Real estate prices rise, reflect stable market growth

The Bangko Sentral ng Pilipinas (BSP) reported a continued increase in residential property prices during the first quarter of 2025, signaling ongoing resilience in the Philippine housing market despite a slight deceleration from the previous quarter.

Data from the newly launched Residential Property Price Index (RPPI) show that nationwide residential property prices rose by 7.6 percent year-on-year in the first quarter, a healthy pace following the 9.8-percent expansion seen in the fourth quarter of 2024.

The National Capital Region (NCR) led the trend with a significant 13.9-percent increase, highlighting sustained urban demand. Meanwhile, areas outside the capital region also posted a positive 3-percent uptick in property values, reflecting steady growth in regional markets.

Breaking down by housing type, prices of condominium units surged by 10.6 percent, while house prices climbed by 4.5 percent, indicating strong interest across different segments of the market.

The BSP emphasized that this performance reflects stability in the real estate sector, supported by continuous demand and improved economic fundamentals. “The housing market remains robust, with property prices rising in a more sustainable and measured fashion,” the central bank noted.

The BSP also highlighted improvements in its price-tracking methodology. The newly implemented RPPI, which replaces the previous Residential Real Estate Price Index, uses hedonic regression techniques to more accurately capture market trends. This approach considers property-specific attributes such as size, location, and type—offering a clearer and more comprehensive view of pricing dynamics.

By using actual acquisition costs and including data on new, pre-owned, and foreclosed properties, the RPPI is positioned as a more reliable tool for monitoring the real estate and credit landscape.

As the property market continues to evolve, analysts see the moderated pace of increase as a sign of a maturing market that balances growth with affordability, offering opportunities for both homebuyers and investors across the country.