Philippine housing prices rise in Q2

Philippine housing prices increased in the second quarter as consumers were less pessimistic about purchasing residential properties, the Bangko Sentral ng Pilipinas (BSP) reported.

The BSP’s Residential Property Price Index (RPPI) showed housing prices nationwide went up by 7.5% in the April-June period.

However, this was slower than the 7.6% annual growth seen in the first quarter and the 7.9% a year ago. Quarter on quarter, the RPPI rose by 4.2%, outpacing the 2.6% growth in home prices logged in the first quarter.

The RPPI measures the average price changes over time of various residential properties using banks’ data on actual housing loans. The central bank said the data gives insight on the real estate and credit market conditions in the Philippines.

However, home prices in the National Capital Region (NCR) went up by 2.4% in the second quarter, slowing from the 13.9% in the previous quarter and 9.3% last year.

Quarter on quarter, NCR housing prices contracted by 3.6%.

Outside of NCR (AONCR), home prices rose by 11.5% during the April to June period, faster than the 3% in the first quarter and 7.2% a year ago.

Balance Greater Manila Area (GMA) had the highest annual growth in housing prices at 13.2%, followed by Metro Cebu (11.5%), other areas in the Philippines (8.8%), and Metro Mindanao (7.7%).

CONDO PRICES SLUMP

By housing type, condominium unit prices dipped by 0.2% in the second quarter, a reversal from the 11.5% increase in the comparable year-ago period and the 10.6% growth last quarter.

The cost of houses, which include single-attached or detached units, apartments, townhouses and duplexes, rose by 13.1% year on year. This was faster than the 5.4% in 2024 and 4.5% in the first quarter.

Data from the central bank showed the median price for all housing types in the Philippines stood at P3.4 million in the second quarter. Condominium units had a median price of P3.8 million, while houses cost around P3.1 million.

Houses in the NCR were the most expensive at a median price of P7.01 million, while houses in other areas in the Philippines were the cheapest at about P2.7 million.

In the second quarter, residential real estate loans (RREL) granted for all types of housing units in the country grew by 14.7% year on year.

“This uptick aligns with the results of the Q2 2025 Consumer Expectations Survey, which showed a less pessimistic outlook among consumers regarding the purchase of a house and lot,” the central bank said.

“Reflecting this shift in sentiment, a larger share of households considered Q2 2025 as a favorable time to purchase residential property,” it added.

By area, loan availments increased by 10.3% year on year in the NCR and by 16.6% in the AONCR. It was highest in the Balance GMA at 22.5%, followed by Metro Cebu at 18.7%, Metro Mindanao 12.9%, and other areas in the Philippines at 4.3%

The BSP said 74.6% of RRELs availed in the April-June period were for new housing units, while 25% were for pre-owned properties and 0.4% for foreclosed.

Over half or 60.4% of the loans were used for houses, while 39.6% were for condominium units.

Banks approved the most housing loans in Calabarzon (33.2% share) and NCR (28.5%), followed by Central Luzon (11.9%), Central Visayas (8.8%), Western Visayas (6.6%), Davao Region (4.2%) and Northern Mindanao (2.3%).

Source: Business World

Infrastructure spending slumps in July amid flood control mess

Infrastructure spending declined by 25% in July, amid sluggish disbursements by the Department of Public Works and Highways (DPWH), the Budget department said.

At the same time, Budget Secretary Amenah F. Pangandaman said infrastructure disbursements may remain subdued in the coming months amid the ongoing probe into anomalous flood control projects.

In its latest disbursement report on Thursday, the Department of Budget and Management (DBM) said expenditures on infrastructure and other capital outlays fell by 25.3% to P93.3 billion in July from P124.9 billion in the same month last year.

Month on month, it dropped by 37.3% from P123.8 billion spent on infrastructure in June. 

This marked a reversal of the 6.5% annual increase seen in June after the election ban on public works disbursements was lifted in early May.

The DBM attributed the year-on-year decline in infrastructure spending to weak disbursements by the DPWH, which is currently embroiled in a controversy over anomalous flood control projects.

The Budget department noted the slow DPWH disbursements were due to project implementation schedules, including the timing and phasing of infrastructure activities, as well as delays in procurement, incomplete submission of progress billings and required documents by contractors.

Spending in July was also affected by contractors’ compliance with the new tax clearance requirement of the Bureau of Internal Revenue (BIR) for the release of final payments.

The BIR earlier said the failure of contractors to present their tax clearance will result in the suspension of contract settlements and the imposition of a tax line over the contract amount in favor of the government.

The updated clearance guarantees that every contractor has no outstanding tax liabilities.

“Disbursements for the Revised Armed Forces of the Philippines Modernization Program (RAFPMP) of the DND (Department of Defense) were also lower in July 2025 attributed to the timing of releases, as big-ticket items were scheduled in August,” the DBM said.

At the same time, the DBM said lower spending was partly offset by higher disbursements from the Department of Transportation, driven by local counterpart funding for foreign-assisted projects and the settlement of outstanding payables.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the government should exercise caution to prevent anomalies and corruption allegations.

“However, other infrastructure projects in good order will continue,” he said.

For the January-to-July period, overall infrastructure and capital outlays disbursements slipped by 3.2% to P713.5 billion from P736.7 billion in the same period last year.

