Prices of residential real estate across all housing units rose by 6.1 percent year-on-year in the first quarter this year, with condominium units registering the highest growth, according to the central bank’s latest Residential Real Estate Price Index (RREPI).
On a quarterly basis, housing prices increased by 1.1 percent, revering the 3.6 percent decline in the fourth quarter 2023.
The RREPI, a Bangko Sentral ng Pilipinas (BSP) tool to assess the country’s real estate and credit market conditions, measures the average change in the prices of various types of housing units, such as single-detached/attached houses, duplex housing units, townhouses, and condominium units.
The chain-linked index, first introduced in 2016, is also based on banks’ data on actual mortgage loans granted to acquire new housing units but does not include pre-owned or foreclosed properties.
The BSP reported that by area, residential property prices in the National Capital Region (NCR) increased by 2.8 percent in the first quarter, with townhouses and condominium units leading the property sale. Prices of single-detached/attached houses declined during the period.
In areas outside the NCR, the BSP noted a 7.4 percent growth as all housing units posted price increases.
On a quarterly basis, residential property prices in areas outside the NCR rose by 4.1 percent, while those in the NCR declined by 5.6 percent.
Excluding duplex housing units, by housing type, condominium units registered the highest year-on-year growth rate at 10.2 percent. This was followed by townhouses at 5.6 percent and single-detached/attached houses at 5.1 percent.
On a quarterly basis, all housing types minus duplex housing units increased prices in the first quarter, such as the prices of townhouses, which grew the fastest at 4.4 percent; condominium units at 0.5 percent; and single-detached/attached houses at 0.4 percent.
The number of residential real estate loans (RRELs) during the quarter grew by 8.9 percent year-on-year. Housing loans from the NCR went up by 3.2 percent, while in areas outside of the NCR, they rose by 11.4 percent.
However, nationwide, RRELs fell by 24.2 percent on a quarterly basis because of the 35.3 percent and 18.2 percent declines in the number of RRELs in the NCR and in areas outside of the NCR, respectively.
About 83.5 percent of housing loans were used to purchase new houses, with single-detached/attached houses representing 43 percent of the share, followed by condominium units with 34.7 percent and townhouses with 22 percent.
The RRELs granted in the NCR were used to buy condominium units while RRELs available in areas outside of the NCR were borrowed to purchase single-detached/attached houses.
By region, 26.3 percent of RRELs were borrowed by NCR homebuyers. The other regions, including the NCR, comprised 93.1 percent of total housing loans during the period.
Outside of the NCR, the regions with the most share in RRELs were CALABARZON with 34 percent; Central Luzon with 13.3 percent; Western Visayas with 6.6 percent; Central Visayas with 6.1 percent; Davao Region with 4.8 percent; and Northern Mindanao with two percent.
In computing the RREPI, the weight of each type of housing unit is determined by dividing the total floor area of a specific type of housing unit over the total floor area of all housing types.
As of end-March, single-detached/attached houses continue to account for the largest weight in the RREPI at 52.4 percent, followed by condominium units with 25.3 percent; townhouses with 22.1 percent; and duplex housing units with 0.3 percent.
The BSP said the appraised value of new housing units in the country averaged at P82,260 per square meter (sqm) in the first quarter, which was 11.6 percent higher compared to same period last year.
The average appraised value per sqm in the NCR increased by 7.9 percent year-on-year to P132,743 per sqm. In areas outside of the NCR, the appraised value per sqm rose 18.9 percent year-on-year to P61,163.
The BSP said the RREPI is mainly an indicator it uses to assess the real estate and credit market conditions in the Philippines.