Residential real estate prices higher by 2.1 percent in Q1 2018
Residential real estate prices increased by 2.1 percent year-on-year in Q1 2018 as the Residential Real Estate Price Index (RREPI) rose to 116.3 from 113.9 for the same quarter a year ago. Year-on-year (YoY), prices of townhouses and condominium units grew by 13.8 percent and 2 percent, respectively. Meanwhile, prices of single detached housing units declined slightly by 0.6 percent. Quarter-on-quarter, the RREPI declined marginally by 0.9 percent. 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 YoY in both National Capital Region (NCR) and Areas Outside NCR (AONCR)
The average residential property prices in both NCR and AONCR rose by 2.7 percent and 0.9 percent compared to year-ago prices, respectively. In NCR, the higher growth in prices of condominium units, townhouses, and duplexes offset the decline in prices of single detached houses. Meanwhile, the higher increase in prices of townhouses and duplexes in AONCR, outweighed the decrease in prices of single detached houses and condominium units.
Profile of residential real estate loans for Q1 2018
For Q1 2018, about seven in ten (73.5 percent) residential real estate loans were for the purchase of new housing units. By type of housing unit, 48.9 percent of residential property loans were for the acquisition of condominium units, followed by single detached units (43.2 percent) and townhouses (7.6 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 48.3 percent of the total number of residential real estate loans granted during the quarter, followed by AONCR - CALABARZON (25.5 percent), Central Luzon (7.1 percent), Central Visayas (5.5 percent), Western Visayas (4.3 percent), Davao Region (3.2 percent) and Northern Mindanao (1.8 percent). Together, these seven regions accounted for 95.7 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. All covered banks (consisting of 43 U/KBs and 55 TBs) submitted their Q1 2018 reports to the BSP. The RREPI, which is estimated every quarter based on housing loans granted by banks, is a first in the Philippines. It provides 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.
1 Prices of duplex units (which account for only 0.3 percent of total new housing units reported) increased by 44.2 percent year-on-year.