6 Key Insights from BSP RPPI Q1 2025 and Their Impact on Manila Real Estate
- bedandgoinc
- 9月11日
- 読了時間: 4分
September 11, 2025
The Bangko Sentral ng Pilipinas (BSP) recently released its Residential Property Price Index (RPPI) for Quarter 1, 2025, offering crucial insights into the current state of the housing market. For investors, buyers, and landlords, understanding these numbers is vital—especially in Metro Manila, where property values influence both short-term rental yields and long-term investment potential.
Below, we break down the six most important takeaways from the Q1 2025 RPPI and explain what they mean for Manila Real Estate today.
1. What Changed: RREPI Becomes RPPI
The most important technical change in 2025 is BSP’s official rebranding of the Residential Real Estate Price Index (RREPI) into the Residential Property Price Index (RPPI).
This renaming is not just cosmetic. It reflects BSP’s effort to modernize its reporting framework, ensuring consistency with international standards and enhancing transparency for analysts and the public. The RPPI measures changes in property prices across the country using data from residential real estate loans granted by banks, which means it closely tracks actual market activity.
For stakeholders in Manila Real Estate, this shift matters because it gives a clearer benchmark. Moving forward, all quarterly reports will be under the RPPI framework, allowing investors to track price trends, regional differences, and property type performance more reliably. Q1 2025 is thus the new baseline for comparison.
2. Headline Numbers: National Prices Still Rising
The RPPI revealed that nationwide residential property prices rose by 7.6% year-on-year (YoY) in Q1 2025. Although this is slightly slower compared to the 9.8% growth in Q4 2024, it still shows the upward trajectory of the housing market.
On a quarter-on-quarter (QoQ) basis, prices rebounded by 2.6%, reversing the slight dip of 1.0% seen in late 2024. This suggests that the market regained momentum early in 2025.
For the Manila Real Estate market, this means two things:
First, demand for property remains healthy, despite broader concerns about affordability and lending conditions.
Second, while the pace of growth has moderated, prices continue to rise, underscoring the long-term strength of property investments in Metro Manila.
3. Metro Manila Spotlight: The Growth Engine
The standout performer in Q1 2025 was Metro Manila (NCR). Residential property prices in NCR surged by 13.9% YoY—far above the nationwide average. On a QoQ basis, prices rose 9.2%, confirming that Manila’s urban housing market continues to drive national growth.
Breaking this down:
Condominium prices in NCR surged by 14.2% YoY and an even stronger 12.8% QoQ. This reflects robust demand for vertical living spaces, particularly in Makati, Bonifacio Global City (BGC), and Ortigas, where residential towers are closely integrated with offices, malls, and transport hubs.
House prices in NCR, while still up 11.2% YoY, dipped slightly 0.9% QoQ, reflecting weaker momentum for landed properties due to higher acquisition costs and land scarcity.
For those investing in Manila Real Estate, the implication is clear: condos are outperforming houses, especially in prime business districts where location and convenience fuel demand from professionals, expats, and corporate renters.
4. Outside NCR: Softer and Uneven Trends
While Metro Manila showed strong performance, Areas Outside NCR (AONCR) recorded a more muted growth trajectory. Prices in AONCR rose just 3.0% YoY and even slipped by -2.1% QoQ.
Sub-regional performance varied:
Metro Mindanao recorded the strongest YoY increase at 7.6%, showing resilience in southern growth centers.
Balance GMA (Cavite, Laguna, Batangas, Rizal, Quezon) posted a 3.8% YoY gain, reflecting spillover demand from NCR commuters.
Other Provinces managed a small 1.1% YoY increase.
Metro Cebu, notably, saw a -1.7% YoY decline—the first since early 2023—signaling a cooling market in one of the country’s largest urban centers.
For Manila-based investors, this reinforces the capital’s primacy. While regional markets offer opportunities, Metro Manila continues to outperform in both absolute and relative terms, making it the safest bet for steady appreciation.
5. Condos vs. Houses: Diverging Paths
The RPPI data shows a clear divergence between condominiums and houses nationwide:
Condominiums: Prices surged by 10.6% YoY and 9.9% QoQ nationwide. In NCR, condo prices were even stronger, rising 14.2% YoY.
Houses: Prices increased by 4.5% YoY, but slipped by -2.9% QoQ. Outside NCR, houses only grew 2.9% YoY and fell 3.4% QoQ.
Why the difference? Condos remain attractive because they are more accessible price-wise, easier to finance, and better suited for rental income generation. They also match modern living trends—smaller households, professionals preferring urban centers, and investors seeking steady cash flow.
For Manila Real Estate, this means condo projects will remain the backbone of investment strategies in 2025, particularly in transit-oriented and mixed-use districts.
6. Lending and Buyer Behavior: Signs of Softness
Despite rising prices, BSP reported a decline in the number of residential real estate loans (RRELs). Loan volume fell 1.9% YoY and a sharper -21.7% QoQ.
By type:
Condo loans grew 2.6% YoY, showing sustained demand in the vertical housing market.
House loans dropped 4.4% YoY, marking the fourth straight quarter of decline.
Median prices also highlight affordability gaps:
Nationwide median: ₱3.37 million
Condos median: ₱4.34 million
Houses median: ₱2.95 million
NCR houses median: ₱7.7 million—the highest in the country.
For buyers and investors in Manila Real Estate, these figures highlight two realities:
Condos are becoming the entry point for urban property ownership.
Affordability challenges may limit the buyer pool for houses in prime NCR areas, but condos remain relatively more accessible and bankable.
The BSP RPPI Q1 2025 paints a clear picture: Metro Manila is the engine of property growth, with condominiums leading the charge. Despite a slowdown in loan activity, property prices continue to climb, particularly in central business districts.
For buyers, this is a signal to act early—condos in Makati, BGC, and Ortigas are appreciating faster, and waiting may mean higher entry costs. For sellers, NCR properties—especially condos—offer strong leverage in negotiations. For landlords, rental yields may face pressure as prices climb, but creative leasing packages and value-added amenities can sustain occupancy.
Looking ahead, the key variables to watch are interest rates, new condo supply, and lending appetite. But overall, the Q1 2025 RPPI confirms that Manila Real Estate remains one of the strongest investment markets in the Philippines, with the condominium segment showing the greatest resilience and growth potential.
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