Residential real estate prices up 1.8% in Q3

Prices of residential real estate such as townhouses and condominium increased during the third quarter of 2017 or by 1.8 percent year-on-year, according to the central bank’s Residential Real Estate Price Index (RREPI).

The Bangko Sentral ng Pilipinas (BSP) said RREPI went up to 111.6 from 109.6 same period in 2016, with prices of townhouses and condominium units rising by 7.3 percent and 3.6 percent, respectively.

The RREPI, which is computed as weighted chain-linked index based on the average appraised value per square meter weighted by the share of floor area of new housing units, also indicated that prices of single detached housing units were up “at a slower rate” by 0.8 percent compared to townhouses and condominium’s faster pace of growth. Duplex prices actually dropped by 8.6 percent year-on-year.

On a quarter-on-quarter basis, the BSP said the RREPI “remained broadly steady.”

By location, residential property prices in the National Capital Region (NCR) and the areas outside NCR also increased by 2.2 percent 1.8 percent year-on-year, respectively.

The BSP noted a decrease in the NCR prices of single detached houses and duplexes but the higher growth in the prices of townhouses and condominium units made up for the decline. In areas outside NCR, prices of single detached houses, townhouses, and condominium units increased but duplexes were still on the decline.

For the third quarter, the BSP said 76.7 percent of real estate loans were used to buy new housing units.

“By type of housing unit, 48 percent of residential property loans were for the acquisition of condominium units, followed by single detached units (40.8 percent) and townhouses (10.8 percent),” the BSP said. By area, condominium units were the most common house purchases in NCR while single detached houses were prevalent in areas outside NCR.

Seven regions accounted for 96.9 percent of total housing loans. The NCR had 47.4 percent of the total number of residential real estate loans during the period, followed by CALABARZON with 29 percent) and Central Luzon with 6.4 percent. The Central Visayas accounted for 5.2 percent while Western Visayas had 4.3 percent, Davao Region with three percent and Northern Mindanao with 1.6 percent.

The RREPI measures the average change in prices of various types of housing units comprising of single detached/attached house, duplex, townhouse, and condominium unit based on data from housing loans granted by universal, commercial, and thrift banks. (LCC)