Philippine Property Market: BSP Hikes Rates Again as Inflation Fears Persist, Cebu Landmasters Shines at Property Awards
Borrowing costs climb further while the industry pauses to celebrate its top performers
Written by PropVela Editorial TeamPublished 2 min read
Monetary policy continues to dominate headlines for Philippine real estate watchers this week, even as the industry took time to honor its top achievers at a major awards night.
Bangko Sentral raises key rate to 5% as inflation risks remain
The Bangko Sentral ng Pilipinas has hiked its benchmark interest rate by 25 basis points to 5%, marking the third straight increase since April and bringing total tightening this year to 75 basis points. Officials cited ongoing threats from oil prices, a potential intense El Niño, and wage pressures as justification for the move, despite headline inflation showing signs of cooling. Overnight deposit and lending rates were adjusted accordingly to 4.5% and 5.5%. For homebuyers and developers, the continued tightening cycle means financing costs are likely to stay elevated for longer. According to Rappler, the central bank framed the hike as a preemptive step against future price shocks.
BSP projects August inflation up to 6.5%
The central bank now expects headline inflation for August to land between 5.5% and 6.5%, well above official targets despite recent rate hikes. Rising prices for rice, vegetables, fruits, and fish—worsened by poor weather and high fuel costs—are the main drivers, though a stronger peso could soften the blow somewhat. The forecast suggests borrowing costs tied to real estate financing may remain high for the foreseeable future. According to Context.ph, the BSP's outlook signals inflation pressures are proving more stubborn than hoped.
Summit of PHL real estate rises anew at 14th PropertyGuru Philippines Property Awards
The Philippine property industry gathered to recognize excellence at the 14th PropertyGuru Philippines Property Awards, where 16 organizations were honored across 46 categories. Cebu Landmasters emerged as a standout winner, taking home the Best Developer title along with nine other awards. The ceremony offered a snapshot of which developers are earning industry recognition even as the broader market navigates a challenging cycle. According to BusinessWorld Online, the awards continue to serve as a benchmark for achievement across the sector.