Philippine Property Market: BSP Rate Hike Looms as Growth Shifts Beyond Metro Manila
A likely third straight rate hike and a provincial housing shift headline today's property news
Written by PropVela Editorial TeamPublished 1 min read
Today's roundup looks at monetary policy pressure bearing down on homebuyers and a notable shift in where developers are placing their bets.
BSP Widely Expected to Hike Rates by 25 bps
The Bangko Sentral ng Pilipinas is expected to raise its benchmark rate for a third consecutive meeting this Thursday, as elevated inflation, peso weakness and external risks take priority over growth concerns. Nine of 13 economists surveyed anticipate a 25-basis-point increase, which would push the policy rate to 5 percent, with RCBC's Michael Ricafort projecting it could reach 5.25 percent by year-end. Any further tightening would add pressure on mortgage rates and developer borrowing costs, both closely tied to housing demand. According to Philstar.com, the decision will be closely watched by the property sector given these financing implications.
Colliers: Next PH Property Boom Could Happen Outside Metro Manila
Colliers Philippines suggests that investor interest is drifting away from Metro Manila condominiums toward house-and-lot and lot-only developments elsewhere, as rental yields in the capital soften. Developers are reportedly ramping up launches outside Metro Manila to meet this shifting demand. The firm's Q2 2026 data shows Metro Manila still grappling with heavy unsold residential inventory, with vacancy at 24.9 percent overall and as high as 58 percent in the Bay Area, a figure expected to climb to 25.6 percent by year-end. According to Malaya Business Insight, this oversupply is pushing both buyers and builders to look beyond the capital region.