Building materials retail price growth in Metro Manila steady in Feb.

The retail price growth of construction materials in the National Capital Region was steady in February with an acceleration in electrical materials prices offset by a slowdown in painting materials and related compounds, the Philippine Statistics Authority (PSA) reported.

Citing preliminary data, it said year-on-year growth in the construction materials retail price index (CMRPI) for Metro Manila remained at 1.2% in February, in line with the average in the year to date.

The February reading exceeded the 1.1% year-earlier level.

Compared to January readings, growth accelerated in the subindices of electrical materials (2.1% in February from 1.9% a month earlier), masonry materials (1.1% from 1%), plumbing materials (0.8% from 0.7%), and miscellaneous construction materials (1.1% from 0.9%).

Meanwhile, the PSA said slower price growth compared to a year earlier was noted in the indices for painting materials and related compounds (1.8% from 2.1%) and tinsmithry materials (1.9% from 2%).

The CMRPI is based on 2012 constant prices.

Source: Business World

January NCR building materials price growth accelerates

Price growth of construction materials in Metro Manila quickened at retail and wholesale levels in January, the Philippine Statistics Authority (PSA) reported on Friday.

Based on preliminary data, the PSA showed that year-on-year growth of the construction materials wholesale price index (CMWPI) in the National Capital Region (NCR) rose 0.9% in January, a tad higher from the 0.8% growth in December.

It was also better than the 0.1% gain posted a year ago.

The latest reading was the fastest pace in almost two years or since the 1% growth in February 2024.

Contributing to January’s uptick were slower annual declines in structural steel (1.7% in January from 3% in December), reinforcing steel (0.7% from 1.5%), and metal products (0.6% from 0.7%).

Additionally, reversals were seen in commodities of hardware with 0.1% in January from its 0.1% drop in December, and fuels and lubricants with 0.4% growth from 1.9% decline a month earlier.

Meanwhile, PVC pipes posted faster annual growth to prices with 0.3% from 0.2% in December 2025.

Retail prices also grew

In a separate report by the PSA, the construction materials retail price index (CMRPI) inched up 1.2% in January from 1% in December. A year earlier, it had the same growth rate.

The January CMRPI outcome logged the quickest pace in a year or since the 1.5% in December 2024.

The PSA attributed the faster annual CMRPI growth to prices in tinsmithry materials which quickened by 2% in January from 1.7% in December, plumbing materials with 0.7% from 0.5%, and miscellaneous construction materials with 0.9% from 0.8%.

Meanwhile, carpentry materials posted a slower annual decline of 0.2% in January, compared with the 0.5% drop in December.

“What we’re seeing in January is a post‑holiday price reset combined with real cost pressures —higher import costs for cement and steel, elevated fuel and logistics expenses, and a pickup in construction activity as projects restart,” Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said in a Viber message.

He added that rising wholesale prices are being reflected in retail prices, suggesting that contractors have started transferring these costs down the supply chain.

“For February, prices should stay firm but stable, not spike. Over the rest of the year, expect a gradual upward trend — not a surge — as demand remains strong but supply chains are far more normalized,” he said.

The CMRPI is based on 2012 constant prices, while the CMWPI is based on 2018 constant prices.

Source: Business World

Colliers says housing prices may have recovered in Q4

Residential property prices may have picked up in the fourth quarter after the slump a quarter earlier, Colliers Philippines said.

“Similar to what we have seen previously, the fourth quarter is traditionally a strong quarter for residential take-up whether within or outside Metro Manila, whether it’s condominiums or horizontal,” Joey Roi H. Bondoc, director and head of research at Colliers Philippines, said.

The Bangko Sentral ng Pilipinas (BSP) Residential Property Price Index indicated that housing prices nationwide posted its weakest growth ever in the third quarter at 1.9%.

This was a sharp slowdown from the 7.5% growth posted in the three months to June and the year-earlier 7.6%.

The BSP also reported that lower real estate investment brought banks and trust entities’ real estate exposure down to 19.54% at the end of September from 19.61% at the end of June and 19.55% a year earlier.

Real estate loans climbed 8.9% year on year to P3.096 trillion at the end of September, but real estate investment slipped 5.75% to P354.749 billion.

Mr. Bondoc said yearend bonuses and inflows of remittances from overseas Filipino workers could have spurred demand for residential property in the fourth quarter.

He also noted that the peso’s recent weakness may prompt migrants, especially those from North America, to send more money home.

The peso has been trading between P58 to P59 to the dollar since October, hitting a fresh record low of P59.22 on Dec. 9.

However, Mr. Bondoc said elevated mortgage rates may still continue to dampen housing price growth in the near term, but any potential rate reduction could help property take up and price growth by this quarter next year.

“I think we need to watch out for the… possible reduction in mortgage rates, given that there has been a substantial decline in basic policy rates by the central bank,” he added.

“And if that happens, that will provide a better impetus for a spike in residential demand, and therefore residential prices, starting (in the) first quarter of 2026.”

The BSP ended the year with a fifth straight 25 basis-point (bp) cut on Dec. 11, bringing its total reductions on key borrowing costs to 200 bps since August 2024. The benchmark policy rate is currently at an over three-year low of 4.5%. 

Mr. Bondoc said lowering the mortgage rate between 6% and 6.5% from the current 7.8% could help the property industry by raising confidence among buyers.

“But the concern is that they have not been lowering their mortgage rates,” he added. “If they start doing that next year, 2026, I think (that will be) a very good sign that demand and then prices might recover faster because of this lower mortgage rate.”

Source: Business World