Residential property prices in the Philippines continued to rise in the fourth quarter of 2025, but at a slower pace, indicating a cooling housing market, according to data from the Bangko Sentral ng Pilipinas (BSP).
The Residential Property Price Index (RPPI) increased by 1.6 percent year-on-year (y-o-y) in Q4 2025, easing from 1.9 percent in the previous quarter. This marks the slowest annual growth in home prices since the first quarter of 2019. The deceleration suggests that demand for housing may be stabilizing after earlier gains, possibly reflecting higher borrowing costs, tighter household budgets, or increased supply in the market.
Price growth remained stronger in the National Capital Region (NCR) compared with the rest of the country. In Metro Manila, residential property prices rose by 2.3 percent y-o-y, unchanged from the previous quarter. Meanwhile, areas outside NCR (AONCR) recorded a slower increase of 1.0 percent, the weakest growth on record, pointing to softer demand in provincial markets.
Trends also varied depending on the type of housing. Prices of houses, including single-detached and attached units, townhouses, and duplexes, rose by just 0.1 percent in Q4 2025, a sharp slowdown from 1.9 percent in the third quarter and the smallest increase since early 2019. In contrast, condominium prices accelerated, rising by 3.5 percent from 1.4 percent previously, suggesting continued demand for vertical housing, particularly in urban centers.
The RPPI measures the average change in housing prices over time using data from actual bank housing loans. The BSP tracks this indicator closely to assess conditions in the real estate and credit markets. Monitoring property prices helps the central bank detect potential risks, such as excessively rapid price increases that could signal a market bubble or vulnerabilities in bank lending. It also provides insight into how housing trends influence borrowing and spending, allowing the BSP to make informed decisions to maintain financial stability.
Overall, the latest data reflects a more moderate pace of growth in the property market, with signs of uneven demand across regions and housing segments.
