Residential property prices increase by 4.4 percent year-on-year in Q3 2018
Residential real estate prices were higher by 4.4 percent year-on-year in Q3 2018 as the Residential Real Estate Price Index (RREPI) increased to 116.5 from 111.6 for the same quarter a year ago. Year-on-year (YoY) prices of townhouses, condominium units, and single detached housing units grew by 18.3 percent, 5.8 percent, and 0.2 percent, respectively. Similarly, prices of duplex units (which account for only 0.76 percent of total new housing units reported) also rose by 30.7 percent year-on-year. Quarter-on-quarter, the RREPI edged lower by 0.6 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 went up by 6.8 percent and 2.2 percent, respectively, compared to year-ago prices. In NCR, price increases were observed across all types of housing units. Meanwhile, the growth in prices of townhouses, duplex housing units, and condominium units outweighed the slight decline in prices of single detached houses in AONCR.
Profile of residential real estate loans for Q3 2018
For Q3 2018, seven in ten (71 percent) residential real estate loans (RRELs) were for the acquisition of new housing units. By type of housing unit, 53.2 percent of residential property loans were for the purchase of condominium units, followed by single detached units (38.3 percent), and townhouses (7.6 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 57.4 percent of the total number of RRELs granted during the quarter, followed by AONCR - CALABARZON (23.4 percent), Central Luzon (5 percent), Central Visayas (4.2 percent), Western Visayas (3.3 percent), Davao Region (2.4 percent), and Northern Mindanao (1.4 percent). Together, the NCR and the six other regions accounted for 97.1 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 44 U/KBs and 54 TBs) submitted their Q3 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.