RESIDENTIAL property prices rebounded in January-March after two consecutive quarterly declines, but housing loan activity slowed sharply as tighter bank lending standards and cautious consumers weighed on demand.
The Bangko Sentral ng Pilipinas’ (BSP) latest Residential Property Price Index (RPPI) showed nationwide residential property prices up by 5.6 percent in the first three months of 2026 after dropping by 1.3 percent and 3.8 percent, respectively, in the third and fourth quarters of 2025.
The number of residential real estate loans (RRELs) granted nationwide, however, contracted by 23.9 percent from 8.4-percent growth in the previous quarter. Compared with the same period last year, however, they grew by 1.3 percent.
"Real estate loan growth contracted ... across all areas and housing types — houses and condominium units — amid rising property prices," the BSP said.
It attributed the slowdown to continued consumer pessimism, although sentiment was said to have shown signs of improving.
On the supply side, the BSP said banks continued to tighten lending standards while reporting weaker demand for credit.
The recovery in residential property prices was driven mainly by the National Capital Region (NCR), where prices jumped 10.4 percent after a 2.0-percent contraction.
Areas outside NCR (AONCR) also posted a 2.5-percent increase from -0.7 percent three months earlier.
Broken down, the Balance Greater Manila Area posted the fastest quarterly growth of 4.3 percent, followed by Metro Mindanao at 1.4 percent and Metro Cebu at 1.3 percent.
Property prices in other areas of the country, however, continued to decline but by a slower 1.9 percent from 5.8 percent in the previous quarter.
By housing type, condominium units led the market recovery, climbing 11.1 percent quarter-on-quarter after three straight periods of decline, while house prices rose by a more modest 0.8 percent.
“The increase in prices was supported by the broader recovery in the property sector, alongside developers’ aggressive promotional offers and more flexible payment terms, particularly for ready‑for‑occupancy units,” the BSP said.
Housing loan activity, meanwhile, weakened across nearly all regions during the quarter.
Nationwide, loans granted for condominium units plunged 34.1 percent quarter-on-quarter while loans for houses dropped 15.3 percent.
Of all residential real estate loans granted during the period, 77.6 percent financed new housing units while 22.0 percent were used for pre-owned properties and 0.4 percent for foreclosed units.
Houses accounted for 60.4 percent of total housing loans while condominium units comprised the remaining 39.6 percent.
By area, locations outside NCR accounted for the majority of loan availments, with the Balance Greater Manila Area posting the largest share. NIÑA MYKA PAULINE ARCEO
