Philippine Realty Group Acres Questions Condo Oversupply Claims

A real estate industry leader challenged reports suggesting the Philippine condominium market is oversupplied, saying claims of a two- to three-year wait for units to sell overlook critical factors that drive demand.

Chris Malazarte, National President of the Accredited Real Estate Salespersons of the Philippines, Inc. (Acres Philippines Inc.), said that while some developments have sluggish sales due to less advantageous locations or mismatched pricing, many others are selling out quickly.

According to Malazarte, location, price points, developer reputation, amenities and marketing efforts all impact absorption rates, making blanket conclusions about oversupply misleading.

“Developers continue to launch new projects because their existing inventories are running low,” Malazarte said.

He pointed out that this level of activity, as well as sustained interest in new properties, indicates a market that remains robust.

In particular, strong demand ranges from affordable units to more upscale offerings, highlighting a diverse consumer base within the country’s expanding middle class.

Malazarte urged industry analysts to recognize the varied nature of real estate markets before drawing general conclusions about oversupply.

He cautioned that negative assessments lacking nuance could erode public confidence in what he described as a thriving sector.

Acres Philippines Inc. similarly called on stakeholders to adopt data-driven approaches, arguing that economic fundamentals, demographic shifts, and ongoing urbanization continue to support growth.

The Philippines has recorded steady residential and commercial construction activity in recent years, with many developers projecting optimism for the foreseeable future.

Market observers note that overseas Filipino workers, local end-users and foreign investors are contributing factors to the sustained appetite for real estate.

Acres Philippines Inc. said it remains confident in the industry’s long-term viability, citing strong fundamentals and continued investments as key drivers of market resilience.

Business News Asia

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