PH property prices post slowest growth since Q1 2019

Residential property prices in the Philippines rose by 1.6 percent year-on-year (y-o-y) in the fourth quarter of 2025, easing from 1.9 percent in the third quarter, marking the slowest pace of increase since the first quarter of 2019, according to the Bangko Sentral ng Pilipinas (BSP).

The BSP’s latest Residential Property Price Index (RPPI) report showed that on a quarter-on-quarter (q-o-q) basis, prices fell by 1.3 percent, although the decline was smaller than the 3.8 percent drop recorded in Q3 2025.

The RPPI measures the average change in prices of various types of housing units over time, calculated using data on actual housing loans from banks, and is among the key indicators the BSP monitors to assess the country’s real estate and credit market conditions.

By location, residential property prices continued to grow faster in the National Capital Region (NCR) than in Areas Outside the NCR (AONCR).

NCR prices rose by 2.3 percent y-o-y in Q4 2025, unchanged from the previous quarter, while AONCR prices increased by only 1.0 percent—the lowest growth on record.

On a q-o-q basis, NCR and AONCR prices declined by 2.0 percent and 0.7 percent, respectively.

Price movements within AONCR were mixed, with Metro Cebu and the Balance Greater Manila Area (GMA) posting faster y-o-y growth of 7.0 percent and 3.5 percent, respectively, compared to Q3 2025.

By contrast, Metro Mindanao shifted to a 1.4 percent decline from an increase in the previous quarter, while prices in Other Areas in the Philippines fell further by 7.0 percent, the steepest contraction since Q1 2019.

By housing type, price trends diverged in Q4 2025.

House prices—covering single-attached or detached units, apartments, townhouses, and duplexes—rose by only 0.1 percent, slowing from 1.9 percent in the previous quarter, the smallest increase since Q1 2019.

By contrast, condominium prices continued to climb at 3.5 percent, accelerating from 1.4 percent in Q3 2025.

On a q-o-q basis, however, both condominium and house prices fell by 1.7 percent and 0.9 percent, respectively.

The median price for all housing types in the Philippines stood at PHP 3,440,423 in Q4 2025, with condominium units at PHP 3,455,020 and houses at PHP 3,329,154.

NCR houses recorded the highest median price at PHP 8,507,150, while houses in Other Areas in the Philippines registered the lowest at PHP 2,337,000.

Growth in residential real estate loans (RRELs) also continued to moderate, signaling softer housing demand.

The number of RRELs granted for all housing types slowed from 24.6 percent y-o-y in Q3 2025 to 4.1 percent in Q4 2025, while q-o-q growth eased from 16.5 percent to 8.4 percent.

The BSP noted that the moderation reflected weaker sentiment among both consumers and lenders, with the Q4 2025 Consumer Expectations Survey showing fewer households viewing the quarter as favorable for home purchases, and the Q4 2025 Senior Bank Loan Officers’ Survey indicating a net tightening of credit standards for housing loans.