The decline was driven by combined factors, including the second-quarter election-related ban and timing of disbursements for the defense modernization program.

As of end-July, the DBM released P4.9 billion to the DPWH for nationwide classroom repairs, alongside P3.5 billion earmarked for the restoration of Gabaldon and other heritage school and the implementation of the Last Mile Schools Program.

‘TEMPORARY SLOWDOWN’

Meanwhile, Ms. Pangandaman said infrastructure spending this year was dented by the election ban, and now the ongoing investigation on flood control projects.

The Budget department warned of a temporary slowdown in infrastructure spending as the DPWH conducts tighter due diligence of projects.

“(This) following rigorous due diligence being undertaken by the DPWH to evaluate and validate status of completed projects, and employ measures to enforce stricter verification of progress billings and other payment claims,” the DBM said.

Earlier this month, the DPWH suspended the bidding of all locally funded projects for two weeks, to help the agency implement safeguards against so-called “ghost” projects.

“The DPWH has also since lifted the suspension of bidding and procurement activities for local projects to ensure continuity and timely implementation of the infrastructure program while implementing safeguards to prevent corruption and ensure compliance with existing laws, rules, and regulations,” the Budget department said.

“Infrastructure spending will hopefully normalize and catch up towards the latter part of the year.”

However, Ms. Pangandaman said it’s too early to tell if the infrastructure slowdown will dent economic growth.

“We’re working with the DBCC (Development Budget Coordination Committee) to crunch the numbers. We’ll know more after the next (DBCC) meeting,” she said.

Analysts said they expect spending to further cool until 2026 amid a widening probe on infrastructure projects.

“We may see even slower infra spending in the coming months amid scrutiny of the DPWH and the corruption scandal,” Reinielle Matt M. Erece, an economist at Oikonomia Advisory and Research, Inc., said.

Ateneo Center for Economic Research and Development Director Ser Percival K. Peña-Reyes said the flood control scandal is a “very hot issue” that’s likely to cool infrastructure spending through yearend.

Mr. Ricafort also said slower infrastructure spending could also dampen government spending, which contributes less than a fifth to the country’s economic output.

“Risk is slowdown in infrastructure spending and overall economic growth. But would help narrow the budget deficit and curb growth in overall NG (National Government) debt,” he said.

Source: Business World

Ways to ensure a flood-free home

Flood-prone properties may have tell-tale signs.

In the rainy season, it’s crucial to remain prepared and vigilant in order to stay safe, especially given the increasing severity of typhoon rains and winds today.

Geohazard conditions

If you’re eyeing to buy a new home, the first and perhaps most important step is to check whether the area is safe and not prone to flooding.

In 2012, the Department of Environment and Natural Resources (DENR) advised prospective buyers to avoid disaster-prone areas by referring to geohazard maps. Familiarizing yourself with the surroundings is crucial for your property’s long term sustainability.

Review your area’s elevation as well. Naturally, higher elevations reduce the risk of flooding. Avoid as much as possible the so-called “catch basin” areas, where water tends to accumulate, making these more prone to flooding and drainage issues.

Tell-tale signs

Flood-prone properties may have tell-tale signs.

One indicator can be found in an unlikely place—the ground floor toilet. If water goes up when flushing, there is a high chance that septic tank effluents are blocked because of floodwaters.

Leaks on windowsills and water marks, especially those on nearby fences, walls, or even tree trunks within the vicinity, are indicators of a flood prone property while flapping roofs and clogged gutters are signs of an unreliable house.

Outside the house, mud on the road is a sign that the surrounding vicinity is vulnerable to bad weather conditions, as this indicates the “looseness” of soil.

Coatings and sealants can be applied to the property’s foundation,walls, windows, and doorways.

Structural integrity

But if it cannot be helped, ensure your property’s structural integrity. Properties built with flood-resistant material, such as concrete, glazed brick, steel hardware, pressure-treated and marine-grade plywood, ceramic tile, and polyester epoxy paint can withstand contact with flood water for at least 72 hours without significant damage.

Floodproofing coatings, sealants, and waterproof veneer, such as a layer of brick backed up against a waterproof membrane, can also help protect your home’s interior and keep water from entering. Coatings and sealants can be applied to the property’s foundation, walls, windows, and doorways.

Proper drainage will also help circumvent any incoming floodwaters. Foundation vents can provide outlets for floodwater to flow through, while sewer backflow valves can keep flooded sewage systems from backing up into the home. In this case, gate valves generally do the job better than flap valves as they provide better seals against pressure.

After the storm

If you ever find yourself affected by flood, be sure to assess possible structural damages, such as roof damages or foundation cracks. Check if there are any downed power lines around your property, and refrain from touching them or stepping in puddles or other small bodies of water near them to avoid electrocution.

Electricity and appliances are likely the first ones you would want to check. But make sure first that all electrical outlets are dry before switching on the main power source.

Power outlets that have been submerged in floodwater should be opened. Use an air compressor with a hose to flush out any remaining water, then leave your power outlets to dry for around two days before switching them on.

Upholstered furniture and mattresses are likely to have contaminants and bacteria from floodwaters, and as such, be sure to clean them with disinfectant and extract as much water as possible immediately. Take note that musty odors may be signs of mildew and may pose health risks.

For other wet surfaces, clean them with hot water and laundry detergent or dishwashing liquid to prevent water damage.

Source: Inquirer