Philippine home price growth slowed to its weakest pace in seven years during the second quarter of 2026, according to the Bangko Sentral ng Pilipinas. The central bank's home price index rose just 0.4% year-on-year, down from 4.5% in the previous quarter. This slowdown marks the lowest level since early 2019, before the pandemic.

Metro Manila saw a more modest increase of 5.2%, while homes outside the capital experienced their first-ever year-on-year decline, falling 2.7%. The softening market reflects weaker demand driven by ongoing economic uncertainty and a government corruption scandal. Real estate developers are shifting focus toward end-users rather than investors.

The sector is now characterized as a buyer's market, with developers offering aggressive discounts to clear large inventories of unsold units. Residential real estate lending mirrored these trends, with robust growth in condominium loans in urban centers but a decline in housing loans outside the capital.