Housing prices up 5.6% in Q1 — BSP

Published June 23, 2022, 1:11 PM

by Lee C. Chipongian

Residential real estate prices rose 5.6 percent year-on-year in the first quarter, sustaining its growth momentum from 2021 as more homebuyers are confident of the recovering economy, according to the Bangko Sentral ng Pilipinas (BSP).

Based on the latest Residential Real Estate Price Index (RREPI), on a quarter-on-quarter basis, home property prices dipped by one percent from the fourth quarter 2021.

Makati CBD skyline

Still, in assessing the 5.6 percent RREPI increase year-on-year, the BSP said on Thursday, June 23, that this is consistent with Consumer Expectations Survey results for the first quarter which showed a higher percentage of consumers preferring to buy real estate property during the period.

By type of housing units, the prices of townhouses, duplex housing units, and condominium units improved in the first quarter. The price of townhouses increased by 25.6 percent, duplexes by 20.9 percent and condominiums by 14.7 percent. But prices of single-detached/attached houses fell by 2.5 percent.

Based on the RREPI, residential property prices in the National Capital Region (NCR) increased 9.5 percent year-on-year due to higher prices of condominium units and townhouses, which more than offset the decrease in the prices of duplex housing units and single-detached/attached houses, said the BSP.

In areas outside of the NCR, prices went up by five percent year-on-year for all types of housing units, except for single-detached/attached houses.

On a quarter-on-quarter basis, prices were mixed. It rose by 3.5 percent in the NCR but down by 2.1 percent outside of the metropolis.

The BSP said on Thursday that nationwide, residential real estate loan availments for new housing units decreased.

In the first three months, the number of residential real estate loans (RRELs) declined by 9.2 percent year-on-year because of the 39.3 percent decrease in RRELs in the NCR. On a quarter-on-quarter basis, RRELs were also down by 30.2 percent since loans in the NCR and in areas outside of the NCR declined by 42.5 percent and 22.9 percent, respectively.

About 74.3 percent of RRELs were used to purchase new housing units. By type of housing unit, 47 percent of the residential property loans were used for the acquisition of single-detached/attached houses while 38 percent were for condominium units. Another 14.4 percent were loans for townhouses.

The BSP said most of the RRELs in the NCR were granted for the purchase of condominium units, while RRELs in areas outside of the NCR were for the purchase of single-detached/attached houses.

By regional distribution, 33.2 percent of housing loans were from borrowers in the NCR, while the rest were outside of the metropolis. The CALABARZON area accounted for 32.4 percent of RRELs, followed by: Central Luzon with 12.6 percent; Central Visayas with 5.8 percent; Davao Region with 4.7 percent; Western Visayas with 4.6 percent; and Northern Mindanao with 1.5 percent.

The NCR and the said six regions combined accounted for 94.8 percent of total housing loans granted by banks, said the BSP.

The RREPI also included a report on the average appraised value of new housing units which was P69,757 per square meter (sqm) in the first quarter. In the NCR, the average was higher at P120,405 per sqm while in the national and in areas outside of the NCR, the average stood at P47,161.

Basically, the RREPI which was first reported in 2016, is a measure of the average change in the prices of various types of housing units. Its main data is extracted from banks’ actual mortgage loans granted to acquire new housing units only.