Housing prices post slower growth in 1st quarter

Residential property prices in the Philippines continued to increase, although at a slower pace, during the first quarter of 2025 (Q1 2025), the Bangko Sentral ng Pilipinas (BSP) reported.

Year-on-year growth of the Residential Property Price Index (RPPI) slowed to 7.6 percent in January-March from 9.8 percent in the last three months of 2024. On a quarter-on-quarter basis, prices reversed from the fourth quarter of last year’s 1.0-percent drop, growing by 2.6 percent.

The National Capital Region (NCR) led residential property price growth with a 13.9-percent increase, significantly higher than the 3.0 percent observed in the rest of the country. Quarter on quarter, the NCR saw a 9.2-percent expansion while areas outside it recorded a 2.1-percent drop.

All areas outside the NCR, with the exception of Metro Cebu, recorded higher prices. Houses in Mindanao became 7.6-percent pricer, followed by the rest of the Greater Manila Area (GMA) at 3.8 percent and other areas in the Philippines at 1.1 percent.

Metro Cebu, on the other hand, registered a 1.7-percent drop — its first annual decrease since the first quarter of 2023.

All housing categories contributed to the higher prices, with condominiums and houses recording growth rates of 10.6 percent and 4.5 percent, respectively. Houses measured include single-attached, detached, town houses, duplexes and apartments.

Quarter on quarter, condominium prices grew by 9.9 percent, offsetting a 2.9-percent drop for houses.

The median price for all housing types was P3.37 million, the BSP said, lower than the P4.34 million for condominiums but above the P2.95 million for houses.

Houses in the NCR were the most expensive with a median price of P7.7 million, while condominiums in other areas in the Philippines were the cheapest at P2.5 million.

Residential real estate loans taken out during the first quarter, meanwhile, were mostly used to purchase new housing units (73.2 percent), with the remaining 26.4 percent and 0.5 percent used to buy pre-owned and foreclosed properties.

By type of housing, 63.7 percent of the loans were used for houses and the rest for condominiums.

Just over a fourth, or 27.4 percent, of the property loans were granted in the NCR. Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) accounted for 29.9 percent; Central Luzon, 13.8 percent, Central Visayas, 9.6 percent; Western Visayas, 7.9 percent; Davao, 4.5 percent; and Northern Mindanao (2.5 percent).

The NCR and these six regions accounted for 95.6 percent of housing loans granted by banks, the BSP said.

The RPPI calculates the average change in prices of different kinds of housing units over time from bank data on loans made to purchase residential properties.

The quarterly index, beginning the first quarter of 2025, now uses a different methodology to align with international best practices and has been renamed from the Residential Real Estate Price Index. Among others, it now uses acquisition cost instead of appraised value, and the property type has been expanded to include pre-owned and foreclosed units instead of just new ones.

Instead of just the NCR and areas outside it, the latter has further been divided into balance GMA, Metro Cebu, Metro Mindanao and other areas in the Philippines.

Source: Manila Times

Cash remittances jump 4% in April

Money sent home by overseas Filipino workers (OFWs) rose in April compared to a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported on Monday.

At $2.97 billion, personal remittances grew by 4.1 percent from the $2.86 billion posted in April 2024. It was the highest growth recorded since December 2022's 5.7 percent.

"Personal remittances to the Philippines continued to grow in April of this year as remittances from both land-based and sea-based overseas Filipinos increased," the central bank said in a statement.

Remittances, however, declined from the $3.13 billion recorded in March.

The April count pushed the tally for the first four months of 2025 to $12.37 billion, up 3.0 percent from the $12.01 billion recorded in January-April last year.

In April alone, money sent home via banks totaled $2.66 billion, 4.0 percent more than the $2.56 billion posted a year earlier but lower than March's $2.74 billion.

Cash remittances to date reached $11.11 billion, up 3.0 percent from the $10.78 billion recorded from January to April last year.

The United States continued to account for the biggest share of overall remittances at 40.4 percent, followed by Singapore at 7.3 percent; Saudi Arabia, 6.3 percent; Japan, 5.0 percent; and the United Kingdom, 4.5 percent.

Rounding out the top 10 were the United Arab Emirates (4.5 percent), Canada (3.2 percent), Qatar (2.9 percent), Taiwan (2.7 percent), and Hong Kong (2.7 percent).

The BSP qualified that remittance data by source has limitations, with the US appearing to be the main source as remittance centers in cities abroad commonly course the money through correspondent banks that are mostly located in the US.

