The Central Bank of the Philippines (BSP) has launched a new Residential Property Price Index (RPPI), positioning it as a more reliable measure of housing price trends than the Residential Real Estate Price Index it replaces. BSP has begun processing real estate information for the RPPI using first quarter 2025 data. The RPPI adopts a hedonic regression approach that incorporates property-specific characteristics such as location, size, and type, addressing limitations of the prior index methodology that relied on simple averages and assumed properties within a group were similar. Coverage is expanded to include new, pre-owned, and foreclosed houses, and the index uses actual acquisition costs rather than appraised values. BSP also applied the RPPI hedonic method to the dataset covering first quarter 2019 to fourth quarter 2024, and points to more stable index values and growth rates during disruptions such as the pandemic.
Central Bank of the Philippines 2025-06-27
Central Bank of the Philippines launches hedonic Residential Property Price Index replacing the Residential Real Estate Price Index
The Central Bank of the Philippines (BSP) has introduced a new Residential Property Price Index (RPPI) to replace the previous index, offering a more reliable measure of housing price trends. The RPPI uses a hedonic regression approach, incorporating property-specific characteristics and actual acquisition costs, and expands coverage to include new, pre-owned, and foreclosed houses. BSP applied this method retrospectively to data from Q1 2019 to Q4 2024, resulting in more stable index values and growth rates.