THE Philippine Stock Exchange property index has plunged 55 percent since 2019, reflecting persistent weakness in the real estate sector amid domestic and global uncertainties, according to a report by Leechiu Property Consultants (LPC).
The index had declined to about 1,917 from 4,197 in 2019, LPC director for investment sales Tam Angel said at the firm’s second-quarter Philippine Property Market Report briefing. He added that residential reservation cancellations also increased from the first quarter to the second, pointing to softer market conditions.
Angel said slower economic growth, elevated inflation, higher interest rates and a weaker peso continue to dampen housing demand and affordability.
“We don’t think it’s going to improve in the next two quarters. It’s going to be a really rough two quarters ahead. Right now we can’t even show any evidence to you that would say 2027 will be a better year,” he admitted.
Household incomes in the National Capital Region increased only 20 percent between 2019 and 2025, while home prices climbed 62 percent, widening the affordability gap.
“We feel richer on paper, priced out in practice,” Angel said, referring to the Philippines’ recent classification as an upper-middle-income economy.
Despite the near-term challenges, Angel said the market’s long-term fundamentals remain intact, citing strong remittances, a young population, a growing business process outsourcing industry and a buyer base that is about 95 percent local.
However, it was still too early to determine whether the property sector had bottomed out, since the market’s direction would depend largely on the domestic economy and global developments, LPC CEO David Leechiu said.
“It’s so uncertain right now because there’s so much turbulence globally,” he pointed out. “There’s much conflict going on, and those conflicts impact many economies and many parts of the economy.”
Yet the Philippines has remained resilient despite global volatility, with external shocks proving manageable so far, Leechiu said.
