ONLY 87 UNITS

Only 87 Units.

That’s the net sales take-up reported for Metro Manila's condominium market in Q1 2025—yes, just 87 units, according to Colliers Philippines.

But before jumping to conclusions, let’s unpack what this number actually means.

Understanding “Sales Take-Up”

In real estate, "sales take-up" refers to the number of condominium units that buyers have committed to by signing Contracts to Sell with developers. Some developers refer to this as “Reservation Sales.” However, it’s crucial to note: this isn’t the same as a completed sale.

At this stage, buyers are essentially paying for the right to a future unit. The actual turnover of the unit—when it’s built and delivered—hasn’t happened yet. As such, these transactions don’t count as “sales” in the traditional accounting sense. They are promises, not yet fulfilled.

And as with any promise, there’s room for change. Buyers can, and often do, back out.

Which brings us to net sales take-up—the more telling metric.

Net Sales Take-Up = Gross Sales Take-Up – Back-Outs

For the first quarter of 2025, Colliers reported 4,835 units were taken up. However, contracts for 4,748 other units were canceled—buyers changed their minds.

That leaves just 87 net units. For context, Colliers estimated roughly 9,000 units were taken up for the whole of 2024. Dividing that by four gives us an average of 2,250 units per quarter.

By that measure, net sales take-up dropped by an alarming 96% compared to the quarterly average from the previous year.

What’s Driving the Drop?

The wave of cancellations came mostly from the mid-market segment—units priced between Php 3 million and Php 11 million—accounting for 66% of all back-outs.

Interestingly, the Ultra Luxury and Upper Luxury segments saw zero cancellations. This divergence hints at a growing divide in market resilience across price brackets.

In a market driven by sentiment and liquidity, Q1 2025’s numbers may be signaling deeper shifts in buyer behavior—and in developer strategy.