Residential real estate prices up 6.5% in third quarter

Residential real estate prices of various types of new housing units in the Philippines increased 6.5 percent year-on-year and 4.6 percent quarter-on-quarter in the third quarter of 2022, according to the Bangko Sentral ng Pilipinas (BSP).

By area, residential property prices in the National Capital Region and areas outside NCR increased by 17.5 percent and 2.3 percent, respectively, driven by the increase in the prices of condominium units and single-detached/attached houses, which outweighed the decrease in the prices of townhouses.

On a quarterly basis, residential property prices rose 14.6 percent in the NCR, but contracted by 0.4 percent in the rest of the country. 

Prices of duplex housing units, condominium units, and single-detached/attached houses contributed to the year-on-year growth, rising by 26.7 percent, 19.2 percent, and 9.8 percent, respectively. Meanwhile, prices of townhouses declined by 16.3 percent.

The 4.6 percent quarter-on-quarter growth in the residential real estate price index may be attributed to the higher prices of condominium units (by 12.0 percent), duplex housing units (by 3.4 percent), and single-detached/attached houses (by 2.7 percent). 

In the third quarter, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines fell by 4.2 percent year-on-year.  RRELs in the NCR and areas outside NCR contracted by 2.0 percent and 5.7 percent, respectively. 

By contrast, the nationwide availment of housing loans rose by 19 percent quarter-on-quarter, following the 32.0 percent and 11.5 percent growth in RRELs in the NCR and AONCR, respectively.

The average appraised value of new housing units in the country was P84,589 per square meter (sqm) in the third quarter. The average appraised value per sqm in the NCR was P139,283, higher than both the national average and the average appraised value in areas outside AONCR at P47,129.

The weight of each type of housing unit in the RREPI is determined by dividing the total floor area (in sqm) of a specific type of housing unit over the total floor area of all housing types. In Q3 2022, single-detached/attached houses in the RREPI continued to constitute the largest weight at 58.0 percent. Meanwhile, condominium units, townhouses, and duplex housing units accounted for 24.5 percent, 17.0 percent, and 0.4 percent, respectively.

About 82.2 percent of residential real estate loans (RRELs) were used to purchase new housing units. Meanwhile, by type of housing unit, most of the residential property loans were used for the acquisition of single-detached/attached houses (47.5 percent), followed by condominium units (39.0 percent) and townhouses (13.0 percent).

Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in the AONCR were for the purchase of single-detached/attached houses. 

By region, 37.1 percent of the total number of RRELs granted were from the NCR, while the balance was from CALABARZON (32.3 percent), Central Luzon (11.1 percent), Central Visayas (6.7 percent), Western Visayas (4.8 percent), Davao Region (2.8 percent), and Northern Mindanao (1.5 percent). 

RREPI is a measure of the average change in the prices of various types of housing units, i.e., single-detached/attached houses, duplex housing units, townhouses, and condominium units, based on banks’ data on actual mortgage loans granted to acquire new housing units only. 

It is a chain-linked index, which is 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 used as an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since June 2016.

Among the residential housing properties purchased using RRELs in the third quarter, 16.9 percent were pre-owned, while 0.9 percent were foreclosed properties.

Tags:

Real estate is no longer just Location, Location, Location. 
Now, it’s about Location, Information…and Timing! 

- Alejandro Manalac, Executive Publisher
 

View all posts

Leave a Comment

Subscribe to our Newsletter for Free!

Subscribe to our newsletter to receive the latest real estate news.