MANILA — The government is preparing a new housing financing scheme that could allow private developers to sell thousands of unsold condominium units through Pag-IBIG Fund, as authorities move to address the growing property inventory in Metro Manila.
Under the planned modality of the expanded Pambansang Pabahay para sa Pilipino (4PH) program, condominium units priced at ₱3 million and below could become eligible for Pag-IBIG financing. The initiative is designed to give Filipino homebuyers access to lower-priced units in prime locations while helping developers reduce their existing inventory.
Department of Human Settlements and Urban Development Secretary Jose Ramon Aliling said the program would allow private developers to offer existing units at lower prices while giving qualified buyers access to Pag-IBIG’s lower-interest housing loans.
The proposal comes as Metro Manila continues to face a substantial condominium oversupply. Colliers Philippines data cited by the DHSUD showed about 80,000 unsold condominium units in the capital region during the second quarter, including approximately 32,600 units that were already ready for occupancy.
Developers have consequently been focusing more heavily on selling existing inventory rather than launching new projects. Only about 1,200 condominium units were launched during the second quarter, bringing first-half launches to roughly 2,600 units, a 64% decline from the same period a year earlier.
Demand has also weakened. Net condominium take-up fell 60% quarter-on-quarter to around 500 units in the second quarter, according to the figures cited by BusinessMirror.
The proposed Pag-IBIG mechanism is intended to connect that excess inventory with buyers who may otherwise struggle to afford housing in major urban areas.
Participating developers could also use qualified units toward their compliance with the country’s balanced housing requirement, providing another incentive to join the program.
The proposal was discussed during a recent meeting of the Private Sector Advisory Council’s Infrastructure Sector Group–Real Estate, attended by President Ferdinand Marcos Jr., government officials and representatives from major property companies including Ayala Land, Robinsons Land and SM Prime Holdings.
According to the DHSUD, major developers expressed willingness to reduce the selling prices of some units so they could participate in the program.
The formal guidelines for the new financing modality have yet to be released by the DHSUD and Pag-IBIG Fund.
The initiative represents an attempt to tackle two issues at the same time: a large stock of unsold urban condominium units and the continuing need for more affordable housing options.
If implemented as planned, the program could reshape how developers market existing inventory while giving qualified Filipino buyers another pathway to homeownership.
The bigger question is how many developers will actually cut prices enough to qualify — and whether lower-cost Pag-IBIG financing will be enough to turn the country’s condominium oversupply into stronger housing demand.
