Metro Manila ranked second in a prestigious global index after experiencing a significant surge in prime residential prices, rising 19.9% from a year earlier.
The exceptional performance of landmark developments drove the market, with asking prices of about P1.2 million per square meter and P876,000 per square meter for properties in Park Villas and Laurean Residences, respectively.
Metro Manila has seen dramatic swings in the global rankings over the past year, climbing from 39th in the first quarter of 2025 to fifth in the second quarter, before falling to ninth in the third quarter and rising to second in the latest index.
The local luxury residential market is entering a period of natural normalization, as geopolitical uncertainties and the exit of Philippine Offshore Gaming Operators temper broader market activity.
Established luxury villages such as Forbes Park and Dasmariñas Village continue to command premium prices, with asking prices reaching about P800,000 per square meter and P750,000 per square meter, respectively.
Globally, annual prime residential price growth slowed to 2% in the first quarter, from 2.9% in the previous quarter and 4% a year earlier, indicating a more measured phase for the luxury housing market.
The luxury housing market is entering a more selective phase, with price growth remaining positive overall but the pace cooling and performance becoming increasingly concentrated in a smaller group of markets.
Demand for prime residential properties in the Philippines is expected to remain resilient, supported by overseas Filipino worker remittances and a growing middle-income population seeking higher-quality homes.
In the secondary luxury residential market, Taguig posted the highest asking prices at P864,000 per square meter, followed by Makati at P433,000 per square meter, while Alabang and Mandaluyong both stood at P357,000 per square meter.
The widening price gap between the primary and secondary markets is encouraging more buyers to consider resale properties, where sellers are increasingly offering more flexible bank financing than the cash-heavy payment terms that previously dominated the luxury segment.
Developers are shifting toward horizontal residential projects in growth areas such as Cavite, Laguna, and Batangas, supported by infrastructure projects including the Metro Manila Subway and the Light Rail Transit Line 1 extension, which are expected to improve connectivity and unlock new residential corridors.
More than 700 luxury residential units are scheduled for turnover this year, including a range of high-end developments across Metro Manila.
