Housing prices rise by 2.1% in Q1 2018
MANILA, Philippines – Rates to purchase houses in the Philippines rose by 2.1% in the 1st quarter of 2018, according to data from the Bangko Sentral ng Pilipinas (BSP) released on Friday, June 29.
The BSP said the Residential Real Estate Price Index (RREPl) rose to 116.3 in the 1st quarter of 2018, compared to 113.9 in the same quarter last year.
The RREPI "measures the average change in prices of various types of housing units" such as single detached/attached houses, duplexes, townhouses, and condominium units, based on data from housing loans granted by banks.
In the 1st quarter of 2018, there was a 13.8% increase in the prices of townhouses and a 2% increase in the prices of condominium units.
In contrast, prices of single detached housing units declined slightly by 0.6%.
For Metro Manila alone, the average residential property prices increased by 2.7% compared to year-ago prices. "The higher growth in prices of condominium units, townhouses, and duplexes offset the decline in prices of single detached houses," according to the BSP.
In areas outside Metro Manila, the increase was 0.9%, with the higher increase in prices of townhouses and duplexes outweighing the decrease in prices of single detached houses and condominium units.
The BSP also said 73.5% of residential real estate loans in the 1st quarter of 2018 were for the purchase of new housing units.
By type of housing unit, 48.9% of residential property loans were for the acquisition of condominium units, 43.2% for single detached units, and 7.6% for townhouses.
Condominium units were the most commonly purchased in Metro Manila, while areas outside Metro Manila most preferred single detached houses.
There were 7 regions that accounted for 95.7% of total housing loans granted by banks:
- Metro Manila - 48.3%
- Calabarzon - 25.5%
- Central Luzon - 7.1%
- Central Visayas - 5.5%
- Western Visayas - 4.3%
- Davao Region - 3.2%
- Northern Mindanao - 1.8%
The BSP uses the RREPI as a tool to assess real estate and credit market conditions in the country. – Rappler.com