Philippine property prices rose again in the third quarter of 2022 as the country continues to emerge from the pandemic. Both on-site work and in-person classes resumed in full which contributed to the increase. According to the Bangko Sentral ng Pilipinas (BSP), the Residential Real Estate Price Index went up by 6.5 percent year-on-year with the biggest gains being recorded in the National Capital region.

In Metro Manila, residential property prices surged by 14.6 percent in the third quarter of 2022 when compared to the second quarter due in large part to the condominium sector. The central bank reported that prices here skyrocketed by 12 percent from the previous quarter and 26.7 percent year-on-year.

This was the sixth consecutive quarter that Philippine property prices have risen and they are now inching closer towards pre-pandemic levels. However, it remains to be seen if the current trend will continue. Some have warned that interest rate hikes from the BSP may hinder the property market’s recovery in 2023.

Related: More signs Metro Manila luxury condo market is rapidly recovering

Demand for real estate services expected to pick up

Demand for real estate services in the Philippines is expected to increase this year as the country’s reopening nears its completion and the economy continues to recover. According to the government, there should be an uptick in people buying and selling property which means a greater need for agents, lawyers and other industry professionals.

Finance Secretary Benjamin Diokno added that real estate services focusing on both the commercial and residential property segments will rebound, although considerations must be made for the new normal. This includes the adoption of hybrid work and flexible office space.

“Real estate has been a significant player in the Philippine economy but commercial spaces, home rentals, and sales took a downturn during the pandemic,” Diokno was quoted as saying by PhilStar Global. “With the easing of mobility restrictions and higher economic activity, we call for the support of the private sector as we strive to exceed pre-pandemic macroeconomic targets.”