Proposed condo law seen to unlock value in aging developments

By Beatriz Marie D. Cruz, Reporter

THE proposed Condominium Redevelopment Act is expected to support residential demand in Metro Manila by providing clearer rules for the maintenance and redevelopment of aging condominium projects, analysts said.

“The proposed law reduces risk for buyers and investors in older but well-located projects, supports demand in mature central business districts (CBDs), and enables long-term urban renewal through higher-quality, more market-relevant developments,” Joe Curran, chief executive officer of Savills Philippines, said in an e-mailed reply to questions.

House Bill (HB) No. 2286, or the proposed Condominium Redevelopment Act, seeks to establish clearer guidelines for the proper maintenance, repair, reconstruction, and redevelopment of condominium projects.

The measure proposes lowering the voting requirement for the dissolution of a condominium corporation from 100% to two-thirds of stockholders or members for projects that are 30 to 50 years old, and from 100% to a simple majority for projects that are 50 years old or more.

It also aims to ensure that the “property rights of unit owners are respected, while addressing the needs of the community and improving the overall quality of life of Filipinos,” according to a copy of the bill.

If enacted, the law would make the redevelopment of aging condominium projects more feasible by easing owner consent requirements and clarifying redevelopment rules, Mr. Curran said.

The proposed law would also allow developers to better realign existing assets with current market demand, according to Leechiu Property Consultants (LPC).

“Reducing the voting thresholds for the dissolution of a condominium corporation allows the resultant landowners the ability to construct a new building with higher floor area ratio densities, replacing obsolete, and inefficient properties in prime locations,” Roy Amado L. Golez, Jr., LPC director for research, consultancy, and valuation, said in an e-mail.

“These will be redeveloped into new projects that meet current market needs — creating renewed supply in CBDs where developable land is scarce,” he added, noting that this could help revitalize older neighborhoods such as Legaspi and Salcedo Villages in Makati City.

HB 2286 also allows developers and their agents to enter condominium units during emergency situations that pose a danger to life or property.

The House of Representatives approved HB 2286 on third and final reading in November last year, while counterpart bills in the Senate remain pending at the committee level.

Metro Manila has a total of 775,400 condominium units, with 80,300 units unsold as of end-November 2025, based on LPC data.