Local property developers are slashing prices and offering aggressive incentives to move ready-for-occupancy (RFO) condominium units, driving a notable reduction in unsold inventory, according to Colliers Philippines.

RFO stock fell to 30,500 units in the second quarter, down amid a flurry of promotions aimed at reviving demand in a market still facing elevated vacancy rates.

“We haven’t seen promos as aggressive as this,” said Richard Raymundo, managing director of Colliers Philippines. “Before it was like 10%. Now, it’s like a 45, 50% discount and you can extend the terms. It seems to be working because we’re seeing the backouts have gone down. And then what’s more important is that the take-up is significantly higher this quarter.”

In addition to steep price cuts, developers are offering value-added tax waivers, waived downpayments, rent-to-own schemes, and move-in ready units with furnishing.

Gift certificates worth ₱100,000 to ₱150,000 are also being offered as sweeteners.

The second-quarter strategies mark a step-up from earlier efforts, which focused more on lease extensions and modest cash discounts.

Despite the pickup in absorption, overall vacancy in Metro Manila’s secondary condo market remains high, with one in four units either for lease or resale still sitting idle. Some districts, however, are faring better.

“This elevated vacancy is not seen across Metro Manila,” said Colliers research director Joey Roi Bondoc.

“Some business districts including Makati CBD, Fort Bonifacio, and Ortigas Center continue to perform better compared to the Bay Area, where one of two condominium units remains vacant right now,” he said.

Colliers expects residential vacancy to rise to 25.8% by yearend from 23.9% in 2024, due mainly to new project completions flooding the market with fresh supply.

“By 2026, we will see residential vacancy in Metro Manila’s secondary market finally declining,” Bondoc added. “This is mainly because of limited supply due to less completion in the Metro Manila condominium market.”