Property prices surge outside NCR in Q2 2025

Residential property prices in the Philippines climbed 7.5 percent year-on-year in the second quarter of 2025, slightly below the 7.6 percent increase in the first quarter, according to the Bangko Sentral ng Pilipinas.

Areas Outside the National Capital Region (AONCR) drove the growth, recording an 11.5 percent rise in housing prices, more than triple the 3.0 percent posted in the previous quarter.

In contrast, price growth in the National Capital Region (NCR) slowed significantly to 2.4 percent from 13.9 percent in the first quarter, marking a regional deceleration.

Quarter-on-quarter, the nationwide index rose 4.2 percent, faster than the 2.6 percent gain in the first quarter, underscoring continued market momentum.

AONCR led quarterly growth as well, with prices increasing by 10.5 percent, while NCR prices declined by 3.6 percent.

Balance Greater Manila Area (GMA) posted the highest annual growth among AONCR regions at 13.2 percent, followed by Metro Cebu at 11.5 percent, Other Areas in the Philippines at 8.8 percent, and Metro Mindanao at 7.7 percent.

On a quarterly basis, Balance GMA also led gains with an 11.7 percent increase, followed by Metro Cebu at 12.2 percent and Other Areas in the Philippines at 10.2 percent.

House prices rose by 13.1 percent year-on-year nationwide, offsetting a marginal 0.2 percent decline in condominium prices.

Quarterly, house prices jumped 10.3 percent while condo prices dipped 2.8 percent, reflecting shifting buyer preferences.

In the NCR, house prices surged 14.3 percent year-on-year but were dragged by a 2.2 percent drop in condo prices, reversing from the double-digit growth seen in the first quarter.

The quarterly decline in NCR was largely due to a 5.4 percent fall in condo prices, which overshadowed the 1.9 percent rise in house values.

Outside the capital, AONCR saw robust annual growth in both houses and condos, which rose 12.6 percent and 6.2 percent, respectively.

Quarterly price increases in AONCR reached 12.3 percent for houses and 4.0 percent for condo units, showing broad-based demand recovery.

The number of residential real estate loans (RRELs) granted nationwide rose 14.7 percent year-on-year in the second quarter, breaking a year-long streak of decline.

“This uptick aligns with the results of the Q2 2025 Consumer Expectations Survey (CES), which showed a less pessimistic outlook among consumers regarding the purchase of a house and lot,” the BSP report stated.

A larger share of households—25.3 percent—considered the second quarter a favorable time to buy residential property, up from 21.6 percent in the previous quarter.

The increase in RRELs was led by AONCR with 16.6 percent growth, followed by NCR at 10.3 percent.

Within AONCR, Balance GMA registered a 22.5 percent increase in housing loan availments, followed by Metro Cebu (18.7 percent), Metro Mindanao (12.9 percent), and Other Areas in the Philippines (4.3 percent).

Quarter-on-quarter, total housing loan availments rose by 5.4 percent, with both NCR and AONCR contributing positively at 9.7 percent and 3.8 percent, respectively.

Loans for condominium units surged 39.8 percent year-on-year nationwide, driven by increases in both NCR (29.8 percent) and AONCR (60.8 percent).

The BSP noted that “the majority of these transactions involve condominium units priced below the three-year average acquisition cost,” with 62.0 percent of condo sales falling into that category in Q2 2025.

Loans for houses increased 2.7 percent year-on-year nationwide, driven by an 8.9 percent rise in AONCR that more than offset the 45.6 percent drop in NCR.

Median housing prices in Q2 2025 stood at PHP 3,405,847 (USD 60,118.60), with condo units priced higher at PHP 3,807,373 (USD 67,128.96), while houses averaged PHP 3,137,700 (USD 55,402.09).

Houses in the NCR remained the most expensive, with a median price of PHP 7,011,900 (USD 123,847.16), while the lowest-priced homes were in Other Areas in the Philippines at PHP 2,668,360 (USD 47,149.61).

NCR condominiums carried the largest weight in the national index at 30.6 percent, followed by Balance GMA houses at 28.6 percent.

Roughly 74.6 percent of RRELs were used to purchase new housing units, while 25.0 percent went to pre-owned homes and 0.4 percent to foreclosed properties.

By housing type, 60.4 percent of loans were used to buy houses, while 39.6 percent were for condominiums.

Regionally, the NCR accounted for 28.5 percent of all loans, followed by CALABARZON (33.2 percent), Central Luzon (11.9 percent), and Central Visayas (8.8 percent).

The BSP emphasized that the Residential Property Price Index (RPPI) remains a key indicator in assessing real estate and credit market conditions across the country.

The significance of this report lies in its value as a real-time gauge of housing demand, credit market activity, and regional economic shifts—particularly as the Philippine economy continues to recover from pandemic-era disruptions.

As residential property investment reflects both consumer confidence and lending conditions, the RPPI provides critical insight for central bankers, developers, investors, and policymakers seeking to balance growth with financial stability.

Rising property prices in AONCR signal growing economic opportunities and urban expansion beyond Metro Manila, while the cooling of NCR condo prices suggests shifting housing preferences and affordability concerns.

Loans for condominium units surged 39.8 percent year-on-year nationwide, driven by increases in both NCR (29.8 percent) and AONCR (60.8 percent).

The BSP noted that “the majority of these transactions involve condominium units priced below the three-year average acquisition cost,” with 62.0 percent of condo sales falling into that category in Q2 2025.

Loans for houses increased 2.7 percent year-on-year nationwide, driven by an 8.9 percent rise in AONCR that more than offset the 45.6 percent drop in NCR.

Median housing prices in Q2 2025 stood at PHP 3,405,847 (USD 60,118.60), with condo units priced higher at PHP 3,807,373 (USD 67,128.96), while houses averaged PHP 3,137,700 (USD 55,402.09).

Houses in the NCR remained the most expensive, with a median price of PHP 7,011,900 (USD 123,847.16), while the lowest-priced homes were in Other Areas in the Philippines at PHP 2,668,360 (USD 47,149.61).

NCR condominiums carried the largest weight in the national index at 30.6 percent, followed by Balance GMA houses at 28.6 percent.

Roughly 74.6 percent of RRELs were used to purchase new housing units, while 25.0 percent went to pre-owned homes and 0.4 percent to foreclosed properties.

By housing type, 60.4 percent of loans were used to buy houses, while 39.6 percent were for condominiums.

Regionally, the NCR accounted for 28.5 percent of all loans, followed by CALABARZON (33.2 percent), Central Luzon (11.9 percent), and Central Visayas (8.8 percent).

The BSP emphasized that the Residential Property Price Index (RPPI) remains a key indicator in assessing real estate and credit market conditions across the country.

The significance of this report lies in its value as a real-time gauge of housing demand, credit market activity, and regional economic shifts—particularly as the Philippine economy continues to recover from pandemic-era disruptions.

As residential property investment reflects both consumer confidence and lending conditions, the RPPI provides critical insight for central bankers, developers, investors, and policymakers seeking to balance growth with financial stability.

Rising property prices in AONCR signal growing economic opportunities and urban expansion beyond Metro Manila, while the cooling of NCR condo prices suggests shifting housing preferences and affordability concerns.