Philippine home price growth slowest on record in Q2

Residential property prices in the Philippines barely increased in the second quarter of 2026, posting the slowest annual growth since the Bangko Sentral ng Pilipinas’ current housing price series began in the first quarter of 2019.

The nationwide slowdown was driven by falling residential property prices in areas outside the National Capital Region, or AONCR, which offset continued price increases in NCR.

The divergence matters for households, developers and banks because weaker prices and lending outside Metro Manila could signal softer demand in regional housing markets, even as condominium activity remains relatively resilient in major urban centers.

For prospective buyers, slower or falling property prices could temper some acquisition costs, but the BSP data also show weaker housing credit outside NCR, meaning price moderation does not necessarily translate into easier access to home financing.

AONCR recorded its first year-over-year decline in residential property prices during the quarter, with weakness spread across several parts of the region.

The category classified as Other Areas in the Philippines registered the steepest contraction.

Other Areas in the Philippines covers locations outside NCR, the Balance Greater Manila Area, Metro Cebu and Metro Mindanao.

The Balance GMA, meanwhile, posted its first year-over-year decline in residential property prices.

Balance GMA covers Batangas, Bulacan, Cavite, Laguna, Pampanga and Rizal, provinces that have absorbed significant residential and industrial expansion around Metro Manila.

The second-quarter performance marked a sharp reversal from a year earlier, when nationwide residential property prices rose 7.5 percent year over year in the second quarter of 2025.

AONCR had led the market in the second quarter of 2025 with an 11.5 percent annual increase, while NCR prices rose 2.4 percent.

Property movements in the latest quarter also differed according to housing type.

Condominium prices continued to increase, while prices of houses declined.

The BSP classifies houses as single houses, townhouses, duplexes and apartments.

Residential real estate lending showed a similar geographical divide.

Housing loan growth remained robust in NCR but contracted slightly in AONCR.

Within AONCR, Balance GMA was the only area to record moderate year-over-year growth in residential real estate lending.

Loans for condominium units remained strong, particularly in key urban centers.

Loans for houses, however, declined as lending activity weakened across AONCR.

The contrast between condominiums and houses suggests that housing market conditions are becoming increasingly uneven, with demand and credit remaining concentrated in particular property types and urban locations rather than strengthening broadly across the country.

The BSP uses the Residential Property Price Index, or RPPI, to measure changes in residential property prices nationwide based on actual housing loans reported by banks.

The index uses a hedonic regression approach, which adjusts for differences in property characteristics such as location and floor area so movements in the index better reflect changes in prices rather than changes in the types of homes being financed.

The RPPI covers new, pre-owned and foreclosed residential properties financed through participating banks and uses acquisition costs rather than appraisal values.

Beginning in the first quarter of 2025, the BSP adopted the RPPI as its official residential property price measure and discontinued publication of the older Residential Real Estate Price Index.

The central bank monitors the RPPI alongside housing credit and other indicators to assess conditions and potential risks in the country’s property and financial markets.