What does pre-selling mean for condos in Manila?

Pre-selling refers to purchasing a condo unit before or during its construction phase. You buy at a lower price than the completed unit (RFO), with the balance typically financed through a bank loan at turnover.

Who should buy pre-selling condos in Manila?

Pre-selling is ideal for investors with 2–5 year time horizons, buyers who want lower entry prices, and those who want to choose premium floors and views before the building fills up.

What is the difference between pre-selling and ready for occupancy (RFO)?

Pre-selling units are purchased before construction completes — cheaper but requires waiting. RFO units are immediately habitable and cost 15–30% more but have no construction risk.

How much cheaper are pre-selling condos vs RFO in Manila?

Pre-selling units are typically 15–30% cheaper than RFO equivalents at the time of purchase. By turnover, the gap often closes as the property appreciates to market value.

Can foreigners buy pre-selling condos in the Philippines?

Yes. Foreigners can buy pre-selling condos as long as the building's total foreign ownership does not exceed 40% of all units. Engage a real estate lawyer for proper documentation.

What is a Contract to Sell (CTS) in pre-selling condos?

The Contract to Sell is the main document binding both buyer and developer. It outlines the payment schedule, turnover date, unit specifications, and penalties for delays or non-payment.

What is a Condominium Certificate of Title (CCT)?

The CCT is the official proof of ownership issued by the Registry of Deeds after full payment and title transfer. You typically receive it 30–90 days after unit turnover.

Can I sell a pre-selling condo before turnover (pre-selling flip)?

Yes, this is called assignment of rights. You can sell your pre-selling unit before turnover, though some developers charge an assignment fee. Check your CTS for terms.

What is a HLURB license and why does it matter?

HLURB (Housing and Land Use Regulatory Board) issues a License to Sell to developers. Always verify this license before buying any pre-selling unit — it protects you legally.

Is pre-selling safer than buying land in the Philippines?

For foreigners, pre-selling condos are safer because foreigners cannot own land but can own up to 40% of a condominium building's units with full legal protection.

How does the payment schedule work for pre-selling condos?

Typical structure: Reservation fee (Day 1) → Down payment in monthly installments (12–48 months, usually 10–20%) → Balance via bank loan or in-house financing at turnover.

How much is the reservation fee for pre-selling condos in Manila?

Reservation fees range from ₱20,000–₱100,000 depending on the developer and property tier. This is fully credited towards the purchase price.

What is the typical down payment for pre-selling condos?

Down payments are typically 10–20% of the total contract price, spread in equal monthly payments over 12–48 months during the construction period.

Is the monthly down payment installment interest-free?

In most developer programs, the monthly down payment installments during the construction period are interest-free. Confirm this in your payment schedule before signing.

What financing options are available for the balance at turnover?

Options include: commercial bank loans (BDO, BPI, Metrobank — 5–20 year terms at 5–8% p.a.), Pag-IBIG Fund, or developer in-house financing (higher rates but more flexible).

Can I get a bank pre-approval for the balance loan while the condo is being built?

Banks typically process formal loan applications only 3–12 months before turnover. However, you can get indicative pre-approval earlier to check your eligibility.

What are the additional costs when buying a pre-selling condo?

Additional costs include transfer taxes (1.5%), documentary stamp tax (1.5%), registration fees (0.25%), CGT (6% if reselling), and initial association dues.

Can I negotiate the price on a pre-selling condo?

Yes — especially early buyers (pre-launch) often get discounts of 5–15%. Full cash buyers can negotiate stronger discounts. Timing matters: launch pricing is always the lowest.

What happens to my payments if I cancel my pre-selling purchase?

Cancellation policies vary by developer. Most retain reservation fees and a portion of paid installments. The Maceda Law protects buyers who have paid 2+ years of installments.

What is the Maceda Law and how does it protect pre-selling buyers?

Republic Act 6552 (Maceda Law) protects buyers who have paid installments for 2+ years. If you cancel, you are entitled to refund of 50% of total payments (increasing 5% per additional year).

Which developers are most reliable for pre-selling condos in Manila?

Top developers with strong delivery records: Ayala Land (near 100% on-time), DMCI Homes (very consistent), Rockwell Land (premium, reliable), and Megaworld (solid township track record).

How do I verify if a developer is HLURB accredited?

Visit the HLURB website or office to verify a developer's License to Sell. You can check by developer name or project name. Never buy without confirming this license.

What should I check about a developer before buying pre-selling?

Check: HLURB license, SEC registration, existing completed projects' quality, delivery track record, financial stability (SEC filings), and review sites from past buyers.

Is SMDC a good developer for investment in Manila?

SMDC is one of the most popular mid-market developers. Their units near SM Malls have strong rental demand. Quality is consistent though not as premium as Ayala Land.

How does Ayala Land compare to Megaworld for pre-selling investment?

Ayala Land offers more premium locations (BGC, Makati CBD) with higher capital appreciation. Megaworld provides better affordability and strong rental demand from BPO workers in townships.

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Complete Buyer's Guide

Pre-Selling Condo
Manila Guide

Buy at 15–30% below market price. Complete guide to pre-selling condos in BGC, Makati & Ortigas — payment terms, top developers, risks, and 50 expert FAQs.

