Economy · June 23, 2022

BSP: Home prices continued to rise in the first quarter

RESIDENTIAL property prices continued to rise in the first quarter of the year, the Bangkok Sentral ng Pilipinas (BSP) reported on June 23.

The central bank said the country’s residential property price index, or RREPI, updated quarterly by the BSP, jumped 5.6% in the first three months of the year from its level a year ago.

“The year-over-year (YoY) increase in the RREPI is consistent with the results of the Consumer Expectations Survey (CES) for the first quarter of 2022, which showed a higher percentage of consumers preferring to buy real estate in the first quarter of 2022”, the BSP said in a statement.

By area, residential property prices in the National Capital Region (NCR) increased 9.5%. The increase, according to the central bank, is mainly driven by the increase in the prices of condominium units and townhouses, which more than compensated for the drop in prices of duplex units and single-family houses.

Likewise, property prices in areas outside the NCR rose 5 percent as all housing types recovered, with the exception of single-family / terraced homes, which saw a decline.

By type of housing units, the prices of terraced houses, duplex housing units and condominium units increased during the period. Row houses, in particular, recorded the highest increase with 25.6 percent, followed by duplex housing units at 20.9 percent and condominium units at 14.7 percent.

By contrast, the prices of single-family and / or outbuildings fell by 2.5 percent.

Due to rising property prices, fewer people took out real estate loans during the period.

The number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines decreased by 9.2%, mainly due to the 39.3% decrease in the number of NCR RRELs.

During the quarter, nearly three quarters (74.3%) of residential real estate loans were used for the purchase of new housing units.

Meanwhile, by type of housing unit, most residential real estate loans were used for the purchase of single-family and / or annex houses (47 percent), followed by condominium units (38 percent) and townhouses ( 14.4 per cent).