Property prices decline for first time since 2016
Residential real estate prices of various types of new housing units in the Philippines declined marginally in the third quarter of the year as demand was impacted by the coronavirus pandemic, according to the central bank.
In a statement, the Bangko Sentral ng Pilipinas said the average value of homes across the country contracted by 0.4 percent during the July-September period based on the latest Residential Real Estate Price Index.
A similar trend was observed quarter-on-quarter with the pricing indicator declining by 14.1 percent.
“This is the first time that the [price index] posted negative [annual] growth since the start of the series in the first quarter of 2016,” the agency said. “The decline in the real estate price index may be partly due to the weak consumer demand for houses and lots.”
It added that the results were consistent with the outcome of the third quarter 2020 Consumer Expectations Survey, which pointed to the low preference of consumers to buy real estate property amid the pandemic and economic uncertainty.
Residential property prices in Metro Manila declined by 12.2 percent relative to a year ago, while prices outside the metropolis grew by 6.4 percent.
In the National Capital Region, the decrease in prices of condominium units and duplexes outweighed the increase in prices of single detached/attached houses and townhouses. Meanwhile, prices outside the metropolis rose across all types of housing units, except for the prices of duplexes in the same period.
The change in residential property prices by type of housing units was mixed in the third quarter.
Prices of condominium units and duplexes fell during this period relative to 2019 levels by 15 percent and 8.8 percent, respectively. By contrast, townhouses and single detached or attached houses recorded a growth in prices at 12 percent and 7.4 percent, respectively, for the same period.
Meanwhile, the quarterly decline in property values was accounted for by lower prices of condominium units and single detached or attached houses that more than offset the price increases of duplexes and townhouses. Notably, for both periods, the price of condominium units contracted.
In the third quarter, the number of real estate loans granted for all types of new housing units in the nation declined by 43.3 percent year on year, but rose by 59.7 percent on a quarter-on-quarter basis.
The average appraised value per square meter of new housing units in the country contracted by 18.3 percent on an annual basis and 35.6 percent quarterly. Negative annual and quarterly growth rates were recorded in Metro Manila.
Outside the metropolis, the average appraised value per square meter of new properties increased annually, but decreased quarterly.
By type of new housing units, single detached or attached houses and townhouses registered higher average appraised values, while lower appraised values were observed for condominium units and duplexes. INQ
