Property prices post modest growth in Q3 2025

Residential property prices in the Philippines recorded modest growth in the third quarter (Q3) of 2025, rising 1.9 percent year-over-year, slower than the 7.5 percent increase posted in the previous quarter, according to data released by the Bangko Sentral ng Pilipinas (BSP).

The data are based on the Residential Property Price Index (RPPI), which tracks price movements of various types of housing units using information from banks’ actual housing loan transactions.

The index is one of the key indicators monitored by the BSP in assessing real estate and credit market conditions.

By location, residential property prices in the National Capital Region (NCR) led the overall increase, posting a 2.3-percent year-on-year rise in Q3 2025.

In comparison, property prices in areas outside the NCR grew by a more modest 1.6 percent during the same period.

Nationally, the pace of price growth reflected a clear moderation.

Year-on-year price increases slowed to 1.9 percent in Q3 2025 from 7.5 percent in Q2 2025, indicating softer momentum in the housing market amid tighter financial conditions and more cautious buyer sentiment.

Quarter-on-quarter data showed that prices declined by 3.8 percent nationwide in Q3 2025, reversing the 4.2-percent increase recorded in Q2 2025.

This suggests that short-term adjustments in pricing may follow earlier gains.

Within the NCR, residential property prices fell by 0.8 percent from the previous quarter, following a 3.6-percent decline in Q2 2025.

Outside the NCR, prices dropped by 5.9 percent quarter-on-quarter after a strong 10.5 percent increase in the preceding quarter.

By housing type, price trends were mixed.

House prices—including single-attached or detached units, apartments, townhouses, and duplexes—rose by 1.9 percent year on year in Q3 2025, sharply slower than the 13.1 percent growth recorded in Q2 2025.

Condominium unit prices showed signs of recovery, rebounding to a 1.4-percent year-on-year increase in Q3 2025 after contracting by 0.2 percent in the previous quarter.

The improvement points to gradually stabilizing demand in the condominium segment.

The BSP said that RPPI movements provide important signals on housing demand, credit conditions, and potential risks to financial stability.

Slower property price growth may help temper speculative activity, while sharp declines could signal stress in the real estate sector.

For households, changes in residential property prices influence affordability, borrowing decisions, and household wealth.

For policymakers, the index serves as a guide in calibrating monetary and macroprudential policies to ensure a stable and sustainable property market.