Residential real-estate prices continued to accelerate in the fourth quarter of 2016, but the pace of its expansion slowed down significantly during the period.
The Bangko Sentral ng Pilipinas (BSP) said the residential real-estate price index (RREPI) launched in 2016 rose to only 113.9, from 113.4 the previous quarter.
The RREPI measures the average change in prices of the different types of housing units.
The RREPI is based on the banks’ approved housing-loan applications.
The fourth-quarter report show residential real-estate prices slowing significantly in the October-to-December quarter at 0.3 percent, from 2.2-percent increase a quarter earlier.
Deputy BSP Governor for the Monetary Sector Diwa C. Guinigundo said demand remains upbeat despite the considerable deceleration of real-estate residential property prices during the period.
“There is a strong domestic demand in the Philippines for both residential and commercial properties. We have a large shortage of housing units supported by a big base of young, employed people, especially in the services sector. As the economy continues to grow, demand for commercial space will be sustained,” Guinigundo said.