Residential real estate prices rose by 10.2 percent year-on-year in the first quarter this year while housing loans also increased during the period, according to the Bangko Sentral ng Pilipinas (BSP).
Based on the latest Residential Real Estate Price Index (RREPI), nationwide housing prices of various types of units increased by 10.2 percent on a yearly basis, but quarter-on-quarter, prices were down 1.4 percent.
The RREPI, a BSP tool to assess the real estate and credit market conditions in the country, measures the average change in the prices of various types of housing units such as single-detached/attached houses, duplex housing units, townhouses, and condominium units.
On a year-on-year basis, residential property prices in the National Capital Region (NCR) slowed to 7.3 percent as the price decline in condominium units dampened the price increases in duplexes, single-detached/attached houses, and townhouses, said the BSP.
In areas outside of the NCR, home property prices went up by 11.4 percent, with prices of all types of housing units going up, except for those of townhouses.
On a quarterly basis, the BSP said housing prices increased by 4.4 percent in areas outside of the NCR but contracted by 4.3 percent in the NCR.
By housing type, year-on-year the prices of duplex housing units rose by 22.1 percent while single-detached/attached houses increased by 17 percent. Prices of townhouses and condominium units also went up by 1.8 percent and 1.2 percent, respectively.
As for the quarterly tally, prices of single-detached/attached houses increased by 4.7 percent in the first quarter while townhouses were up 3.8 percent. However, prices of duplex housing units and condominium units declined by 16.4 percent and 5.1 percent, said the BSP.
The RREPI data is based on the actual mortgage loans of banks.
The BSP said for the first quarter, residential real estate loans (RRELs) granted for all types of new housing units grew by 16 percent year-on-year. It said RRELs in the NCR and areas outside of the NCR increased by 16.5 percent and 15.7 percent, respectively.
However, on a quarter-on-quarter basis, the nationwide growth in housing loan availments fell by 9.1 percent, following the 13.2 percent and 7.1 percent drop in RRELs in the NCR and areas outside of the NCR, said the BSP.
About 80.5 percent of RRELs were used to buy new housing units.
The BSP said most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in areas outside of the NCR were for single-detached/attached houses.
During the quarter, 28.7 percent of RRELs were from the NCR. The NCR and six regions outside of the NCR accounted for 93 percent of total housing loans during the quarter.
The six regions are divided as: 34.5 percent in CALABARZON; 13.7 percent in Central Luzon; 6.3 percent in Central Visayas; 5.6 percent in Western Visayas; 2.8 percent in Davao Region; and 1.4 percent in Northern Mindanao.
The RREPI included data such as the average appraised value of new housing units of P73,724 per square meter (sqm) in the first quarter this year.
The average appraised value per sqm in the NCR was at P123,053, higher than both the national average and the average appraised value in the areas outside of NCR at P51,459.
Since the RREPI is a chain-linked index, it is computed using the average appraised value per square meter, weighted by the share of floor area of each type of housing unit to the total floor area of all housing units, explained the BSP.
If you like this article, share it on social media by clicking any of the icons below.
Or in case you haven’t subscribed yet to our newsletter, please click SUBSCRIBE so you won’t miss the daily real estate news updates delivered right to your Inbox.
The article was originally published in Manila Bulletin and written by Lee C. Chipongian.
About Post Author
More Stories
Banks’ total assets up at P26.2 trillion end-June
Lamudi sees heightened developer confidence with rise in ad spending
Phase 1 of PHINMA’s Bacolod township to finish by next year