Property price growth declines to slowest since 2019 — BSP
DAILY TRIBUNE file photo
Residential property prices in the Philippines grew at their slowest pace in nearly six years, rising 1.6 percent year-on-year in the fourth quarter of 2025, according to the Bangko Sentral ng Pilipinas (BSP).
In a statement, the BSP said the latest figure eased from 1.9 percent in the third quarter, extending a sharp deceleration seen earlier in 2025 when growth plunged from 7.5 percent in the second quarter to just 1.9 percent in Q3, signaling a cooling property market.
The fourth-quarter reading marks the weakest increase since the first quarter of 2019, underscoring softer demand and the impact of tighter financial conditions on the housing sector.
By location, price growth remained stronger in the National Capital Region (NCR), where residential values rose 2.3 percent, unchanged from the previous quarter. In contrast, areas outside Metro Manila saw further deceleration, with prices increasing by just 1.0 percent, the lowest growth on record.
The slowdown has been more pronounced outside the capital, reflecting weaker provincial demand after earlier surges in prices.
By housing type, trends diverged sharply. Prices of houses—including single-detached, townhouses and duplex units—barely increased, rising only 0.1 percent in Q4, a steep drop from 1.9 percent in Q3 and the weakest since 2019.
In contrast, condominium prices accelerated to 3.5 percent, up from 1.4 percent, suggesting sustained demand for vertical housing, particularly in urban centers.
Earlier data showed a similar pattern emerging in the third quarter, when house price growth slowed significantly while condominiums began to recover from earlier declines.
Analysts note that the broader slowdown reflects higher borrowing costs, tighter credit conditions and moderating demand, following years of strong property price increases.
The BSP said the Residential Property Price Index (RPPI)—based on banks’ housing loan data—remains a key gauge of real estate and credit market conditions, with the latest figures pointing to a more measured pace of growth in the sector.