Residential prices up 6.1% in first quarter of 2024

Residential real estate prices in the Philippines rose 6.1 percent year-on-year (YoY) in the first quarter of 2024, following a 6.5-percent in the fourth quarter of 2023.

The Philippine Statistics Authority said that on a quarter-on-quarter (QoQ) basis, prices rebounded by 1.1 percent after a 3.6-percent decline in the fourth quarter.

Prices in the National Capital Region (NCR) rose 2.8 percent YoY in Q1 2024. This increase was driven by townhouses and condominiums, which outweighed a decline in single-detached/attached houses.

Areas Outside the NCR (AONCR) saw a sharper increase of 7.4 percent YoY, with all housing types experiencing annual growth. However, QoQ growth was stronger in AONCR (4.1 percent) compared to the NCR (-5.6 percent).

Prices by housing type

Condominiums led the YoY growth rate in Q1 2024 at 10.2 percent, followed by townhouses (5.6 percent) and single-detached/attached houses (5.1 percent). All housing types also saw QoQ price increases, with townhouses leading the growth (4.4 percent).

Loans and transactions

The number of residential real estate loans (RRELs) granted increased 8.9 percent YoY in Q1 2024. However, nationwide housing loan availments fell 24.2 percent QoQ due to a decline in both NCR and AONCR.

The total number of RRELs granted rose 5 percent YoY, with growth in AONCR offsetting a decline in the NCR. The total number of transactions decreased 23.2 percent QoQ for similar reasons.

Appraised values

The average appraised value per square meter (sqm) for new housing units in the Philippines was Php82,260 in Q1 2024, reflecting an 11.6 percent YoY increase. The NCR saw a 7.9 percent YoY increase in average appraised value per sqm, while AONCR saw an 18.9 percent YoY increase.

RREPI breakdown

Single-detached/attached houses remained the largest component of the Residential Real Estate Price Index (RREPI) in Q1 2024, accounting for 52.4 percent. Condominium units, townhouses, and duplexes followed at 25.3 percent, 22.1 percent, and 0.3 percent, respectively.

Regional distribution

Of all RREL transactions in Q1 2024, 83.5 percent were used to purchase new housing units. Single-detached/attached houses were the most popular type financed (43 percent), followed by condominiums (34.7 percent) and townhouses (22 percent).

The NCR saw most RRELs used for condominium purchases, while AONCR favored single-detached/attached houses. NCR accounted for 26.3 percent of all RRELs granted. Other significant contributors were CALABARZON (34 percent), Central Luzon (13.3 percent), Western Visayas (6.6 percent), Central Visayas (6.1 percent), Davao Region (4.8 percent), and Northern Mindanao (2 percent). These regions, along with NCR, comprised 93.1 percent of total housing loans granted by banks.

The RREPI is a measure of average price changes for various housing types based on banks' data on actual mortgage loans granted for new housing units. It is a chain-linked index using average appraised value per sqm, weighted by the share of floor area for each housing type. The BSP releases the RREPI report to assess real estate and credit market conditions.