In the middle of a year marked by steady growth and strategic recalibration, the Philippine property sector is learning how to listen.
At recent market briefings by Leechiu Property Consultants and Lobien Realty Group attended by Property Report, it was clear that Q2 2025 reflects a real estate landscape finding its rhythm. Developers are becoming more responsive. Buyers are becoming more discerning. And the dialogue between the two is starting to evolve in meaningful ways.
The result? A residential market that’s quietly but firmly laying the groundwork for sustainable momentum.
Positive indicators underpin resilience
The fundamentals remain strong. According to Lobien Realty Group, the Philippine economy expanded by 5.4% year-on-year in Q1 2025, continuing the 5.6% growth recorded in 2024. All major sectors posted gains, led by services at 6.3%. With inflation easing to 2.2%, the Bangko Sentral ng Pilipinas cut policy rates to 5.25% by midyear, offering welcome support to the property sector.
According to Lobien Realty Group’s 2025 Mid-Year Report, the current dynamics point to a buyer’s market, with developers offering longer payment terms, discounts, and flexible financing—an encouraging sign for homebuyers and investors.
At Leechiu’s Q2 update, optimism was equally measured. Roy Golez, Director of Research, Consultancy, and Valuation, emphasized the country’s solid economic drivers, including a 7.6% year-on-year GDP increase, continued growth in OFW remittances, and a 71.4% surge in international tourism receipts. “The demand is there, and the capital is increasingly ready,” Golez noted. “But buyers want more than promos—they want confidence and long-term value.”
A market in dialogue
In Metro Manila, new condominium launches rose 31% this quarter to 1,761 units, a signal of growing developer confidence. Take-up also edged up by 2% to 6,643 units, as lower interest rates and developer incentives made purchases more accessible.
What’s evolving, however, is the mindset. Buyers are no longer rushing in—they’re studying the market and expecting more from their investments.
“We believe the developer-buyer relationship has to evolve,” said Golez. “This market isn’t just about discounts anymore. It’s about co-creating solutions—whether through income-enhancing programs, rent support, or stronger after-sales service.”
Strong mid-market uptake and the pull of the south
Beyond Metro Manila, buyer attention continues to shift toward regional growth areas and mid-market offerings.
Lobien’s data shows that the National Capital Region posted a 13.9% increase in housing prices, while condominium prices across the country grew 10.6% year-on-year. Interestingly, regional housing prices contracted slightly by 3.0%—a reflection of more competitively priced inventory and growing buyer interest in lifestyle-oriented locations like Cavite, Laguna, and Rizal.
These areas are gaining ground due to strong infrastructure connectivity and the entry of top-tier developers. “People are choosing well-planned communities where they can build homes, not just investments,” the report noted.
In Cebu, demand for condominiums in the mid-market segment remained robust, especially among first-time homeowners and upwardly mobile professionals. While the supply pipeline remains sizable, market activity is healthy—led by the two lowest middle-income subsegments, followed by the high-end and luxury tiers.
Signs of confidence
Though investor-driven segments are more selective—particularly in light of rental yield adjustments—overall market sentiment is cautiously optimistic. Developers continue to roll out units with stronger value propositions, while financing institutions are gradually broadening loan accessibility.
And with more policy rate cuts potentially in play, the second half of 2025 may see even stronger buyer engagement.
“Now is a strategic time for homebuyers and long-term investors to explore options,” said Golez. “We see more alignment between product and demand—what’s needed now is continued trust and responsiveness.”
As the residential market steadily gains traction, one theme keeps emerging: collaboration. Developers who listen and adapt. Buyers who ask the right questions. And a market that rewards those who plan—not just for the present, but for the years ahead.
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