Housing affordability pressures in the Philippines showed clearer fault lines in the third quarter of 2025, with new central bank data revealing how location and property type increasingly shape what buyers can afford.
According to the latest Residential Property Price Index released by the Bangko Sentral ng Pilipinas, the median price of homes sold nationwide settled at P3.46 million as of the third quarter. This figure reflects the midpoint of prices across all residential transactions, capturing both houses and condominium units financed through bank loans.
While the national median offers a broad snapshot, the numbers underscore sharp contrasts beneath the surface. Condominium units edged slightly higher than the overall midpoint, while houses remained marginally cheaper on average, suggesting buyers continue to weigh space against price as market conditions soften.
Metro Manila remained the country’s most expensive residential market by a wide margin. The median price of homes in the National Capital Region reached P5 million, driven largely by the high cost of land and sustained demand in urban centers. Houses in Metro Manila posted the steepest price tag nationwide, with the median climbing past P7.36 million, while condominium units hovered near P4.72 million.
Outside the capital, price levels were notably lower but far from uniform. Areas beyond NCR recorded a median home price of just over P3.38 million, with houses generally more affordable than condominiums. In other parts of the country, median prices dipped further, reflecting weaker demand and broader geographic supply.
Within the broader urban belt, the Balance Greater Manila Area continued to mirror NCR trends at a more moderate scale, with median prices slightly above P3.4 million. Regional hubs showed distinct patterns: Metro Cebu saw housing prices tilt upward, particularly for houses, while Metro Mindanao posted more modest mid-range figures across both housing types.
Beyond price levels, the pace of growth itself signaled a cooling market. Home prices nationwide rose by just 1.9% year-on-year in the third quarter, the slowest increase recorded since the BSP began tracking residential prices in 2016. The moderation suggests tighter financing conditions and buyer caution are beginning to temper demand.
Metro Manila still led price growth at 2.3%, while areas outside the capital expanded at a slower 1.6%. By property type, house prices grew faster than condominium units, reinforcing the trend of buyers favoring long-term living space amid shifting work and lifestyle preferences.
The central bank’s index is based on actual mortgage loans granted by banks for new housing purchases, offering a grounded view of real market activity rather than listing prices. As growth cools and disparities widen, the data points to a housing market entering a more measured phase, where affordability, location, and financing conditions are increasingly decisive for Filipino homebuyers.