,145 units during the said period.

The LPC report said there were 67,600 units across 510 actively selling buildings in Metro Manila, the highest since the pandemic. Quezon City had the biggest number of available units with 18,500, followed by Ortigas with 13,500, the Bay Area in Pasay with 10,500, Manila with 8,500 and Caloocan with 8,100.

Recently, new data from LPC showed that the oversupply of condo units has gone up to an equivalent of 34 months as of November.