Residential real estate prices increase by 4.8 percent year-on-year in Q2 2018
Residential real estate prices rose by 4.8 percent year-on-year in Q2 2018 as the Residential Real Estate Price Index (RREPI) increased to 117.2 from 111.8 for the same quarter a year ago. Year-on-year (YoY), prices of townhouses, condominium units, and single detached housing units grew by 13.3 percent, 9.1 percent and 0.8 percent, respectively. Meanwhile, prices of duplex units (which account for only 0.36 percent of total new housing units reported) declined by 4.4 percent year-on-year. Quarter-on-quarter, the RREPI edged higher by 0.8 percent. The RREPI measures the average change in prices of various types of housing units comprising of single detached house, duplex, townhouse, and condominium unit based on data from housing loans granted by universal, commercial, and thrift banks.
Residential property prices higher in both the National Capital Region (NCR) and Areas Outside NCR (AONCR)
The average residential property prices in both NCR and AONCR climbed by 5.1 percent and 4.1 percent compared to year-ago prices, respectively. In NCR, the growth in prices of condominium units and townhouses outweighed the decline in prices of single detached houses and duplexes. Meanwhile, all types of housing units in AONCR registered price increases.
Profile of residential real estate loans for Q2 2018
For Q2 2018, about seven in ten (77.1 percent) residential real estate loans (RRELs) were for the acquisition of new housing units. By type of housing unit, 46.1 percent of residential property loans were for the purchase of condominium units, followed by single detached units (45.6 percent) and townhouses (7.8 percent). By area, majority of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in AONCR were for single detached houses. By region, NCR accounted for 45.2 percent of the total number of RRELs granted during the quarter, followed by AONCR - CALABARZON (27.9 percent), Central Luzon (6.9 percent), Central Visayas (5.9 percent), Western Visayas (5 percent), Davao Region (3.5 percent) and Northern Mindanao (1.7 percent). Together, the NCR and the six other regions accounted for 96.1 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 RRELs granted for the generation of the RREPI. All covered banks (consisting of 43 U/KBs and 55 TBs) submitted their Q2 2018 reports to the BSP. The RREPI, which is estimated every quarter and 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.