Property price growth cools in Q1 as demand wanes

MANILA, Philippines — Residential property prices in the country continued to rise in the first quarter of 2025, albeit at a slower pace from a quarter ago, as demand in Metro Manila buoyed the market amid weaker growth in the rest of the country, the Bangko Sentral ng Pilipinas (BSP) reported.

The nationwide Residential Property Price Index (RPPI) rose by 7.6 percent year-on-year in the January to March period, easing from the 9.8 percent growth recorded in the fourth quarter of 2024.

On a quarterly basis, property prices reversed a decline in the previous quarter and grew by 2.6 percent.

The National Capital Region (NCR) was the main driver of the price gains, with the region posting a 13.9-percent increase in residential property prices from a year ago. This sharply contrasted with the modest three-percent uptick in areas outside the capital.

On a quarter-on-quarter basis, NCR prices surged by 9.2 percent, while prices outside NCR fell by 2.1 percent, underscoring the divergence in demand across the country.

“All areas in AONCR (areas outside NCR), except Metro Cebu, recorded year-on-year growth in residential property prices. Metro Mindanao registered the highest increase at 7.6 percent,” the BSP said.

By property type, condominiums and houses contributed to the national index’s growth. Prices of condominium units rose by 10.6 percent year-on-year, while house prices increased by 4.5 percent.

Condominium prices were the key driver of the overall price growth in NCR, surging by 14.2 percent in the first quarter from 11.9 percent in the prior quarter. House price growth in the region, while still strong, moderated to 11.2 percent from 13.3 percent previously.

Quarter-on-quarter, condo prices jumped by 12.8 percent in NCR, offsetting a 0.9-percent dip in house prices.

Outside NCR, condo and house prices rose by 1.8 percent and 2.9 percent, respectively, on a year-on-year basis. However, on a quarterly basis, house prices fell by 3.4 percent, pulling down the AONCR index despite a 2.9-percent gain in condo values.

Despite the rise in prices, housing loan availments declined across the board, reflecting consumer caution and tighter financing conditions.

The total number of residential real estate loans (RRELs) granted in the first quarter dropped by 1.9 percent year-on-year, driven by a 3.3-percent fall in AONCR. In contrast, loan growth in the NCR edged up by two percent.

“The decline aligns with the outcome of the first-quarter Consumer Expectations Survey, which showed consumers’ more pessimistic view on buying a house and lot during the period,” the BSP said.

The median price of residential properties in the Philippines stood at P3.37 million in the first quarter of 2025. Condo units remained the most expensive at a median price of P4.35 million, while houses were priced at P2.95 million on average.

NCR houses remained the priciest among all segments, with a median value of P7.72 million, more than double the national median.

The BSP said the RPPI is a key indicator in assessing real estate and credit market conditions, helping policymakers monitor financial stability risks in the property sector.