BSP: PH home prices accelerated in Q1
Home prices in the Philippines grew at a faster rate in the first quarter of 2026, before the Middle East crisis weighed on the volatile market.
The cost of various types of homes in the country, as measured by the residential property price index (RPPI), edged up 4.5 percent from a year earlier in the three months through March, the Bangko Sentral ng Pilipinas (BSP) reported.
That marked the strongest annual gain since the second quarter of 2025, when home prices grew 7.5 percent. On a quarterly basis, the index jumped 5.6 percent, its sharpest sequential increase on record.
The RPPI—which serves as a valuable tool for assessing the real estate and credit market conditions in the Philippines—replaced the previous gauge called the residential real estate price index. The BSP said the RPPI improved on the previous index by incorporating property-specific characteristics, such as location, size and type.
Condominiums led the gains. Condo prices rose 4.6 percent from a year earlier, the fastest increase in more than a year, as developers enticed buyers with aggressive discounts and more flexible payment terms, particularly for ready-for-occupancy units, the BSP said.
House prices rose 3.9 percent, the quickest pace in three quarters.
Home prices in the National Capital Region went up 3.5 percent while cost of shelter in areas outside of the capital region grew 5.7 percent.
Demand, however, showed signs of softening even before geopolitical tensions intensified.
The number of housing loans approved by banks rose just 1.3 percent from a year earlier in the January-to-March period. From the previous quarter, however, mortgage lending fell 23.9 percent as consumer sentiment toward buying homes remained weak, according to the BSP’s consumer expectations survey.
Banks also turned more cautious. The central bank’s quarterly survey of senior loan officers showed tighter lending standards for housing loans and weaker demand for credit.
The latest figures suggest the property market was regaining some footing before the outbreak of war in the Middle East added fresh uncertainty to the outlook. The oil shock tied to the war has squeezed household budgets, while many listed developers have focused on propping up their battered stock prices and strengthening balance sheets rather than borrowing to finance new projects.
Economists say the conflict has had little direct effect on real estate lending so far. But it has contributed to a more cautious mood among consumers, lenders and developers, raising the risk that the market’s tentative recovery could lose momentum in the months ahead.
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