Home prices rose by 14.1 percent in the second quarter
CEBU, Philippines – Residential property prices in the Philippines rose in the second quarter of 2023, with notable increases in various housing types, according to a report by the Bangko Sentral ng Pilipinas (BSP).
BSP reported that residential property prices for various types of new residential units in the Philippines rose fastest in the second quarter of 2023 by 14.1 percent year-on-year (y-o-y) and 5.3 percent q-o-q (q-o-q). , from 10.2 percent. percent and 1.4 percent in the first quarter of 2023, respectively.
Year-on-year, residential property prices in the National Capital Region (NCR) and areas outside the National Capital Region (AONCR) rose by 15.4 percent and 13.8 percent, respectively, as prices of detached/attached houses, townhouses and condominiums rose. Annual positive increases
On a quarterly basis, residential property prices expanded by 7.7% in the NCR region and 4.4% in the AONCR region.
By housing type, prices of duplexes, detached/attached houses, townhouses and condominiums contributed positively to the annual growth of RREPI nationwide with indices rising by 24.6 percent, 18.3 percent, 14.7 percent and 5 percent. respectively.
Moreover, the quarter-on-quarter growth in the Residential Property Price Index of 5.3 percent was attributed to the rise in prices of all residential units, namely detached/attached houses (by 6.7 percent), duplexes (by 4.8 percent), and condominiums (by 3.8 percent). ) and townhouses (by 3.7 percent) (Figure 2).
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Real estate loans
During the second quarter, there was a notable 1% year-on-year decline in residential mortgage loan issuance for all categories of new residential units in the Philippines.
This decline was primarily driven by an 11.8 percent contraction in RRELs within the National Capital Region (NCR), which overshadowed the 5.3 percent growth in RRELs observed in areas outside the NCR (AONCR).
Likewise, when examined on a quarterly basis, there was a 4.2 percent decline in total national home loan allocations, a trend that followed the previous 6.3 percent decline in RRELs within AONCR regions.
The average assessed value of new residential units in the country was Php 78,444 per square meter in Q2 2023. The average assessed value per square meter in the National Capital Region was Php 127,884, which is higher than the national average and the average. The value is assessed in AONCR at Php 54,496.
The weight of each housing unit type in the RREPI is determined by dividing the total floor area (in square meters) of a given housing unit type by the total floor area of all housing types.
In the same period, detached/attached homes in the RREPI continued to make up the largest weight at 52.5 percent.
Meanwhile, condominiums, townhouses, and duplexes accounted for 23.7 percent, 23.2 percent, and 0.6 percent, respectively.
According to BSP Bank, 78.9 percent of RRELs transactions were used to purchase new housing units.
Meanwhile, by housing unit type, most residential mortgage loans were used to purchase detached/townhouses (49.1 percent), followed by condominiums (33.6 percent) and townhomes (16.8 percent).
Most of the real estate rights granted in the NCR were for the purchase of condominium units, while the real estate rights granted in the AONCR were for the purchase of single/attached homes.
By region, 29 percent of the total number of RRELs awarded was from the National Capital Region, while the balance came from AONCR as follows: Calabarzon (34.1 percent), Central Luzon (13.4 percent), Central Visayas (7.1 percent) , Western Visayas (5.7 percent), Davao Region (3.4 percent), and Northern Mindanao (1.8 percent). The NCR and the six aforementioned regions together accounted for 94.5 per cent of the total housing loans granted by banks.
RREPI data were obtained through BSP Circular No. 892 dated November 16, 2015, which requires all Universal/Commercial Banks (UBs/KBs) and Savings Banks (TBs) in the Philippines to submit to the BSP a quarterly report on all granted RRELs.
This was supplemented by BSP Circular No. 1154 dated 14 September 2022, which requires all digital banks (DBs) in the country to submit similar reports to the BSP. – (free man)