Housing Price Growth Loses Momentum Nationwide
Prices for homes in the Philippines slowed down a lot in the third quarter of 2025, which shows that the housing market was losing steam. Data from the central bank showed that prices stopped rising as quickly as they had been earlier this year.
This slowdown suggests that buyers and developers are being careful in how they deal with changes in the economy. The cooling trend across all types of housing was caused by higher borrowing costs and lower demand.
Central Bank Data Highlights Sharp Quarterly Slowdown
The Residential Real Estate Price Index went up only 1.9% from July to September 2025, compared to the same time last year. This was a big drop from the strong 7.5% growth seen in the previous quarter.
Analysts see the sharp slowdown as a return to normal after prices rose sharply. The data shows that the housing market is stabilizing instead of falling apart completely.
Capital Region Continues to Outperform Provinces
During the third quarter, property prices in the National Capital Region went up faster than the national average. Prices in Metro Manila went up 2.3% from last year, which was better than other areas.
In contrast, prices for homes outside of the capital city went up by only 1.6%. This gap shows that housing demand and buying power are still different in different parts of the country.
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Diverging Performance Across Housing Types
The data showed that prices moved in very different ways across different types of homes in the country. There was only a 1.9% increase in the number of single-family homes, apartments, and townhouses.
This was a big drop from the 13.1% growth in the second quarter. The slowdown is due to less demand for traditional types of housing.
Condominium Market Shows Signs of Recovery
Condo prices started to stabilize earlier than prices in other types of housing during the quarter. During the months of July to September, the prices of condo units went up by 1.4% compared to the same time last year.
This recovery came after a 0.2% drop in the previous quarter. Analysts say that urban demand and investor interest helped the condo market make a small recovery.
Loan-Based Index Tracks Real Market Activity
The central bank makes the property price index by using real housing loans that banks have approved. This method gives a better picture of how the real estate market is doing.
The index helps figure out how stable the credit market is and how much people want to buy homes by looking at loan transactions. This information helps policymakers keep an eye on financial risks.
Outlook Reflects Cooling Yet Stable Property Sector
The most recent numbers show that the Philippine housing market is entering a slower but more stable phase. Prices are still going up, but not as quickly as they were earlier in 2025.
Economists think that buyers will continue to be careful because the economy is still uncertain. Interest rates, income growth, and the overall state of the economy will all affect how stable the market is.
