Residential property prices in the Philippines rose at a much slower pace in the third quarter, pointing to easing demand and more cautious activity in the housing market, according to data from the Bangko Sentral ng Pilipinas (BSP).
The Residential Property Price Index (RPPI) showed prices increased by 1.9 percent year-on-year in Q3 2025, sharply lower than the 7.5-percent growth recorded in the previous quarter. The slowdown suggests that higher interest rates and tighter financial conditions may be starting to weigh on homebuyers and property investment decisions.
Metro Manila continued to drive price growth, with residential property prices in the National Capital Region (NCR) rising by 2.3 percent. In contrast, prices in areas outside NCR grew more modestly at 1.6 percent, reflecting softer demand in provincial markets.
By housing type, price movements were mixed. Prices of houses—including single-detached, townhouses, duplexes, and apartments—rose by 1.9 percent year-on-year, a significant deceleration from the 13.1-percent surge seen in Q2. Condominium prices, however, showed signs of stabilization, rebounding to a 1.4-percent increase after declining by 0.2 percent in the previous quarter.
The RPPI tracks changes in housing prices based on actual home loan transactions reported by banks. The BSP uses the index as a key gauge of real estate market health and credit conditions, making the latest slowdown an important signal for both policymakers and property developers monitoring the economy’s direction.
