DMCI Homes Inc., the property development unit of DMCI Holdings Inc., is seeing a marked increase in unsold condominium units due to a surge in buyer cancellations, prompting a strategic shift toward ready-for-occupancy (RFO) and rent-to-own offerings.
Company president Alfredo Austria attributed the spike in cancellations to persistently high interest rates and elevated housing costs, which have strained both buyers and developers. “Most of the defaults come from those who decided not to continue when the monthly amortization became higher,” Austria said, citing lifestyle considerations among buyers as a key factor in abandoning units.
DMCI now has approximately 2,000 RFO units and around 3,000 unsold units in total—figures that contrast sharply with the company’s pre-pandemic norm, when most developments were pre-sold before completion.
Despite the cancellations, Austria said sales remain resilient, with more discerning buyers driving demand for quality and value. “Normally in a crisis like this, there’s a flight to quality,” he noted, adding that normalization in the housing market may take another two years.
The shift has had a notable impact on DMCI’s commercial performance. In the first quarter of the year, DMCI Homes contributed ₱1.4 billion to DMCI Holdings’ income—a 56 percent increase from ₱879 million in the same period last year. The gain was fueled by newly recognized sales, stronger rental and forfeiture income, and finance earnings.
Rent-to-own arrangements are also gaining traction, Austria said, as buyers opt for flexibility amid economic uncertainty. These schemes allow tenants to rent for up to three years with the option to purchase, offering a “win-win” for both parties.
Austria emphasized that while sales have slowed, projects like Prisma in Pasig still hit revenue targets through price adjustments, with profits expected to follow as unsold units are eventually taken up. “It’s just a matter of time. The cash flow is just slower,” he said.
