An overseas Filipino worker who has already paid about ₱608,000 toward a preselling condominium in Metro Manila is facing a difficult decision as the capital’s property market contends with record unsold inventory, developer discounts and weaker pricing conditions.
The buyer, identified as Peter, has been paying roughly ₱38,000 a month for 16 months toward a 32-square-metre condominium unit along Pioneer Street in Mandaluyong. His agreed equity payment totals ₱2.2 million over 60 months.
His case reflects a broader challenge emerging across Metro Manila’s condominium sector: buyers who committed to properties during the preselling stage may now find comparable units being offered at lower effective prices as developers compete to clear unsold inventory.
Leechiu Property Consultants reported that condominium inventory climbed to a record 82,900 units across 616 actively selling buildings in the first half of 2026. Quarterly demand stood at 7,255 units.
Colliers Philippines separately reported that Metro Manila ended 2025 with around 79,200 unsold condominium units, representing close to eight years of supply.
The pressure is particularly relevant in the Ortigas-Mandaluyong-Pasig-San Juan corridor, where around 14,000 unsold condominium units were recorded in the first quarter of 2026, according to Leechiu data cited in the report.
Developers use discounts to attract buyers
Property developers have increasingly turned to discounts, extended payment terms and other incentives to stimulate sales.
Colliers said developers were offering concessions on ready-for-occupancy units, while Leechiu reported discounts of up to 16% in some developments and between 25% and 50% on selected units during the first quarter of the year.
The discounts can create a widening gap between a condominium’s advertised price and the amount buyers ultimately pay.
For existing buyers, that difference can become significant. Someone who committed to a unit at its original preselling price could find that a comparable property is later available under more favourable terms.
Colliers has described Metro Manila as a buyer’s market, with developers using promotions, longer payment periods and rent-to-own arrangements to attract demand.
Maceda Law offers protection, but timing matters
Buyers struggling to continue installment payments may be protected under Republic Act No. 6552, known as the Maceda Law or Realty Installment Buyer Protection Act.
The law covers certain real estate purchases made through installments, including qualifying condominium transactions.
Buyers who have paid at least two years of installments are entitled to stronger protections. Guidance from the Department of Human Settlements and Urban Development says eligible buyers may receive a grace period equivalent to one month for every year of installment payments.
If the contract is cancelled after the buyer has reached the two-year payment threshold, the buyer may also be entitled to a cash surrender value equal to 50% of total payments made. The amount can increase after five years of payments, subject to limits under the law.
Peter, however, has paid for only 16 months.
That means he has not yet reached the two-year threshold linked to the 50% cash surrender protection.
For buyers who have paid for less than two years, DHSUD guidance provides a grace period of at least 60 days from the date an installment becomes due. The standard provision for this period does not provide the same cash surrender benefit available to buyers who have completed at least two years of payments.
The report cautions buyers against assuming that simply reaching the 24-month mark will automatically guarantee a refund, as individual contracts, payment histories and cancellation procedures can affect the outcome.
Buyers may have alternatives to default
The Maceda Law may also allow buyers to explore options other than immediately abandoning a contract.
Depending on the circumstances and applicable legal requirements, buyers may be able to assign their rights to another person, reinstate an account during the applicable grace period, renegotiate payment arrangements or restructure the agreement with the developer.
Such options could become increasingly important if a buyer owes more on a property than the amount it could realistically fetch on the resale market.
The report illustrates the risk through a hypothetical condominium bought for ₱6.5 million. If comparable units later sell for ₱5 million while the buyer still owes ₱5.5 million, selling the property would not be enough to clear the outstanding obligation.
The situation highlights the difference between a developer’s list price, a seller’s asking price and the value established through actual transactions.
Metro Manila’s condominium sector continues to face a mismatch between supply, affordability and buyer demand. Colliers reported a residential vacancy rate of 24.7% at the end of 2025 and projected it could rise to around 25% in 2026.
For buyers already committed to preselling properties, the changing market makes contract review, realistic property valuation and professional legal advice increasingly important before any decision to stop payments or cancel a purchase.
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