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Manila Bulletin devider Business devider Banking & Finance devider Property market rebounds as prices rise, loan demand slumps

Property market rebounds as prices rise, loan demand slumps

Published Jun 29, 2026 12:00 am  |  Updated Jun 27, 2026 01:39 pm

At A Glance

  • Property costs accelerated in the first quarter of 2026, signaling a broader recovery in the residential market after successive declines, although tighter lending standards continued to dampen borrowers' appetite for property purchases.

Property costs accelerated in the first quarter of 2026, signaling a broader recovery in the residential market after successive declines, although tighter lending standards continued to dampen borrowers’ appetite for property purchases.

Property inflation quickened in the first quarter, according to the Bangko Sentral ng Pilipinas’ (BSP) latest residential property price index (RPPI) report, released on Friday night, June 26.

“Price growth recovered in the first quarter of 2026 across both houses and condominium units, indicating renewed momentum in the residential property market,” the BSP said in a statement.

Nationwide residential property prices surged by 5.6 percent in the first quarter, a sharp reversal from the 1.3-percent contraction recorded in the fourth quarter of 2025. This was driven by developments in Metro Manila.

“Higher property prices in the National Capital Region (NCR) led the quarter-on-quarter recovery in nationwide property prices in the first quarter, reversing two consecutive quarters of negative outturns,” the BSP wrote in a separate report.

Recall that property prices contracted by 1.3 percent in the fourth quarter of 2025, following an even deeper decline of 3.8 percent in the previous quarter.

Prices in Metro Manila jumped by 10.4 percent during the period, recovering from a two-percent decline in the previous quarter. Areas outside NCR (AONCR) also saw a 2.5-percent quarter-on-quarter increase, improving from the 0.7-percent decline a quarter ago.

While most regions improved, provincial areas remained in negative territory, with prices declining by 1.9 percent quarter-on-quarter, although this was an improvement from the 5.8-percent contraction in the fourth quarter of 2025.

By housing type, the overall inflation was chiefly “driven by condominium units, while house prices posted more modest gains.”

Condominium prices nationwide rebounded strongly by 11.1 percent quarter-on-quarter after three consecutive quarters of decline. This growth was supported by “developers’ aggressive promotional offers and more flexible payment terms, particularly for ready-for-occupancy (RFO) units.”

Meanwhile, house prices recovered modestly with a 0.8-percent increase, following a 0.9-percent contraction in the previous quarter.

Despite the increase in prices, the financing market cooled significantly as “real estate loan growth contracted quarter-on-quarter in the first quarter of 2026 across all areas and housing types amid rising property prices.”

BSP data showed that the volume of residential real estate loans (RRELs) granted nationwide plummeted by 23.9 percent quarter-on-quarter, a stark contrast to the 8.4-percent growth seen in the previous quarter.

“This reflected continued consumer pessimism toward property purchases and tighter bank credit standards, which weighed on loan demand,” the BSP said.

Related Tags

Bangko Sentral ng Pilipinas (BSP) Property Inflation
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