Housing prices rise 2.7% in second quarter of 2024

Residential real estate prices in the Philippines continued to increase in the second quarter of 2024. Prices rose 2.7% year-on-year, though at a slower pace than the 6.1% growth in the first quarter. Quarter-on-quarter, prices grew faster at 1.8% compared to the 1.1% growth in the first quarter.

In the National Capital Region (NCR), residential property prices contracted 1.0% year-over-year due to declining prices of single-detached/attached houses. Prices of townhouses and condominium units increased.

Outside the NCR (AONCR), prices rose 4.2%, driven by increases in duplex housing units, single-detached/attached houses, and condominium units, which outweighed the decline in townhouse prices.

Quarter-over-quarter, prices in the NCR and AONCR rose 3.8% and 1.2%, respectively.

By housing type (excluding duplex units), condominium prices registered the highest year-over-year growth at 10.6% in the second quarter, followed by a 1.7% increase in single-detached/attached houses. Townhouses contracted 0.8%.

Quarter-on-quarter price changes were mixed. Condominium prices grew the fastest at 4.2%, followed by single-detached/attached houses at 3.2%. Duplex housing units and townhouses declined 2.3% and 2.6%, respectively.

In the second quarter, the number of residential real estate loans (RRELs) granted for new housing units contracted 3.5% year-over-year. Loans in the NCR decreased 9.2%, while those in AONCR declined marginally by 0.8%. Quarter-over-quarter, nationwide housing loan availments fell 15.1%.

The total number of RRELs granted decreased 3.2% year-over-year, reflecting contractions in both the NCR and AONCR. The total number of transactions decreased 9.9% quarter-over-quarter.

The appraised value of new housing units averaged %u20B183,759 per square meter (sqm) in the second quarter, registering 6.8% and 1.8% growth rates year-over-year and quarter-over-quarter, respectively. In the NCR, the average appraised value per sqm increased 9.6% year-over-year and 5.6% quarter-over-quarter to %u20B1140,158 per sqm. In AONCR, the average appraised value per sqm expanded 7.8% year-over-year but declined 4.0% quarter-over-quarter to %u20B158,741.

Single-detached/attached houses continued to constitute the largest weight in the RREPI at 49.3%. Townhouses, condominium units, and duplex housing units accounted for 25.9%, 24.4%, and 0.4%, respectively.

In the second quarter, 78.7% of RREL transactions were used to purchase new housing units. Most of the residential property loans were used for the acquisition of single-detached/attached houses (47.9%), followed by condominium units (32.5%) and townhouses (19.3%).

Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in AONCR were for the purchase of single-detached/attached houses. By region, 29.7% of the total number of RRELs granted were from the NCR. The other regions that contributed significantly were CALABARZON (30.1%), Central Luzon (13.0%), Central Visayas (8.0%), Western Visayas (7.0%), Davao Region (4.4%), and Northern Mindanao (3.3%). These regions, including the NCR, comprised 95.5% of the total housing loans granted by banks.  

The RREPI is a measure of the average change in the prices of various types of housing units, based on banks' data on actual mortgage loans granted to acquire new housing units. It is a chain-linked index computed using the average appraised value per square meter, weighted by the share of floor area of each type of housing unit to the total floor area of all housing units.  

The RREPI is an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since June 2016.