The country’s residential real estate market rebounded strongly in the final three months of last year, with nationwide property prices climbing by 6.7 percent, driven by substantial growth in areas outside Metro Manila.
Data from the Bangko Sentral ng Pilipinas (BSP) showed that the fourth-quarter recovery was a significant turnaround from the previous quarter's contraction, indicating a renewed upward trajectory in the housing sector.
Areas outside the national capital region (AONCR) recorded the most significant price appreciation, with a 9.3 percent year-on-year increase. This growth was widespread across most housing types, with the exception of townhouses.
Conversely, Metro Manila posted a slight year-on-year decrease of 0.4 percent, primarily due to a decline in townhouse prices, which offset gains in other housing categories.
Quarter-on-quarter, both Metro Manila and AONCR recorded price increases, with the NCR rising by 5.7 percent and AONCR by 4.8 percent.
Among housing types, single-detached/attached houses showed the highest year-on-year growth at 12.8 percent, followed by condominium units at 5.1 percent.
Townhouses, however, registered a 3.4 percent year-on-year decline. All housing categories registered quarter-on-quarter price increases.
On the other hand, the number of residential real estate loans (RRELs) for new housing units nationwide continued to contract on a year-on-year basis, although at a slower rate. The year-on-year change improved to -10.8 percent in the fourth quater, compared to -15.7 percent in the previous quarter. The NCR saw a 5.4 percent decrease, while AONCR recorded a 13.7 percent decline.
Despite these year-on-year contractions, quarter-on-quarter loan availments surged by 34.3 percent, driven by substantial increases in both the NCR and AONCR. This trend aligns with the Senior Bank Loan Officers’ Survey (SLOS), indicating stable housing loan credit standards.
The BSP noted that single-detached/attached house loans experienced the most significant year-on-year decline, with a 36.2 percent contraction nationwide. However, quarter-on-quarter figures showed improvements.
Townhouse loans saw a 13.9 percent year-on-year decline, primarily due to AONCR. Condominium unit loans, conversely, grew by 7.5 percent year-on-year and a substantial 74.4 percent quarter-on-quarter, with AONCR showing a very large increase.
The average appraised value of new housing units in the Philippines reached ₱104,369 per square meter in the fourth quarter, reflecting significant year-on-year and quarter-on-quarter growth.
The NCR's average appraised value was ₱143,059 per square meter, while AONCR's was ₱81,983.
Single-detached/attached houses continued to hold the largest weight in the Residential Real Estate Price Index (RREPI), followed by condominium units and townhouses.