The Philippines has been experiencing a very strong economic growth. Alongside this development, the country’s residential property market is also on the rise. Last 2015 to early 2016, the Bangko Sentral ng Pilipinas (BSP) reported that the price index for residential real estate in the country increased by 9.2%.

The index climbed 1.9% from 2015 as reported in Q1 of the year 2016. Bank reports, published quarterly, about residential real estate loans have shown this data about the increasing price index.

Here are the average price increases year-on-year by property type (Q1 of 2016):

Property Type % Price Increase Inflation-Adjusted
Attached/ Single detached house 8.1% 6.9%
Duplex house 6.7% 5.5%
Townhouse 8.6% 7.3%
Condominium units 12.9% 11.6%

In 2015 to early 2016, the BSP also reported that prices for residential properties rose to 9.7% in Metro Manila while prices increased by 9.4% in Areas Outside of the Metro.

On the contrary, the cost of premium condominium units in the metro’s Central Business Districts were not increasing as fast as other key cities. On the average, a 3-bedroom luxury condo unit in Makati increased its price at only 2.4% in the same period. This is the lowest year-on-year increase in the Central Business District of Makati since Q3 of 2010, according to Colliers International. In Q1 of 2016, condominium prices only rose to 0.2%. The average price of a luxury 3-bed condominium in Rockwell Center only increased by 5.5% while condominium unit prices only went up by 2.6% in Fort Bonifacio.

Because of the country’s continuous economic growth, Nationwide prices of residential properties are still expected to increase. But a slow-down is expected for developments in Metro Manila’s Central Business Districts because of a supply and demand mismatch.

According to reports from the Philippine Statistics Authority (PSA), the country’s economy rose 6.9% in the first quarter of 2016. The International Monetary Fund also projects the Philippine economy to rise by 6.2% this year.

A steady influx of expatriates and foreigners also contributed to the demand for condominium and apartment units. Although these non-nationals cannot own land, they can still buy apartments or condominium units in high-rise buildings. Foreigners are also allowed to buy houses but not the land where the house is built. They can only lease the land for a maximum of 50 years. The lease can be renewed once for an additional 25 years.