Residential property prices in the Philippines continued to climb in the first quarter of 2025, though at a slower rate compared to the previous quarter, according to the Bangko Sentral ng Pilipinas (BSP).
In a report released Friday, the BSP said the nationwide Residential Property Price Index (RPPI) rose by 7.6% year-on-year in Q1, easing from the 9.8% increase recorded in the fourth quarter of 2024.
The National Capital Region (NCR) led the growth with a 13.9% surge in residential prices, while areas outside NCR saw a more modest 3% increase.
Both condominium units and houses contributed to the overall price uptick. Condo prices jumped by 10.6%, while house prices rose by 4.5%.
The RPPI measures changes in the prices of different types of residential properties, based on bank data from actual housing loan transactions. It serves as a key tool in assessing real estate and credit market conditions in the country.
The BSP also noted that this updated version of the RPPI, launched using Q1 2025 data, follows international best practices and replaces the earlier Residential Real Estate Price Index.
“The new RPPI adopts hedonic regression techniques, which factor in specific property characteristics like location, size, and type. This provides a more accurate picture of market trends compared to the old method, which relied on simple averages,” the BSP said.
The central bank added that the revised RPPI now covers a wider range of properties—including new, pre-owned, and foreclosed homes—and bases price changes on actual acquisition costs rather than appraised values.