Philippine lawmaker seeks housing finance safeguards after rate rise
Metro Manila condominium demand has weakened, with lower-priced units accounting for a larger share of purchases, according to Colliers Philippines.
Philippine lawmaker JP Padiernos has urged banks and policymakers to provide targeted housing finance programmes for first-time buyers on middle and lower incomes, warning that higher interest rates could make homes less affordable.
His call follows a 50-basis-point increase in the Bangko Sentral ng Pilipinas’ policy rate to 5.50%. Padiernos, a member of the House Committee on Banks and Financial Intermediaries, said rising borrowing costs and spending on necessities could restrict families’ ability to obtain housing loans.
He noted that a policy rate increase does not translate immediately into an equivalent rise in every bank mortgage rate. However, benchmark rates affect lenders’ funding costs and the timing of loan repricing, he said.
Figures from Colliers Philippines showed that Metro Manila condominium net take-up fell to 500 units during the second quarter of 2026. That was down 60% from the preceding quarter and marked the weakest result in five quarters.
Units costing ₱1.8 million to ₱3.6 million represented 67% of net take-up during the first half of 2026, compared with 33% a year earlier. Colliers urged developers to reconsider sales approaches and offer more flexible payment periods, particularly for homes priced from ₱2.5 million to ₱12 million.
The affordability concerns come as S&P Global Ratings forecasts Philippine GDP growth of 2.9% for 2026 and average annual inflation of 5.5%. The agency expects household spending to face further pressure through the first half of 2027.
