Residential real-estate prices up 3.1% in Q1, BSP data shows

RESIDENTIAL real-estate prices grew steadily in the first quarter of this year, data from the Bangko Sentral ng Pilipinas (BSP) showed. 

In their Residential Real Estate Price Index (RREPI) report published over the weekend, the Central Bank said residential real-estate prices grew 3.1 percent in the first quarter of the year compared to the same quarter in 2018. 

The actual index—which measures the average change in the prices of various types of housing units comprised of single detached houses, duplexes, townhouses, and condominium units, based on data from housing loans granted by universal, commercial, and thrift banks—increased to 119.9 from 116.3 for the same quarter a year ago. 

The rise in the residential real-estate prices stemmed mainly from the higher prices of condominium units and townhouses in the country. 

In particular, the prices of condominium units grew 10.9 percent over a year while townhouse prices expanded by 9.6 percent from the first quarter last year. 

Meanwhile, prices of single detached housing units decreased by 1.7 percent. Similarly, prices of duplex units also declined by 8 percent year-on-year. 

By area, both places inside the National Capital Region, as well as in the provinces reported higher prices of real-estate values during the period. NCR residential real-estate prices, however, grew faster at 8.7 percent while areas outside NCR grew 0.4 percent during the period. 

Broken down, in NCR, the rise in the average residential property prices was largely due to the increase in the prices of condominium units. In areas outside NCR, all types of housing units registered price increases, except for single detached houses, which recorded a decline. 

The RREPI, which is estimated every quarter and based on housing loans granted by banks, is a BSP initiative that provides a tool in assessing the real estate and credit market conditions in the country. It is computed as a weighted chain-linked index that is based on the average appraised value per square meter weighted by the share of floor area of new housing units.

By area, most of the residential real-estate loans granted in the NCR were for the purchase of condominium units, while loans granted in areas outside NCR were for single detached houses. 

By region, NCR accounted for 42.5 percent of the total number of residential real-estate loans granted during the quarter, followed by Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) with 28.5 percent, Central Luzon at 9.1 percent, Central Visayas at 6.5 percent, Western Visayas  at 4.4 percent, Davao region at 2.6 percent and Northern Mindanao at 2 percent). Together, NCR and these six other regions accounted for 95.6 percent of total housing loans granted by banks.