The local residential real estate market cooled in the third quarter, with prices experiencing the first annual decline in three years, according to data released by the Bangko Sentral ng Pilipinas (BSP).
The Residential Real Estate Price Index (RREPI) fell 2.3% year-over-year to 163.9, marking a reversal from the previous quarter’s growth. This contraction follows a 9.4% drop in the second quarter of 2023.
The slowdown was broad-based, with duplex prices plunging 48.1% and condominium prices declining 9.4%. This suggests waning demand in the high-rise segment as buyers potentially shift preferences.
While prices dipped 14.6% in the National Capital Region, they edged up 3% outside the metropolis.
Residential real estate loans also contracted, falling 15.7% year-over-year. This decline, while sharp, was less severe than the pandemic-era drop.
The cooling of the market reflects a confluence of factors, including rising borrowing costs and shifting consumer preferences.
