Property prices rise faster in Q1
The real estate sector continued to post double-digit growth in prices for the third straight quarter amid the sharp jump in the cost of acquiring condominium and duplex housing units despite the global coronavirus pandemic.
Data released by the Bangko Sentral ng Pilipinas (BSP) yesterday showed the residential real estate price index (RREPI) booked a double-digit increase of 12.4 percent to hit a record 134.9 in the first quarter from 120 in the same quarter last year.
“This is the third consecutive quarter that the index has registered a doubledigit growth, which is higher than the 10.2 percent growth in the previous quarter and 3.3 percent a year ago. This is also the highest growth rate since Q1 2016,” the central bank said in a statement.
The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since the first quarter of 2016.
It measures the average change in prices of various types of housing units based on data from housing loans granted by universal, commercial and thrift banks.
The BSP said residential property prices grew at a faster pace in the National Capital Region (NCR) at 18.3 percent to 156.7 compared with those in areas outside NCR at 8.5 percent to 122.7 in the first quarter of the year.
“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. Meanwhile, growth in prices was recorded in all types of housing units in AONCR albeit at a slower pace in townhouses and condominium units,” the BSP added.
Data showed prices of duplex housing units surged 38.3 percent to 167.3, followed by that of condominium units with 23.6 percent to 179.5. The prices of townhouse units rose by seven percent to 113.1, while that of single-detached housing units inched up by 5.5 percent to 141.8.
From B1 “By category of housing units, residential property prices climb yearon-year across all types of dwelling,” the BSP said.
For the first quarter, the central bank said 74.4 percent of residential real estate loans released were for the acquisition of new housing units.
By type of housing unit, 53.8 percent of residential property loans were for the purchase of condominium units, followed by single-detached units with 38.2 percent, townhouses with 7.6 percent and duplex units with 0.3 percent.
The BSP placed the real estate and project finance exposures of Philippine banks under tight watch after debt watchers and multilateral lending agencies raised the red flag over the possible overheating of the economy,
Fitch Ratings earlier warned that property price hikes fueled by the Philippine offshore gaming operators (POGO) sector could pose increasing risks to the banking industry. Banks have been raising provisions for soured loans in anticipation of more defaults due to the pandemic.