Unlocking aging condo value in Metro Manila
From AB Capital's The Opening Bell: Three Moves
Event
A proposed Condominium Redevelopment Act aims to reduce voting thresholds for dissolving aging condo corporations, easing the redevelopment of older, well-located projects. The measure would cut consent from 100% to two-thirds for 30-50 year projects, and a simple majority for 50-plus year developments.
View
We think this could materially shift residential dynamics in Metro Manila where oversupply and aging stock depress pricing. By lowering legal barriers, developers can replace obsolete buildings with higher density, market-aligned assets, unlocking land value and potentially stabilizing mid-income condo pricing after years of weak presales and supply gluts.
Catalyst
Success hinges on Senate approval and implementation clarity. If enacted, redevelopable land in key CBDs may attract faster timelines and premium pricing, though, risk lies in minority opposition or legal challenges. A modest case sees a 5-10% uplift in prime residential values in targeted districts, in our view.
Action
For property and construction names, we believe this supports a pivot toward redevelopment plays and township extensions, instead of greenfield inventory. Monitor approval timelines and early projects in Makati/Ortigas/Manila for early lead indicators of renewed demand and pricing confidence.
Disclaimer: The information, analyses, and views contained herein is based on sources which we, AB Capital Securities, believe are reliable, but is not guaranteed by us and is not to be considered all inclusive. It is not to be construed as an offer or solicitation of an offer to sell or buy the securities herein mentioned. AB Capital Securities and its Directors and Officers and/or members of their families may have a position in the securities herein mentioned and may make purchases and/or sales of the securities from time to time in the open-market and otherwise.
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