Philippine Property Market: Rate Hike Fears Collide With Resilient Housing Demand
BSP's expected fourth rate hike this year puts fresh pressure on an already cautious condo market
Written by PropVela Editorial TeamPublished 2 min read
This week's roundup looks at how a possible fourth straight rate hike from the central bank is shaping outlooks for the residential property sector, and how developers are adjusting strategies amid a persistent Metro Manila condo glut.
Rate hike seen to dampen property market
Property consultancy Colliers Philippines has flagged concerns that another expected rate increase from the Bangko Sentral ng Pilipinas could further cool residential demand. Most bank analysts polled expect a 25-basis-point hike this week, which would mark the fourth such move this year and push the policy rate to 5 percent. Colliers is urging developers to rethink payment schemes and selling tactics, especially for units priced between P2.5 million and P12 million, to keep buyers interested despite pricier financing. According to BusinessMirror, the firm sees this price band as most vulnerable to softer demand.
Poll: BSP to hike rates by 25 bps anew
Analysts surveyed expect the BSP's Monetary Board to deliver a fourth consecutive quarter-point rate hike this week as it continues battling inflation. Some, however, note that weak economic growth and the limited effectiveness of rate hikes against supply-driven price pressures could instead prompt the central bank to pause. The decision matters directly to property buyers and developers, since borrowing costs shape both mortgage affordability and financing conditions for new projects. According to BusinessWorld, the outcome remains genuinely uncertain heading into Thursday's decision.
Housing market finds surprising growth despite market pressures
Despite a tough backdrop, the residential sector is finding stability through affordable housing products, government-backed loan programs, and expansion into regional markets outside Metro Manila. Unsold condo units in the capital reached about 82,900 as of June, equivalent to roughly 34 months of supply, pushing developers to hold back on new launches. Combined pre-sales among major players like Ayala Land, SM Prime, Robinsons Land, and Megaworld slipped seven percent year-on-year in the first half of 2026. According to Manila Bulletin, low-cost housing and provincial growth are helping offset the capital's oversupply woes.