The Philippine real estate market is grappling with a persistent mismatch between available properties and actual buyer needs, according to Anthony Leuterio, founder of property brokerage Filipino Homes.
Leuterio said many developers have produced high-cost units in locations that do not align with the financial capacity or preferences of potential buyers, particularly in Metro Manila, leading to an oversupply of unsuitable inventory.
“The market is huge in real estate, but what’s on offer often doesn’t match what people really want,” he said.
A key factor driving the imbalance, Leuterio noted, is the industry’s reliance on skewed data and internal market studies.
Developers often focus on their own targets and price structures without conducting broader research into the capacity and needs of homebuyers.
“Studies are centered on the developers, not on the actual demand,” he said.
Leuterio urged developers to rethink their strategies by prioritizing market research and engaging marketing professionals, instead of relying solely on internal studies.
He added that developers should focus on understanding the financial capacity of buyers, rather than funding expensive projects that require high recovery costs.
The Philippine real estate market holds immense potential, but addressing the mismatch between developer offerings and buyer needs is crucial for sustainable growth.
By prioritizing accurate market research and adapting to the unmet demands of buyers, developers can bridge the gap and unlock opportunities in this thriving sector.
Leuterio’s insights serve as a wake-up call for the industry to take a more customer-centric approach and ensure that real estate developments align with market realities.
Business News Asia