Philippine Property Market: BSP's Jumbo Rate Hike and Housing Bill Backlash
Borrowing costs climb as developers warn new housing bill could choke supply
Written by PropVela Editorial TeamPublished 1 min read
Two developments are shaping today's property conversation: rising borrowing costs from the central bank and mounting industry pushback against a proposed housing law. Here's a rundown of both.
BSP surprises with jumbo rate hike, signals further tightening
The Bangko Sentral ng Pilipinas caught markets off guard this week with a 50-basis-point increase to its benchmark reverse repurchase rate, pushing it to 5.5 percent — its highest level in nearly two years. It's the fourth consecutive hike this year, driven by concerns over widening inflation risks tied to supply shocks and a strong El Niño. The Monetary Board also hinted that more tightening could follow, a signal likely to push mortgage rates and real estate financing costs higher across the sector. According to BusinessWorld, the move raises fresh questions about borrowing conditions for both developers and homebuyers in the months ahead.
CREBA highlights potential implications of proposed LGU cash collection scheme on housing supply
The Chamber of Real Estate and Builders' Associations is raising alarms over House Bill No. 9697, which would amend the Urban Development and Housing Act. CREBA argues the measure could sharply cut socialized housing output and discourage private developers from investing in residential projects altogether. A key sticking point: the bill would require compliance housing projects to be built either within the main development or the same local government unit, a restriction CREBA says adds cost and uncertainty for builders and buyers alike. According to the Philippine Daily Inquirer, the group is urging lawmakers to reconsider the provisions before they reshape housing supply nationwide.