WORSE THAN THE ASIAN FINANCIAL CRISIS?

I was speaking with a broker who’s been in the industry since the mid-90s.

He told me: “What we’re going through now feels worse than the Asian Financial Crisis.”

That’s a strong statement. But is it actually true?

Disclaimer: What I know about the Asian Financial Crisis (AFC) is secondhand—based on research, industry stories, and conversations with veterans. So if you lived through the AFC and see gaps here, feel free to jump in.

What the AFC actually looked like

+ Office landlords were offering rent-free periods just to get tenants

+ An ultra high-end development reportedly struggled to complete and needed rescue funding from its parent

+ JAKA Tower stalled and sat idle for over a decade

+ Fil-Estate collapsed, a major developer at the time

+ Secondary market prices dropped ~20–30% in certain segments

+ Control of BGC shifted to Ayala after Metro Pacific ran into trouble

This was a liquidity crisis. Developers, banks, and buyers were all under pressure at the same time.

So… is today as bad as the AFC?

Not even close.

Today, we’re dealing with a slowdown, not a system-wide breakdown.

If anything, the problem today is the opposite: too much price resistance, NOT enough panic.

Then why does it feel worse to some brokers? This is where it gets interesting.

1. Recency bias

The last 10+ years were a bull run. When you’ve been operating in that kind of environment, even a normal slowdown feels like a collapse. It’s the contrast.

2. No capitulation = no transactions

Post-AFC, prices were falling hard. That sounds bad—but it created movement: Sellers accepted losses-Buyers stepped in-Deals closed.

Today:

Sellers won’t lower prices

Buyers are waiting for distressed sales

Both sides are frozen

Result = Low liquidity

Ironically, a falling market can transact more than a flat, stubborn one.

3. This cycle is psychologically harder

During the AFC, the problem was obvious: crisis.

Today, it’s more subtle: Just… silence.

And for brokers, silence is deadly.

Bottom line

To a veteran broker who thrived in a booming market, this might feel worse.

But it’s not worse. It’s just different...and in some ways, even more difficult to navigate.