Philippine housing prices rise in Q2 – BSP data

By Katherine K. Chan, Reporter

Philippine housing prices increased in the second quarter as consumers were less pessimistic about purchasing residential properties, the Bangko Sentral ng Pilipinas (BSP) reported.

The BSP’s Residential Property Price Index (RPPI) showed housing prices nationwide went up by 7.5% in the April-June period.

However, this was slower than the 7.6% annual growth seen in the first quarter and the 7.9% a year ago. Quarter on quarter, the RPPI rose by 4.2%, outpacing the 2.6% growth in home prices logged in the first quarter.

The RPPI measures the average price changes over time of various residential properties using banks’ data on actual housing loans. The central bank said the data gives insight on the real estate and credit market conditions in the Philippines.

However, home prices in the National Capital Region (NCR) went up by 2.4% in the second quarter, slowing from the 13.9% in the previous quarter and 9.3% last year.

Quarter on quarter, NCR housing prices contracted by 3.6%.

Outside of NCR (AONCR), home prices rose by 11.5% during the April to June period, faster than the 3% in the first quarter and 7.2% a year ago.

Balance Greater Manila Area (GMA) had the highest annual growth in housing prices at 13.2%, followed by Metro Cebu (11.5%), other areas in the Philippines (8.8%), and Metro Mindanao (7.7%).

CONDO PRICES SLUMP
By housing type, condominium unit prices dipped by 0.2% in the second quarter, a reversal from the 11.5% increase in the comparable year-ago period and the 10.6% growth last quarter.

The cost of houses, which include single-attached or detached units, apartments, townhouses and duplexes, rose by 13.1% year on year. This was faster than the 5.4% in 2024 and 4.5% in the first quarter.

Data from the central bank showed the median price for all housing types in the Philippines stood at P3.4 million in the second quarter. Condominium units had a median price of P3.8 million, while houses cost around P3.1 million.

Houses in the NCR were the most expensive at a median price of P7.01 million, while houses in other areas in the Philippines were the cheapest at about P2.7 million.

In the second quarter, residential real estate loans (RREL) granted for all types of housing units in the country grew by 14.7% year on year.

“This uptick aligns with the results of the Q2 2025 Consumer Expectations Survey, which showed a less pessimistic outlook among consumers regarding the purchase of a house and lot,” the central bank said.

“Reflecting this shift in sentiment, a larger share of households considered Q2 2025 as a favorable time to purchase residential property,” it added.

By area, loan availments increased by 10.3% year on year in the NCR and by 16.6% in the AONCR. It was highest in the Balance GMA at 22.5%, followed by Metro Cebu at 18.7%, Metro Mindanao 12.9%, and other areas in the Philippines at 4.3%

The BSP said 74.6% of RRELs availed in the April-June period were for new housing units, while 25% were for pre-owned properties and 0.4% for foreclosed.

Over half or 60.4% of the loans were used for houses, while 39.6% were for condominium units.

Banks approved the most housing loans in Calabarzon (33.2% share) and NCR (28.5%), followed by Central Luzon (11.9%), Central Visayas (8.8%), Western Visayas (6.6%), Davao Region (4.2%) and Northern Mindanao (2.3%).

The BSP first launched the RPPI in the first quarter of 2025 which replaced its predecessor Residential Real Estate Price Index.