Housing prices outside Metro Manila still rising
MANILA, Philippines – Rates to purchase houses in the Philippines continued to rise in the last quarter of 2016, latest data from the Bangko Sentral ng Pilipinas (BSP) showed, with costs outside the National Capital Region (NCR) outweighing the decline in prices in the metro.
BSP data released on Saturday, April 1, showed housing prices slightly increased by 0.3% nationwide in October-December 2016 compared to the year before that.
The central bank's Residential Real Estate Price Index (RREPI) measures the average change in the prices of housing units across building types and locations, allowing regulators to monitor real estate and market conditions. This is an indicator of financial soundness as identified by the International Monetary Fund. (READ: Megaworld to complete Visayas BPO Triangle by 2019)
While there was a slight year-on-year growth in residential real estate prices, the BSP said this was slower compared to the 2.2% increase registered in the 3rd quarter of 2016.
The central bank attributed the slight increase to the 1.7% growth in average residential prices outside Metro Manila. (READ: Smart things to know about Philippine real estate)
This outweighed "the decline in prices in NCR by 1.1%" in the 4th quarter of 2016, the BSP said.
Housing loans remain in demand
Demand for housing loans also increased alongside housing prices. For the 4th quarter of 2016, about 7 in 10 real estate loans or 70.5% were for the purchase of new housing units.
The majority of these loans were for condominium units at 48.1%, followed by single detached units at 43.9% and then townhouses at 7.6%.
All types of housing units registered increases in the number of loans granted compared to their year-ago levels, with condominium units posting the highest growth of 37%.
The BSP report also showed that condominium units were the most common house purchases in Metro Manila while single detached houses were dominant in areas outside NCR.
By region, Metro Manila accounted for 51.6% of the total number of residential real estate loans granted during the quarter, followed by Calabarzon (25.6%), Central Luzon (5.8%), Central Visayas (4.7%), Western Visayas (3.9%), Davao Region (3.8%), and Northern Mindanao (1.5%).
Together, these 7 regions accounted for 96.9% of total housing loans granted by banks.
The BSP also noted that these 7 regions as well as Soccsksargen and the Cordillera Administrative Region (CAR) showed a generally increasing trend in the number of loans granted since the 2nd quarter of 2015.
The RREPI measures the average change in prices of various types of housing units covering single detached/attached houses, duplex units, condominium units, and townhouses based on data from housing loans granted by banks.
The central bank uses the index to monitor prices and detect risks stemming from the real estate market. It said at the start of 2016 that stress tests showed no signs of a housing bubble forming. – Rappler.com
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