In the fourth quarter of 2024 the Philippines reported a recovery in residential real estate prices, marking a year-on-year (y-o-y) growth of 6.7 percent. This recovery followed a 2.3 percent contraction in the previous quarter, highlighting a strong rebound driven by key factors such as housing loan trends and supportive policies from the Bangko Sentral ng Pilipinas (BSP). On a quarter-on-quarter (q-o-q) basis, residential property prices saw a 5.3 percent increase.
The upturn in prices was particularly pronounced in areas outside the National Capital Region (AONCR), where prices surged by 9.3 percent, with significant gains across most housing types. Conversely, the National Capital Region (NCR) saw a modest y-o-y decline of 0.4 percent, mainly due to a drop in townhouse prices. However, both regions posted q-o-q price increases, with NCR rising by 5.7 percent and AONCR by 4.8 percent.
Single-detached/attached houses saw the highest y-o-y price growth at 12.8 percent, while condominium units also showed resilience with a 5.1 percent increase. Townhouses, however, recorded a 3.4 percent y-o-y decline in prices.
Despite a continued slowdown in housing loan availments, with a 10.8 percent y-o-y decrease, the quarter-on-quarter growth of 34.3 percent indicates a rebound in loan activity. The BSP’s ongoing credit easing measures appear to have contributed to this recovery, as evidenced by increases in loan availments for new housing in both NCR and AONCR.
Residential prices across countries in Asia in the third quarter last year generally improved except in the Philippines where it contracted by 2.3 percent, South Korea by 0.36 percent and Hong Kong where the contraction was deepest at 13.02 percent.
This recovery is significant for the Philippine economy, indicating a stabilization of the housing market after challenges faced during the pandemic and highlighting the BSP’s role in supporting the real estate sector through strategic policies.
