PHILIPPINES — Anthony Leuterio, president of the Association of Real Estate Brokers of the Philippines (ABREP), has called for a rigorous, data-driven examination of the reported cancellation of 9,000 condominium purchases in Metro Manila, emphasizing the need for transparency over how such figures are compiled.
Challenging Broad Interpretations of Market Withdrawals
The discussion centers around a recent report citing data from Colliers Philippines, which noted that 9,000 condominium purchases in Metro Manila were cancelled in the first nine months of the year, including 5,200 units under construction and 3,800 ready-for-occupancy units, with Pasig recording the highest concentration. The report attributed many of these withdrawals to buyers facing difficulties securing bank financing or clearing outstanding balances as units neared turnover.
Leuterio firmly asserted that figures of this magnitude require comprehensive context, including clear methodologies, transaction coverage, and detailed breakdowns to accurately reflect the true state of the property sector. He noted that sweeping figures without sufficient granularity risk creating unneeded speculation about the real estate landscape.
He stressed that financial hurdles emerging around the milestone of bank loan approvals—often occurring after years of low introductory equity installments—do not automatically signal that buyers are permanently priced out or incapable of fulfilling obligations.
Distinguishing Between Initial Cancellations and Actual Unsold Inventory
According to Leuterio, market assessments must clearly differentiate among initial transaction cancellations, financing-related withdrawals, units that are subsequently resold, and properties that remain genuinely unsold. Equating initial contract cancellations directly with permanent losses for developers misrepresents actual ground realities.
For instance, a developer that records a specific number of initial cancellations may subsequently manage to resell a significant portion of those affected units. While the withdrawals remain part of historical transaction records, their net impact on active inventory is materially different. Ignoring these distinctions can heavily distort market perceptions.
Furthermore, Leuterio pointed out that temporary roadblocks—such as shifting employment arrangements, documentation hurdles, or difficulties verifying income streams—frequently impact loan applications. Many buyers whose initial applications face delays can still successfully secure financing through alternative financial institutions or updated documentation.
A Call for Empirical Accuracy and Buyer Support
To maintain robust confidence in the Philippine property sector, Leuterio urged industry stakeholders, developers, and brokers to ensure transparent, evidence-based reporting. He also highlighted the responsibility of professionals in guiding clients through mortgage applications and alternative financing pathways before deals fall through.
Responsibility for transaction cancellations should not be blanketly assigned to buyers or broader market distress without examining individual circumstances. Professional management and proactive engagement remain essential in protecting asset value and upholding stability across the real estate industry.
Ultimately, Leuterio’s stance underscores that navigating market corrections requires empirical clarity rather than broad generalizations. Transparent data and thorough transaction analysis remain vital tools for investors, developers, and property professionals alike.