Sought for comment, Philippine Institute for Development Studies senior research fellow John Paolo Rivera said the increase showed underlying strength in remittance flows, driven by stable overseas employment, particularly in the US, the Middle East, and parts of Asia.

"Moving forward, remittance growth is likely to remain steady, supported by demand for OFWs abroad, especially in health care, logistics, and domestic services," he said.

"The weaker PHP (peso) may also incentivize higher dollar remittances. But global uncertainties such as inflation in host countries, geopolitical tensions, and policy shifts like taxes on remittances in major markets (e.g., US) are downside risks to monitor."

Oikonomia economist Matt Erece, meanwhile, said the strong remittance growth in April was likely due to seasonal factors.

"We may continue to see stronger remittance inflows from OFWs due to the relative strength of the peso. They may be prompted to send more to maintain the same peso value they used to send," he added.

The peso has fallen against the dollar over the last two trading days and is now in P56:$1 territory after stabilizing at the P55:$1 level last month.

Source: Manila Times and Business World

Changing work styles fueling demand for coworking spaces

Demand for coworking workspaces in the Philippines is expected to rise amid easing inflation and as companies shift to flexible, short-term leasing, analysts said.

“The recent drop in inflation to 1.4%, coupled with the Bangko Sentral ng Pilipinas’ (BSP) guidance toward gradual interest rate cuts signals improving macroeconomic conditions, setting the tone for renewed business confidence and investment activity,” Ruth Coyoca, assistant vice-president for sales and business development at Greatwork Global Workspaces, said.

“For the coworking industry, this shift presents a significant upside,” she added.

The coronavirus pandemic has accelerated companies’ shift to flexible workspaces amid changing work styles. These include coworking spaces, hot desk and virtual offices and hybrid workspaces.

Ms. Coyoca said further rate cuts by the Philippine central bank could encourage both big and small companies to take up more flexible workspaces.

“Lower interest rates enhance liquidity and reduce the cost of financing, encouraging startups, small and medium enterprises and large corporations alike to explore expansion strategies, including new project teams and satellite offices,” she pointed out.

Inflation slowed to 1.4% in April, the lowest in over five years. BSP Governor Eli M. Remolona, Jr. earlier said they are open to cutting interest rates by 75 basis points more this year amid cooling prices.

To maximize the demand for coworking spaces, GreatWork is looking to strengthen its presence in central business districts such as Makati and Bonifacio Global City in Taguig.

It is also planning to expand in regional markets like Cebu, Davao and the greater Manila area amid the decentralization of the Philippine capital, Ms. Coyoca said.

“Our flexible lease terms, cost-efficient setups and prime locations allow companies to scale operations without the long-term financial commitments typical of traditional office spaces,” she said.

“Many international firms, especially those exploring soft market entries or setting up satellite teams, are turning to coworking solutions as a low-risk, high-agility option,” she added.

Weremote, a flexible workspace provider, said it has received inquiries from startups, business process outsourcing companies and corporate teams in need of satellite offices or swing spaces — temporary workspaces used by companies during periods of transition such as renovations, expansions or relocations.

“Flexible workspaces are no longer just a pandemic trend; they’ve become a reflection of how businesses now think about office use,” Weremote Managing Director Rene D. Cuartero said in a LinkedIn message.

He said companies want the flexibility to grow, scale down or adjust their team size without committing to long-term leases.

“Larger companies are coming to us to avoid the capital expenditures of fit-outs and office expansions as they want ‘move-in ready’ private offices,” he said. “On the other hand, smaller teams are choosing affordable but professional coworking spaces that give them credibility without the overhead.”

Mr. Cuartero also cited global economic headwinds from trade wars and geopolitical tensions, which have pushed companies to be more “risk-adverse” in terms of office space.

Traditional, long-term leases often come with heavy upfront costs such as fit-outs, deposits and long lock-ins, he pointed out.

For instance, outfitting a bare-shell workspace can cost over P50,000 per square meter, which may be too costly for some companies, Ms. Coyoca said.

“As these global economic changes continue, we see more companies choosing flexible setups like Weremote because they offer control, scalability and less exposure to risk,” Mr. Cuartero said.

Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said the appetite for coworking spaces remains strong as more companies adopt the “work-near-home” trend.

“A lot… are choosing coworking facilities within condominiums or any co-working facility near their place of residence,” he added.

Source: Business World