The Association of Real Estate Brokers of the Philippines (ABREP) has called for a closer examination of reported condominium cancellations in Metro Manila, saying the industry needs more detailed data to determine the actual extent of buyer financing difficulties.
ABREP president Anthony Leuterio questioned the reported 9,000 buyer backouts, urging property consultancy Colliers Philippines to disclose the methodology and transactions behind the figure.
In a report published on Oct. 28, Colliers Philippines Research Director Joey Roi Bondoc as saying that 9,000 condominium purchases in Metro Manila were cancelled during the first nine months of 2026.
Of these, 5,200 involved units still under construction, while 3,800 were ready for occupancy. Pasig recorded the highest number of cancellations, according to Colliers.
Bondoc attributed some cancellations to buyers’ inability to secure bank financing or settle the remaining balances on their units.
He said cancellations commonly occur around the fifth year of payment, when buyers who initially paid relatively low monthly installments through developer financing need to secure bank loans to cover the outstanding balance.
Some developers allow buyers to spread 10% of a condominium’s contract price over five years, resulting in monthly payments of about P10,000 to P12,000.
However, the required payments could increase substantially as units approach turnover.
Leuterio said the public should be given access to the total number of transactions covered by the report, the period examined, and the developers and banks included in the data.
He also called for a distinction between cancellations caused by loan disapprovals and those resulting from other circumstances.
According to Leuterio, financing difficulties may arise from temporary job losses, employment status, documentation requirements and challenges in verifying income earned overseas. Some buyers may still qualify through alternative banks or by submitting updated documents.
The ABREP president, who also founded Filipino Homes, cautioned against treating all cancellations as permanent losses for developers, noting that some units may eventually be sold to other buyers.
He cited an example in which a developer records 200 cancellations but later resells 150 of the affected units. While all 200 cancellations remain part of the transaction history, the number of units left unsold would be different.
Leuterio said industry reports should therefore distinguish between initial cancellations, financing-related cancellations, units subsequently resold and those that remain unsold.
He also urged developers and real estate agents to assess whether buyers received adequate assistance in preparing loan applications and exploring alternative financing arrangements.
He said responsibility for failed transactions should not automatically be placed on buyers, banks or market conditions without examining the circumstances of individual cases.
“If the figure is accurate, let us see the supporting data, the methodology, and the breakdown,” Leuterio said.
He said transparent reporting and evidence-based discussions are necessary to provide the public with accurate information and maintain confidence in the Philippine property market.
📷 Rappler
Comments