ABREP: 9,000 condo cancellations in Metro Manila need closer scrutiny

CEBU, Philippines — The reported cancellation of 9,000 condominium purchases in Metro Manila this year needs closer scrutiny, with the real estate brokerage industry calling for greater transparency over the data and the extent to which financing constraints are driving buyer withdrawals.

Anthony Leuterio, president of the Association of Real Estate Brokers of the Philippines (ABREP), said the figure cited by Colliers Philippines should be accompanied by a clear methodology, transaction coverage and a detailed breakdown to establish whether it accurately reflects the state of the property market.

In a report published on Oct. 28, Bilyonaryo quoted Colliers Philippines research director Joey Roi Bondoc, as saying that 9,000 condominium purchases in Metro Manila were cancelled in the first nine months of 2026, including 5,200 units under construction and 3,800 ready-for-occupancy units. Pasig accounted for the largest concentration of cancellations.

Bondoc attributed many of the withdrawals to buyers struggling to secure bank financing or settle outstanding balances as their units approached turnover.

The financing pressure often emerges around the fifth year of payments, when buyers who initially benefited from relatively low monthly installments under developer financing must secure bank loans to pay the remaining balance.

Some developers allow buyers to spread 10 percent of a condominium’s contract price over five years, translating into monthly payments of about P10,000 to P12,000. However, the financial burden can increase substantially when buyers are required to obtain bank financing for the balance.

Leuterio said a more comprehensive disclosure should include the total transactions covered, the study period, and the developers and financial institutions represented in the data.

He also called for cancellations arising specifically from loan disapprovals to be separated from those caused by other circumstances.

Financing difficulties do not necessarily indicate that buyers are financially incapable of completing their purchases, he said. Temporary job losses, employment arrangements, documentation requirements and difficulties verifying overseas income can affect loan applications. Some buyers may still qualify through alternative banks or by submitting updated documentation.

The ABREP president, who also founded Filipino Homes, cautioned against equating initial cancellations with permanent losses for property developers, arguing that the distinction between cancelled transactions and unsold inventory is critical in assessing the market’s actual condition.

A developer that records 200 cancellations, for instance, may subsequently resell 150 of the affected units. While all 200 withdrawals remain part of its transaction history, the impact on its remaining inventory is materially different.

The industry should therefore distinguish among initial cancellations, financing-related withdrawals, units subsequently resold and properties that remain unsold, Leuterio said.

He also urged developers and brokers to assess whether buyers received sufficient assistance in preparing loan applications and exploring alternative financing options before transactions fell through.

Responsibility for failed purchases should not automatically be assigned to buyers, banks or prevailing market conditions without examining the circumstances surrounding individual transactions, he added.

“If the figure is accurate, let us see the supporting data, the methodology, and the breakdown,” Leuterio said.

He said transparent, evidence-based reporting was essential to ensuring that market assessments reflect actual conditions, protect public access to reliable information and sustain confidence in the Philippine property sector. — (FREEMAN)