Average prices of residential properties across the Philippines continued to rise in the first quarter of the year, led by the continued appreciation of high rise apartment units in and around the capital, according to the latest report from the central bank.
“By area, average residential property prices increased in both the National Capital Region and [areas outside the capital] by 8.7 percent and 0.4 percent, respectively,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
“In [Metro Manila area], the rise in the average residential property prices was largely due to the increase in the prices of condominium units,” it noted, adding that, in areas outside the metropolis, all types of housing units registered price increases, except for single detached houses, which recorded a decline.
The central bank said real estate prices for homes of various types increased by an average of 3.1 percent year-on-year in the first three months of 2019, with the Residential Real Estate Price Index—which measures the average change in the prices of various types of housing units comprised of single detached houses, duplexes, townhouses and condominium units, based on data from housing loans granted by universal, commercial and thrift banks—increasing to 119.9 from 116.3 for the same quarter a year ago.
“Prices of condominium units and townhouses increased by 10.9 percent and 9.6 percent, respectively,” said the regulator, which closely monitors property prices and banks’ corresponding loan exposures to the sector.
On a quarterly basis, the property price index also rose by 1.6 percent, with prices of single detached housing units decreasing by 1.7 percent. Prices of duplex units (which account for only 0.5 percent of total new housing units reported) also declined by 8 percent.
For the first quarter of 2019, 74 percent of residential real estate loans were for the acquisition of new housing units. By type of housing unit, 46.2 percent of residential property loans were for the purchase of single detached units, followed by condominium units (44.5 percent) and townhouses (8.6 percent).
By area, most of the real estate loans granted in Metro Manila were for the purchase of condominium units, while property loans granted outside the capital were for single detached houses.
By region, Metro Manila accounted for 42.5 percent of the total number of loans granted during the quarter.