Home property prices hit 4-yr high

RESIDENTIAL property values posted a new four-year high as prices across all types of housing units soared in the first quarter of the year, data from the Bangko Sentral ng Pilipinas (BSP) showed on Friday.

The central bank’s Residential Real Estate Price Index (RREPI) surged by 12.4 percent to 134.9 in the first three months of 2020 from 120 a year earlier.

“This is the third consecutive quarter that the index has registered double-digit growth, which is higher than the 10.2- percent growth in the previous quarter and 3.3 percent a year ago,” the BSP said in a statement.

The figure is also the highest recorded since the Bangko Sentral started releasing the index report in the first quarter of 2016.

“Prices picked up across types of housing units in Q1 2020 compared to a year ago,” the central bank said.

Prices of condominium units were up by 23.6 percent, followed by those of single detached/ attached houses and townhouses, which accelerated by 7 percent and 5.5 percent, respectively.

Duplexes, which account for only 0.3 percent of the total number of new housing units reported, registered a price growth of 38.3 percent.

By area, the average residential property prices in the National Capital Region (NCR) and areas outside it — AONCR — increased by 18.3 percent and 8.5 percent, respectively.

“The brisker growth of property prices in NCR can be attributed to the higher increase in the prices of condominium units, which outweighed the decline in prices of single detached/ attached houses, duplexes and townhouses,” the BSP said.

Meanwhile, growth in prices was recorded in all types of housing units in AONCR, albeit at a slower pace in townhouses and condominium units, it added.

By region, Metro Manila accounted for 49.4 percent of residential real estate loans granted in the quarter. Calabarzon followed at 24.7 percent; Central Luzon, 7.7 percent; Central Visayas, 6.1 percent; Western Visayas, 3.3 percent; Davao Region, 2.9 percent; and Northern

Mindanao, 2.2 percent.

The “NCR and these six other regions combined accounted for 96.3 percent of total housing loans granted by banks,” the central bank said. About 74.4 percent of residential real estate loans granted were for the purchase of new houses.

By type, about 53.8 percent of residential property loans were for condominium units, followed by single detached/attached houses (38.2 percent) and townhouses (7.6 percent).

According to the Bangko Sentral, RREPI is a measure of the average change in the prices of various types of housing units based on banks’ data on loans used to acquire new housing units.

It is a chain- linked index, which 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.

The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country.