Housing problem

In a developing economy like ours with limited capital resources, the government and the private sector should be coordinating investments to produce the biggest return for the country and the economy. Investments must produce the greatest social benefits, not just private profits.

- BOO CHANCO

Our property sector is a good example of too much laissez faire allowing our shortsighted elite to aim for short-term gains regardless of what society and the economy needs.

The luxury segment of the market was patronized by the ultra-rich who needed to park their excess money somewhere. The corrupt politicians, DPWH engineers and their favorite contractors also parked their loot in high-end condos.

But there is a lack of affordability of condo units supposedly directed at the middle market. That's because Metro Manila condominium prices rose by nearly 300 percent (specifically 296 percent-303 percent) between 2015 and 2024, while average family incomes increased by only about 21 percent.

This widening gap led to a significant affordability crisis, resulting in over 70,000-80,000 unsold or vacant condo units as of 2024-2025.

The excess inventory is largely inaccessible for average Filipino households. Property developers are hoping they can clear their inventory over the next three years or more.

A post on Facebook by Pinas Pulse points out a paradox: a high demand for housing but thousands of empty units. These ghost towers are a sign of serious misallocation of land, capital and infrastructure, an outright waste our economy cannot afford.

As Pinas Pulse puts it, “while entire floors sit dark at night, informal settlers remain in danger-prone areas; renters face constant price increases; young professionals are locked into permanent renting and families are pushed farther away from jobs and schools.”