Metro manila: Demand in the Metro Manila residential condominium market remains 'intact' despite rising uncertainty driven by inflationary pressures and affordability concerns, Leechiu Property Consultants (LPC) said on Tuesday.
According to Philippines News Agency, LPC's 1H 2026 Philippine Property Market Report, released on July 7, showed that demand reached 7,255 units in the second quarter of the year, only slightly below the previous quarter. LPC Research and Consultancy Director Roy Golez said this was primarily supported by end users, government housing programs, and financing support.
Despite active demand, however, inventory climbed to a new high of 82,900 units across 616 actively selling buildings as supply additions and cancellations outpaced absorption. "Demand is still there, but people are being much more careful about where they put their money. Buyers are looking harder at value and affordability while developers are taking a closer look at which projects to move forward with," Golez said. "The market continues to move, but caution remains a defining theme for both sides," he added.
Meanwhile, new launches increased by 48 percent quarter-on-quarter to 2,586 units, mostly mid- and upper-middle-income units, with take-up still dominated by upper-middle-income to upscale. The LPC said growth continues beyond Metro Manila, noting land appreciation and double-digit growth of residential projects in Central Luzon over the past six months. These include Ayala Land's Alviera and Orchard Vistas and Rockwell Land's Paradise Farms.
The average residential price in Bulacan alone, Golez said, rose by 16 percent to PHP43,000 per square meter in the 1st half of the year, up from PHP37,000 per square meter in the second half of 2025. Pricing in Pampanga also rose by 15 percent to PHP39,000 from PHP34,000 over the same period.
In the broader Luzon, the LPC said the planned Pax Silica initiative is expected to contribute to a broader technology- and manufacturing-led ecosystem across the Luzon Economic Corridor. The project, Golez said, will likely support future demand for industrial estates, offices, research facilities, employee housing, educational institutions, and digital infrastructure.
In the same report, the LPC noted a year-on-year decline of 32 percent to 488,000 sqm. in office demand for the first half of 2026 due to geopolitical instability, with only a handful of deals above 5,000 sqm. in the same period. Despite the softer performance, LPC Director for Commercial Leasing Mikko Barranda said an active pipeline of around 353,000 square meters, driven by IT-BPM and government sectors, indicates interest from key sectors. "If things improve, if sentiments improve, then we believe that we will see that reflected in the demand numbers in the second half of the year," he said.
