Metro Manila’s property market is turning cautious, with office leasing decisions slowing and condominium developers dialing back new launches as vacancies climb, according to Colliers Philippines.
Joey Bondoc, the firm’s director and head of research, said several prospective tenants—including BPOs and traditional local firms—have postponed signing contracts. “Due diligence is taking longer, and a lot of accounts are being paused. Initially, we were very optimistic,” he said at the Pandesal Forum on Tuesday.
Office vacancy has reached about 23 percent, reflecting softer demand, though select submarkets continue to post healthier rates of 9 to 12 percent.
In the residential segment, developers are also exercising restraint amid weakening market conditions. Bondoc noted that both demand and supply have eased, with fewer condominium units expected to be completed annually from 2026 onward.
Around 7,100 units are projected for delivery each year—roughly half the volume recorded between 2017 and 2020.
The slowdown predates the pandemic, driven partly by buyer backouts and a buildup of secondary market inventory.
Metro Manila’s condominium vacancy rate has climbed to around 25 percent, meaning roughly one in four units is vacant or available for lease or resale. Some areas are under heavier pressure, with the Bay Area posting vacancy levels as high as 60 percent.
Despite these headwinds, Bondoc said the current environment could favor end-users. Softer prices and a wider selection of available units are creating opportunities for buyers focused on long-term occupancy rather than short-term speculative gains.
