Condominiums in Metro Manila continue to pace rising PH property prices

AVERAGE prices of residential properties across the Philippines continued to rise in the first quarter of the year, led by the continued appreciation of high rise apartment units in and around the capital, according to the latest report from the central bank.

“By area, average residential property prices increased in both the National Capital Region and [areas outside the capital] by 8.7 per cent and 0.4 per cent, respectively,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.

“In [the Metro Manila area], the rise in the average residential property prices was largely due to the increase in the prices of condominium units,” it noted, adding that, in areas outside the metropolis, all types of housing units registered price increases, except for single detached houses, which recorded a decline.

The central bank said real estate prices for homes of various types increased by an average of 3.1 per cent year-on-year in the first three months of this year.

The Residential Real Estate Price Index – which measures the average change in the prices of various types of housing units comprised of single detached houses, duplexes, townhouses and condominium units, based on data from housing loans granted by universal, commercial and thrift banks – increased to 119.9 from 116.3 for the same quarter a year ago.

“Prices of condominium units and townhouses increased by 10.9 per cent and 9.6 per cent, respectively,” said the regulator, which closely monitors property prices and banks’ corresponding loan exposures to the sector.

On a quarterly basis, the property price index also rose by 1.6 per cent, with prices of single detached housing units decreasing by 1.7 per cent.

Prices of duplex units – which account for only 0.5 per cent of total new housing units reported – also declined by eight per cent.

For the first quarter of this year, 74 per cent of residential real estate loans were for the acquisition of new housing units. By type of housing unit, 46.2 per cent of residential property loans were for the purchase of single detached units, followed by condominium units (44.5 per cent) and townhouses (8.6 per cent).

By area, most of the real estate loans granted in Metro Manila were for the purchase of condominium units, while property loans granted outside the capital were for single detached houses.

By region, Metro Manila accounted for 42.5 per cent of the total number of loans granted during the quarter.