15–30%

Price Advantage

Below RFO at launch

10–20%

Down Payment

Spread over construction

2–5 yrs

Construction Wait

Typical timeline

15–30%

Appreciation

By turnover day

FAQs Answered

Complete pre-sell Q&A

What is Pre-Selling in the Philippines?

Understanding the concept, its advantages, and who it's ideal for

Pre-selling condos are sold before or during construction at prices 15–30% below the eventual ready-for-occupancy value. Buyers commit early and spread their down payment over the construction period, then settle the balance via bank loan at turnover.

Manila's real estate market has rewarded pre-selling buyers consistently. Properties in BGC and Makati that launched at ₱5–7M in the early 2010s now trade at ₱12–20M+, delivering substantial capital gains for early investors.

Pre-Selling Advantages

+15–30% lower price at launch
+Flexible DP spread over 2–4 years
+First pick of floors and views
+Capital appreciation by turnover

Considerations

!2–5 year wait before occupancy
!Construction risk with some developers
!No rental income during construction
!Bank financing at turnover not guaranteed

Why Buy Pre-Selling in Manila

Four key advantages over ready-for-occupancy units

Lower Entry Price

Pre-selling units are typically 15–30% cheaper than ready-for-occupancy equivalents, giving early buyers a significant price advantage.

Flexible Payment Terms

Spread your down payment over 12–48 months during construction. This makes premium properties accessible with lower upfront capital.

First Choice of Units

Buy early and select the best floors, views, and unit layouts before they are taken. Corner units and high floors go first.

Capital Appreciation

Properties typically appreciate 15–30% from pre-selling launch to turnover. Buy at pre-launch price, sell or rent at market rate at turnover.

How the Payment Schedule Works

4 phases from reservation to key handover

Phase 1Reservation

₱20,000 – ₱100,000

Day 1

Secures your chosen unit. Fully credited to the purchase price. Reserves your right to buy at the pre-selling price.

Phase 2Down Payment (DP)

10–20% of price

12–48 months

Paid in equal monthly installments during the construction period. No interest applies during this phase with most developers.

Phase 3Balance Payment

80–90% of price

At turnover

Paid via bank loan (PAG-IBIG or commercial bank) or in-house financing at unit handover. Get pre-approved 6 months before turnover.

Phase 4Unit Turnover

Keys handed over

2–5 years later

After full payment and completion of all documents. You receive the Condominium Certificate of Title (CCT) within 30–90 days.

Best Pre-Selling Areas in Manila

5 prime locations compared by price and investment potential

BGC

Studio to 3BR

From ₱6M

High — fastest appreciation

Makati

Studio to 2BR

From ₱7M

High — stable demand

Ortigas

Studio to 2BR

From ₱3.5M

Moderate — budget-friendly

Pasay (Bay Area)

Studio to 2BR

From ₱3M

Growing — mall proximity

Vertis North (QC)

Studio to 3BR

From ₱4M

Emerging — undervalued

Top Pre-Selling Developers in Manila

Four trusted developers with proven delivery track records

Ayala Land

Premium

BGC · Makati · Alabang

Excellent — near 100% on-time

₱8M – ₱40M+

Quality finishes, premium locations, strong resale value

SMDC (SM Development)

Mid-Market

Pasay · QC · Las Piñas · Pasig

Good — minor delays possible

₱2.5M – ₱12M

Affordable pricing, SM Mall proximity, high rental demand

DMCI Homes

Mid-Market

Quezon City · Manila · Makati

Very Good — consistent track record

₱3M – ₱15M

Resort-themed amenities, lush landscaping, good value

Megaworld

Premium

BGC (McKinley Hill) · Eastwood · Lucky Chinatown

Good — township track record solid

₱5M – ₱25M

Township model, integrated living, BPO tenant demand

Risks & How to Mitigate Them

5 common pre-selling risks and expert protection strategies

Construction Delays

Choose developers with 95%+ on-time delivery rate. Ayala Land and DMCI have strong track records.

Developer Insolvency

Verify developer's HLURB license, SEC filings, and credit ratings. Avoid unknown developers offering steep discounts.

Contract Changes

Have a real estate lawyer review the Contract to Sell (CTS). Watch for clauses allowing design modifications.

Financing at Turnover

Get bank pre-approval 6–12 months before estimated turnover. Don't assume you'll automatically qualify later.

Substandard Quality

Visit completed projects by the same developer. Check structural quality and finishing of existing buildings.

Golden Rule: The best risk mitigation is choosing a reputable developer. Ayala Land and DMCI Homes have delivered thousands of units with minimal issues. Never chase steep discounts from unknown developers — the savings are rarely worth the risk.

Frequently Asked Questions

50 expert answers in 5 categories

50 questions

Is Pre-Selling Right for You?

Final verdict on Manila pre-selling condos

Pre-selling condos in Manila offer one of the most attractive entry points in Philippine real estate. The combination of lower price, flexible payments, and appreciation potential makes them ideal for investors with a 3–5 year horizon.

The key to success: choose reputable developers, get pre-approved for financing well before turnover, and factor in the full construction timeline into your investment plan. Pre-selling isn't for buyers who need immediate occupancy — that's where RFO units shine.

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Contents

Pre-Selling Snapshot

vs RFO Discount15–30%

Down Payment10–20%

DP Term12–48 months

Construction Wait2–5 years

Typical Appreciation15–30%

Foreign OwnershipUp to 40%

Related Guides

RFO Guide

Ready for Occupancy Condo Manila