Housing prices post weakest growth in Q3

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December 27, 2025 | 12:00am

MANILA, Philippines — Residential property prices in the Philippines posted their slowest annual growth on record as broad-based price gains cooled sharply in the third quarter, according to the Bangko Sentral ng Pilipinas.

Data from the BSP’s Residential Property Price Index (RPPI) showed nationwide housing prices rose by just 1.9 percent year-on-year in the third quarter, a steep slowdown from the 7.5 percent increase recorded in the previous quarter.

On a quarter-on-quarter basis, prices declined by 3.8 percent, reversing the 4.2 percent growth posted in the second quarter and marking “the largest quarter-on-quarter decline in the nationwide RPPI since the series began in the first quarter of 2019.”

“Residential property prices across various types of housing units in the Philippines increase year-on-year, albeit at a slower pace,” the BSP said.

By location, the National Capital Region continued to support overall price growth, with residential prices in the NCR rising by 2.3 percent year-on-year in the third quarter. However, this was only marginally higher than the national average and came alongside a 0.8 percent quarter-on-quarter decline.

Outside the NCR, prices grew by 1.6 percent year-on-year, sharply down from the 11.5 percent expansion in the previous quarter, while quarter-on-quarter prices fell by 5.9 percent, the largest decline in areas outside the NCR since the second quarter of 2019.

Price weakness was more evident across regional markets. In AONCR, residential property prices in more urbanized areas still posted annual increases, but growth rates eased across all regions.

Metro Mindanao recorded the fastest year-on-year growth at 5.5 percent, followed by Metro Cebu at 3.8 percent, while Balance Greater Manila Area slowed to 2.2 percent, its lowest growth rate since the first quarter of 2020. Meanwhile, prices in Other Areas in the Philippines contracted by 2.1 percent year-on-year, the first decline since the third quarter of 2021.

By housing type, price trends were mixed but broadly weaker. House prices rose by 1.9 percent year-on-year, a sharp moderation from the 13.1 percent growth in the previous quarter and “the lowest annual growth recorded for houses since the first quarter of 2020.”

Condominium unit prices rebounded to 1.4 percent annual growth from a 0.2 percent contraction in the second quarter, but still declined by 1.4 percent on a quarter-on-quarter basis.

Despite softer price growth, housing loan activity strengthened during the quarter. The BSP reported that the number of residential real estate loans granted nationwide rose by 24.6 percent year-on-year and 16.5 percent quarter-on-quarter.

Loan activity was supported by improved consumer sentiment and a higher proportion of households viewing the period as a favorable time to buy a house.

Still, the combination of modest annual gains and record quarterly declines suggests that price growth in the residential property market has entered its weakest phase in years, reflecting cooling demand conditions and mounting adjustments across regional markets.