Housing prices in the country continued to increase amid the strong demand for condominium units and townhouses, according to a survey conducted by the Bangko Sentral ng Pilipinas.
The Bangko Sentral said in a quarterly report residential real estate prices rose by an average of 3.1 percent year-on-year in the first quarter. Data showed the residential real estate price index climbed to 119.9 in the first quarter from 116.3 in the same period last year.
RREPI measures the average change in the prices of various types of housing units including single-detached houses, duplexes, townhouses and condominium units, based on data from housing loans granted by universal, commercial and thrift banks.
The survey found that prices of condominium units and townhouses went up by 10.9 percent and 9.6 percent, respectively. Meanwhile, prices of single-detached housing units decreased by 1.7 percent.
Prices of duplex units which accounted for only 0.5 percent of total new housing units reported declined by 8 percent year-on-year.
By area, the average residential property prices increased in both the National Capital Region and the provinces by 8.7 percent and 0.4 percent, respectively. In NCR, the rise in the average residential property prices was largely due to the increase in the prices of condominium units.
All types of housing units in the provinces registered price increases, except for single-detached houses.
About 74 percent of residential real estate loans in the first quarter were for the acquisition of new housing units. By type of housing units, 46.2 percent of residential property loans were for the purchase of single-detached units, followed by condominium units (44.5 percent) and townhouses (8.6 percent).
Most of the loans granted in the NCR were for the purchase of condominium units, while loans granted in areas outside the metropolis were for single-detached houses.
Under BSP Circular 892 dated Nov. 16, 2015, all universal, commercial and thrift banks are required to submit a quarterly report on all residential real estate loans granted for the generation of the price index.
All covered banks”•consisting of 46 universal/commercial and 53 thrift banks”•submitted their first-quarter 2019 reports to the BSP.
The RREPI, which is estimated every quarter and based on housing loans granted by banks, is a first in the Philippines. It provides a valuable tool in assessing the real estate and credit market conditions in the country.
It is computed as a weighted chain-linked index that is based on the average appraised value per square meter weighted by the share of the floor area of new housing units.