Home prices of new units nationwide rebounded by 5.3 percent in the fourth quarter of last year, driven by an increase across the board.

The Bangko Sentral ng Pilipinas on Friday reported overall property prices reversed from a contraction of 1.6 percent in the third quarter.

Metro Manila-based house prices grew by 5.7 percent while those in the provinces increased by 4.8 percent.

Single or detached houses in Metro Manila posted a 22.7 percent growth from 20.8 percent, while townhouses were costlier at 2.7 percent growth from a contraction of 9.9 percent. Condominium prices also rose by 4 percent from a decline of 6.5 percent.

Duplex houses in the provinces posted a price surge of 124 percent from a decline of 47.3 percent, while townhouses registered a smaller decline of 0.3 percent from 4.1 percent.

Homes outside urban centers costlier

Single houses in the countryside were costlier at 4.7 percent growth from 1.1 percent, while condominium prices grew by 10.4 percent from a decline of 2.1 percent.

Due to continued demand for new houses and unchanged credit standards of banks, the Central Bank said approved home loans nationwide rose by 34.3 percent from 3.1 percent.

Loans for condominium units in the provinces increased by up to three digits at 135 percent from 17.3 percent. Meanwhile, loans for Metro Manila units increased by 47 percent from 21 percent.

Loans for single houses in Metro Manila also increased by 8.7 percent from a decline of 31 percent, while those in the provinces contracted slower by 1.9 percent from 4.2 percent.

Debts up for townhouse purchases

Borrowings for townhouses in the cities and the countryside also grew by 6.8 percent and 1.8 percent, respectively, from declines of 3 percent and 10 percent.

Bank of the Philippine Islands chief economist Jun Neri said households could have extra cash for big-ticket items this year due to possible cheaper rice.

“Filipinos spent most of their funds on rice in 2008 when its prices rose by over 20 percent; last year it was 16 percent,” he said.

Overall prices dropped to 2.1 percent last month from 2.9 percent in December 2024 and January 2025 due to cheaper rice, fuels, and utilities, according to the Philippine Statistics Authority.

However, Neri said the government and the private sector must find more effective measures to taper prices of other food items, especially meat and fish, to encourage more households to buy new houses.

If overall inflation improves, Neri said the Bangko Sentral ng Pilipinas could ease its policy rate for lenders from 5.75 percent to 5.25 percent this year, making borrowings for home purchases cheaper.

The economist said the country’s robust employment rate of over 95 percent also ensures stable cash inflows among households.

“Our domestic economy remains vibrant and we could stand out given our household consumption strength,” Neri said.