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Several areas in the National Capital Region (NCR) are grappling with the oversupply of condominium units due to high interest rates, external concerns, and shifts in consumer preference. Experts claim that this oversupply of condominium units will take approximately 8.2 years to completely absorb and are targeting Overseas Filipino Workers (OFWs) as the potential market.

Joey Bondoc, a Senior Research Manager at Colliers International Philippines, notes that high interest rates are one of the key factors of the oversupply of condominium units, with Bangko Sentral ng Pilipinas (BSP) maintaining its lending rate of 6.25% in February 2025. There has also been a noticeable shift in consumer preferences brought about by the pandemic, such as remote work. According to Alyssa et al. (2023), prospective real estate buyers preferred single-detached houses with three bedrooms. Furthermore,  LPC Research and Consultancy director Roy Golez Jr. states that consumers are eyeing nearby provinces regarding housing (Cabuenas, 2024).

Apart from these factors, there is also a mismatch between the supply of units and consumers' demand. The development of units does not align with the market needs and the consumer’s purchasing power (Cordero, 2025). According to a study by the Philippine Institute for Development Studies (PIDS), low-income and middle-class families struggle to afford the upfront costs of buying homes and the bank requirements, such as proof of income or ability to pay. While housing prices continue to rise, wages, on the other hand, have slowly increased (Reyes, 2025). Considering these factors, most people find it difficult to even consider purchasing a unit. 

As of February 2025, real estate experts estimate that 74,000 condominium units—valued at ₱154 billion—will take approximately 8.2 years or 98.4 months to absorb (Hilotin, 2025). Developers are now forced to reduce prices or offer flexible payment terms to sell their units. Some developers render free services like interior designing or furnishing the units in hopes of making the units more attractive to consumers. Land prices are also projected to drop, with developers losing the motive to purchase and develop these areas following the oversupply and weak demand.

Data slide from Colliers PH presentation

In addition, the exit of Philippine Offshore Gaming Operations (POGO) in the country has left a huge vacancy in the market. As of the first quarter of 2025, these areas continue to show high vacancy rates, with places like the Bay Area increasing from 52% last quarter to 54%. Furthermore, the condominium rental rates have plummeted by 50-60%, according to Leechiu Property Consultants (LPC) CEO David Leechiu. He further claimed that this downward trend will continue mainly in areas like Manila, Quezon City, Pasig, and Paranaque—which account for 57% of unsold ready-for-occupancy (RFO) units (Loyola, 2025). 

Amidst the challenges, Bondoc sees the pivotal role that OFWs could potentially play in curbing the oversupply of units. Collier reported that OFW households allocated 12.7% of their remittances to real estate and property investment, and cash remittances are projected to increase this year by 3% to $39 billion, or roughly ₱2.26 trillion (Hilotin, 2025; Bondoc, 2025). 

The National Capital Region (NCR) has faced challenges in housing, specifically the oversupply of condominium units, driven by high interest rates, shifts in consumer preferences, a mismatch between supply and demand, and the exodus of Philippine Offshore Gaming Operators (POGO) from the country. With the majority of people unable to afford the high prices of these units, the real estate market has significantly slowed, resulting in thousands of unsold units that are expected to take 8 years to absorb. In response, developers have resorted to offering various incentives, such as discounts, to attract buyers. Despite these challenges, experts remain optimistic about the pivotal role of Overseas Filipino Workers (OFWs) in driving economic growth and property investment.