"Should I wait for a new tower, or get something I can move into now?" It's one of the most common questions people ask when they start looking, usually right after "Is this area nice to live in?" There's no single right answer, but there is a right answer for you, and it mostly comes down to your timeline. This guide is how I'd talk it through with a friend.
Short answer: choose RFO (ready for occupancy) if you need to move in soon or want to see the exact unit, view and neighbours before you decide. Choose pre-selling if you can wait a few years for turnover, want a wider choice of units and floors, and are willing to check the developer and its License to Sell carefully. Whichever you pick, the checks below protect you.
What pre-selling and RFO actually mean
Pre-selling means a developer offers units before the building is finished, sometimes before the first column goes up. You choose from floor plans, a showroom or a model unit, and you get the keys at turnover, the date the developer hands the unit over to you.
In the Philippines, a developer can't legally sell condo units in a project until it has registered the project and obtained a License to Sell for it.1 Today that license comes from the Department of Human Settlements and Urban Development (DHSUD), which took over the regulatory work of the old HLURB.2
RFO stands for ready for occupancy. The building is done, and you can move in once the paperwork is complete. Under the National Building Code, no building may be used or occupied until the local Building Official issues a Certificate of Occupancy after a final inspection.3 You'll sometimes also hear "nearly RFO," which usually means the tower is close to completion. Ask the developer exactly what that means for the unit you're looking at.
The same logic applies if you're comparing a house and lot: a pre-selling home is chosen from plans and a model house, while an RFO home is one you can walk through today.
Side by side: the real differences
Here's how the two compare on the things that actually affect your life. Notice that price isn't on this list. Costs vary too much by project and change over time, so I always get the current figures from the developer for the specific unit.
- When you move in. RFO: soon after the paperwork. Pre-selling: at turnover, which can be a few years away.
- What you can see before deciding. RFO: the actual unit, its real view, the hallway noise, the working amenities. Pre-selling: plans, a showroom or model unit, and the site.
- Choice of unit. Pre-selling usually has the widest pick of floors, layouts and facings, because nothing is taken yet. In an RFO building, you choose from what's left.
- Certainty. RFO: what you see is what you get. Pre-selling: you're relying on the developer to build what was approved, on time.
- The building's track record. RFO: you can ask how the building is run today, including management, dues and repairs. Pre-selling: you judge the developer by its finished projects instead.
- Time to plan. Pre-selling gives you time before move-in to plan furniture, schools or a move from abroad. RFO puts those decisions right in front of you.
3 questions that decide it
When someone is torn, I skip the sales talk and ask these three things.
1. When do you actually need to live there?
If the answer is "this year" (a new job, a growing family, a lease that's ending), RFO is the honest fit. A pre-selling turnover date is a plan, not a promise you can move in on next month. If you're happy where you are for a few more years, pre-selling opens up.
2. Do you need to see it to believe it?
Some people are fine choosing from a floor plan and a model unit. Others need to stand at the actual window at 5 PM and hear the street. Neither is wrong. If you're the second type, RFO will save you a lot of second-guessing, or at least visit the site and walk the block before you choose a pre-selling unit.
3. How much uncertainty can your plans absorb?
Construction schedules can move. If a delay of some months would seriously disrupt your life, for example if you're timing a move home from abroad around it, give that real weight. If your plans have room to flex, the waiting is easier to live with.
Watch the 30-second version
The same 3 questions in one short reel. Send it to whoever you're deciding with.
Already reserved a pre-selling unit? See what comes next (YouTube Short).
If you're leaning pre-selling: what to check
- The License to Sell, for this specific project. Not the developer in general and not a sister tower. Ask for the license number and verify it with DHSUD.1,4
- The turnover date, in writing. A verbal "around two years" isn't enough. The law requires developers to complete what was approved within the time set in the project's license.1
- The developer's finished projects. Visit one or two. Were they delivered as shown? How do they look and run years later? This tells you more than any brochure.
- What's in the unit at turnover. Bare or fitted? Which finishes, fixtures and appliances? Get the specifications in writing so turnover day has no surprises.
- The site and its surroundings. What's planned next door? A clear view today can change when a neighbouring lot is built on.
