Preselling vs Ready-for-Occupancy: Which to Buy?

Most premium Philippine condos sell in two phases: preselling and ready-for-occupancy (RFO). Both come from the same developer, in the same building — but they're different products from a buyer's perspective.

Preselling

You buy before construction is complete (or sometimes before construction even starts). Pricing reflects this risk discount: typically 20–40% below the same unit's eventual RFO price. The developer provides equal-installment down payment plans during construction (often 24–60 months at 0% interest), and the bank-loan phase only kicks in at turnover. You hold the appreciation between reservation and turnover.

Trade-offs of preselling

You can't see the actual unit. The hand-over date can slip 6–12 months on rare occasions. You pay during construction without enjoying the unit. Resale before turnover is possible but limited.

Ready-for-occupancy (RFO)

The unit exists, you can inspect it, you can move in within weeks of contract closing. Pricing is at the current market level — no preselling discount. You pay reservation, complete the down payment quickly (often 12 months or less), and immediately apply for bank/Pag-IBIG loan. Resale value is whatever today's market says.

Trade-offs of RFO

No appreciation runway. Higher cash needs faster (DP usually compressed). Less unit selection per project (popular units sell out during preselling).

A simple decision rule

- Need to move in within 6 months? Buy RFO. - Investing for appreciation, can wait 3-5 years for turnover? Buy preselling — you get the discount AND the appreciation. - Mid-priority — moving in within 1-2 years acceptable? Look for late-stage preselling (close to turnover) or early RFO. The window between preselling-tail and RFO often has the best risk-adjusted price.

Practical tip

Alveo Land's master-planned estates appreciate fastest in the first 5 years after launch (when the estate's amenities, retail, and offices come online). Buying preselling at year 1 and holding to year 5 has historically been the highest-return Alveo strategy. Send me a message to discuss specific projects in this sweet spot.