Philippine Home Prices Surge in Q4 2024

Residential property prices in the Philippines rose 6.7 percent year-over-year in the fourth quarter of 2024, reversing a 2.3 percent decline in the previous quarter, according to data released Friday by the Bangko Sentral ng Pilipinas (BSP).

Quarter-on-quarter, prices also jumped 5.3 percent, supported by strong gains in single-detached and condominium units nationwide. This marked the highest quarter-on-quarter increase since early 2021, reflecting renewed momentum in the housing market.

Outside Metro Manila, prices surged 9.3 percent year-over-year, largely driven by double-digit increases in single-detached and condominium units. Townhouses were the only segment to decline, falling 3.4 percent nationwide.

Prices in the National Capital Region (NCR) dipped marginally by 0.4 percent year-over-year but climbed 5.7 percent from the previous quarter. The annual decline was primarily due to falling townhouse prices, which offset gains in other segments.

Single-detached homes led nationwide gains with a 12.8 percent year-over-year increase, followed by condominiums at 5.1 percent. Duplex housing units registered the highest growth, but due to their low volume—only 0.48 percent of all new units sold—they were excluded from major index analyses.

Loan data showed continued contraction in the number of residential real estate loans (RRELs) for new housing, down 10.8 percent year-over-year. However, quarter-on-quarter, loan availments rebounded strongly with a 34.3 percent jump nationwide, including 42.7 percent in the NCR and 29.8 percent in areas outside it.

“The rebound in housing loan availments in the fourth quarter reflects a seasonal recovery and unchanged credit standards, as seen in the Senior Bank Loan Officers’ Survey,” the BSP said in its quarterly report.

Loans for new single-detached homes plunged 36.2 percent year-over-year nationwide. NCR loans in this category fell 60.8 percent—marking the steepest drop since the second quarter of 2020—though they improved 8.7 percent from the previous quarter.

In contrast, loans for new condominium units increased 7.5 percent year-over-year, buoyed by a 23.9 percent rise in regions outside Metro Manila. Quarter-on-quarter, condominium loan availments soared 74.4 percent nationwide.

The average appraised value of new residential units rose to PHP104,369 per square meter, up 17.2 percent year-over-year and 20.8 percent quarter-on-quarter. In Metro Manila, values reached PHP143,059 per sqm, while in the rest of the country, values hit PHP81,983 per sqm—narrowing the valuation gap between urban and rural areas.

The Residential Real Estate Price Index (RREPI) is a key indicator used to assess trends in property values and credit market conditions. It is based on mortgage loan data submitted quarterly by commercial, thrift, and digital banks under BSP Circular Nos. 892 and 1154.

“The latest RREPI results signal a broad recovery in property prices after temporary weakness in the third quarter,” said BSP Deputy Governor Francisco Dakila Jr. in a prior briefing. “While demand-side factors such as financing constraints persist, supply-side adjustments and stable credit conditions are supporting price resilience.”