Housing prices continue uptrend in Q2

MANILA, Philippines — Residential property prices climbed further in the second quarter, with nationwide housing costs rising both year-on-year and quarter-on-quarter despite mixed trends across regions, the Bangko Sentral ng Pilipinas (BSP) reported.

The Residential Property Price Index (RPPI) grew by 7.5 percent from April to June compared to a year ago, only slightly slower than the 7.6 percent increase in the first quarter.

On a quarterly basis, prices picked up pace, expanding by 4.2 percent compared to the 2.6 percent gain in the previous quarter.

BSP data showed that areas outside the National Capital Region (AONCR) drove the overall growth. Housing prices in these regions surged by 11.5 percent year-on-year, more than triple the three percent rise recorded in the first quarter. It also leapt by 10.5 percent quarter-on-quarter.

By contrast, price growth in Metro Manila slowed sharply to 2.4 percent from 13.9 percent a quarter earlier and even slipped by 3.6 percent from the previous three months.

“All areas in AONCR posted year-on-year and quarter-on-quarter increases,” the BSP said, highlighting that the Greater Manila Area registered the strongest annual gain at 13.2 percent, the fastest since early 2020.

Metro Cebu followed with an 11.5-percent increase, while other areas in the Philippines and Metro Mindanao rose by 8.8 percent and 7.7 percent, respectively.

The RPPI serves as a key gauge of property market conditions and potential risks to financial stability as it tracks changes in the prices of various types of residential properties based on bank housing loan data.

By housing type, house prices continued to power the market. Nationwide, prices of houses climbed by 13.1 percent from a year earlier, offsetting a slight 0.2-percent annual decline in condominium prices.

Property prices in NCR jumped by 14.3 percent year-on-year, but condominium prices reversed to a 2.2-percent contraction in the second quarter from a 14.2-percent increase in the first quarter.

The stronger market activity was also reflected in financing. The number of residential real estate loans granted nationwide rose by 14.7 percent year-on-year after four consecutive quarters of decline, supported by a 16.6-percent increase in AONCR and a 10.3-percent rise in Metro Manila.

Loans for condominium units posted the sharpest rebound, soaring by 39.8 percent year-on-year as lower-priced units accounted for a bigger share of transactions.

Loans for houses also recovered, up by 2.7 percent nationwide, driven by an 8.9-percent increase in AONCR even as the NCR saw a steep 45.6-percent drop.

The median price for all housing types nationwide stood at P3.41 million in the second quarter. Condominium units carried a higher median price of P3.81 million, while houses averaged P3.14 million.

Houses in Metro Manila remained the most expensive, with a median price of P7.01 million.