Residential real estate prices rise 1.8 percent in Q3 2017
Residential real estate prices went up by 1.8 percent in Q3 2017, as the Residential Real Estate Price Index (RREPI) rose to 111.6 from 109.6 for the same quarter a year ago. Year-on-year, prices of townhouses and condominium units grew faster at 7.3 percent and 3.6 percent compared to the previous quarter, respectively. Meanwhile, prices of single detached housing units grew at a slower rate of 0.8 percent.1 Quarter-on-quarter, the RREPI remained broadly steady. The RREPI measures the average change in prices of various types of housing units comprising of single detached/attached house, duplex, townhouse, and condominium unit based on data from housing loans granted by universal, commercial, and thrift banks.
Residential property prices increase in both National Capital Region (NCR) and Areas Outside NCR
The average residential property prices in both NCR and AONCR also increased by 2.2 percent and 1.8 percent compared to year-ago prices, respectively. In NCR, the higher growth in prices of townhouses and condominium units offset the decline in prices of single detached houses and duplexes. In AONCR, prices of single detached houses, townhouses, and condominium units grew while that of duplexes declined.
Profile of residential real estate loans for Q3 2017
For Q3 2017, about eight in ten (76.7 percent) real estate loans were for the purchase of new housing units. By type of housing unit, 48 percent of residential property loans were for the acquisition of condominium units, followed by single detached units (40.8 percent) and townhouses (10.8 percent). By area, condominium units were the most common house purchases in NCR while single detached houses were prevalent in AONCR. By region, NCR accounted for 47.4 percent of the total number of residential real estate loans granted during the quarter, followed by CALABARZON (29 percent), Central Luzon (6.4 percent), Central Visayas (5.2 percent), Western Visayas (4.3 percent), Davao Region (3 percent) and Northern Mindanao (1.6 percent). Together, these seven regions accounted for 96.9 percent of total housing loans granted by banks.
About the report
Under BSP Circular No. 892 dated 16 November 2015, the BSP requires all universal/commercial banks (UBs/KBs) and thrift banks (TBs) in the Philippines to submit a quarterly report on all Residential Real Estate Loans (RRELs) granted for the generation of the RREPI. Out of the 100 banks covered, 99 banks or 99 percent (consisting of 43 U/KBs and 56 TBs) submitted their reports to the BSP which cover the third quarter of 2017. The RREPI, which is estimated every quarter based on housing loans granted by banks, is a first in the Philippines and is expected to provide a valuable tool in assessing the real estate and credit market conditions in the country. The RREPI is computed as weighted chain-linked index based on the average appraised value per square meter weighted by the share of floor area of new housing units.
1Prices of duplex units (which account for only 0.3 percent of total new housing units reported) declined by 8.6 percent year-on-year.