WHEN BUYERS WANT OUT

Recently, a friend messaged me about listing a pre-selling lot he bought 2 years ago. His plans changed and now he wants to sell.

I told him he realistically has 3 options:

1. Continue and treat it as a long-term hold

This only makes sense if he can complete the purchase and is willing to wait MANY years.

2. Try to resell now at a loss

A pre-selling resale has to compete with the developer’s own inventory. For his lot to sell, it would need a clear advantage: a meaningful discount, better payment terms, or a better location. It had none.

3. Consider Maceda Law

He may be able to recover part of what he has paid. A 50% recovery would still be painful, but it may be cleaner than continuing a purchase he no longer wants.

If I were in his position, I would study Option 3 because the market now faces risks that didn't feel as urgent before:

a. AI

AI may affect the easiest layers of the BPO sector first: basic calls, data entry, and scripted support. That matters because BPO has been one of the major income engines behind PH real estate demand.

b. RPVARA

RPVARA creates uncertainty around real property taxes. If holding costs rise, more owners of idle or low-yielding assets may decide to sell.

There is also a psychological risk.

If updated valuations start showing lower market values in certain areas, more owners may read that as confirmation that prices are weakening. That could push some of them to sell before the market gets softer.

c. No clear catalyst

Most importantly, I do not see a new catalyst strong enough to absorb all the inventory at today’s prices. Without stronger demand, prices cannot keep rising.

Don't get me wrong, certain prime assets can still hold value. But weak properties, overpriced inventory, and secondary locations are more vulnerable.

And that is the horror story.

This is the same thought process now haunting many pre-selling buyers. Even if they can afford the balance, are they really willing to tie up that much cash?

This is no longer just one buyer asking if he should continue. From my conversations, more and more buyers are already studying Maceda Law.