- Your protections if things go wrong. PD 957 says that if a developer fails to develop the project according to the approved plans and within the time limit, what you've paid isn't simply forfeited, and you have options.1 Read your contract with this in mind, and get legal advice for anything unclear.
If you're leaning RFO: what to check
- The Certificate of Occupancy. The building should have one before anyone moves in.3
- The exact unit, not the model. Open taps, flush, check the windows' seals, look for water stains on the ceiling, and test the outlets. My 8 questions for any building work here too.
- How the building is run. Who manages it, how fast are repairs handled, and what do the association dues cover? Ask for it in writing.
- Visit at two different times. Morning rush and evening tell you very different things about noise, elevators and parking.
- The street and building, in person. Walk the block, the lobby and the parking with me on a visit, so you see how it lives day to day.
- Title and turnover status. Ask what stage the unit's title and turnover documents are at, and what happens next.
Want to compare both in person?
Book a showroom visit and I'll walk you through a finished building and a pre-selling showroom so you can feel the difference, or start with a Zoom call if you're abroad. I'll confirm current availability with the developer for you. Honest answers, at your pace.
"Is pre-selling a good investment?"
It's one of the most searched questions about this topic, so here's my honest take. Pre-selling can work well as an investment, but nothing about it guarantees a gain. What decides it is the same as for any property: the location, the developer's record of delivering, whether the project is finished on time, and how long you can comfortably hold it.
Be careful with anyone who promises a specific return or tells you a unit "will surely go up." I won't, because nobody can know that. A better test is simple: would you, or a future tenant, genuinely want to live in this unit, in this exact spot? If yes, you're on solid ground whichever route you take. If you're thinking of renting it out, ask the building's house rules on leasing before you commit.
New to all of this? Start with my honest guide to living in Ortigas Center to get a feel for the area's four pockets first, then come back to this decision.
FAQ
What does RFO mean for a condo?
RFO stands for ready for occupancy. The building is finished and you can move in once the paperwork is done. In the Philippines, a building can only be occupied after the local Building Official issues a Certificate of Occupancy under the National Building Code (PD 1096).
What does pre-selling mean for a condo?
A pre-selling condo is offered before the building is finished, sometimes before construction starts. You choose a unit from plans, a showroom or a model unit and move in at turnover, which can be a few years away. The developer must hold a DHSUD License to Sell for that specific project before it may sell units.
What is the difference between RFO and pre-selling?
Timing and certainty. RFO means you can see the exact unit, view and building today and move in soon. Pre-selling means you choose earlier, usually with a wider pick of units and floors, but you wait for turnover and rely on the developer to deliver what was approved.
Is a pre-selling condo a good investment in the Philippines?
It can be, but nothing about pre-selling guarantees a gain. Whether it works depends on the location, the developer's track record, whether the project is delivered on time and your own timeline. Be wary of anyone who promises returns, and decide based on where you or a future tenant would actually want to live.
Which is better, RFO or pre-selling?
Neither is better for everyone. RFO usually fits people who need a home soon or want to see exactly what they get. Pre-selling usually fits people who can wait, want more choice of unit and floor, and are comfortable checking the developer carefully first.
What happens if a pre-selling project is delayed?
PD 957 requires developers to finish what was approved within the time set in the project's license, and Section 23 protects what you have paid if a developer fails to develop according to the approved plans and time limit. If you face a delay, get the turnover date in writing, keep your documents and ask DHSUD about your options. This is general information, not legal advice.
This is part of my City Notes, plain-language guides to the area and to how owning a condo works here. Also read: buying a condo from abroad and living in Ortigas Center. New guides go up every Tuesday and Friday. See all guides or follow @daryl.calidadrealty so you catch the next one.
Last updated: October 28, 2026. Changes since the last update: added the YouTube version of the reel and links to the newer guides.
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Free printable for this guide: Pre-selling vs RFO checklist (2 pages) →
Sources
- Presidential Decree No. 957 (1976), Sections 4, 5, 20 and 23, via The LawPhil Project.
- Republic Act No. 11201 (2019), creating the Department of Human Settlements and Urban Development, via The LawPhil Project.
- Presidential Decree No. 1096, National Building Code of the Philippines, Section 309 (Certificate of Occupancy), DPWH.
- Department of Human Settlements and Urban Development, dhsud.gov.ph.