THE increase in real-estate prices recorded a 6-month low in the fourth quarter of 2023, according to the Residential Real Estate Price Index (RREPI) released by the Bangko Sentral ng Pilipinas (BSP).
The latest data showed real estate prices slowed to 6.5 percent in the fourth quarter of 2023. This is the same rate in the third quarter of 2023 and was the lowest since the 2.6 percent posted in the second quarter of 2023.
BSP also said the growth in real estate prices was slower than the 12.9 percent posted in the third quarter of 2023.
The data also showed on a quarter-on-quarter (QoQ) basis, the index contracted by 3.6 percent, which is a reversal of the 3.4-percent growth registered in the third quarter of 2023.
Real estate prices in Metro Manila grew 4.3 percent in the last quarter of 2023 as higher prices of single-detached/attached houses and townhouses outweighed the decline in the prices of condominium units.
The data showed residential property prices in Areas Outside the NCR (AONCR) grew by 7.8 percent, driven by annual increases in the prices of all types of housing units, except for duplex housing units where growth contracted.
Given the increase in real estate prices, the BSP said the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines grew by 30.5 percent year-on-year.
Data by the central bank also showed nationwide housing loan availments continued to grow by 26.9 percent on a quarter-on-quarter basis.
RRELs in NCR or Metro Manila surged 38.5 percent while the same posted a growth of 26.6 percent in AONCR.
The BSP said the total number of RRELs granted in the Philippines rose by 25.2 percent. The pace of growth was almost the same in NCR at 25.8 percent and AONCR at 25 percent.
The total number of transactions grew by 14.4 percent on a quarterly basis due to the 10.5 percent and 16.2 percent increase in the number of RRELs in the NCR and AONCR, respectively.
“(Majority or) 84.5 percent of residential real estate loan (RRELs) transactions were used to purchase new housing units,” the BSP said.
Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in AONCR were for the purchase of single-detached/attached houses.
On a regional basis, Calabarzon topped the number of RRELs granted at 33.1 percent followed by Central Luzon at 12 percent and Western Visayas at 5.8 percent.
The data also showed these were followed by Central Visayas at 5.3 percent; Davao Region, 5.2 percent; and Northern Mindanao Region, 1.9 percent.
“The said regions, including the NCR, comprised 94 percent of the total housing loans granted by banks,” BSP said.
Meanwhile, the appraised value of new housing units in the country in the fourth quarter last year averaged to P89,042 per square meter (sqm).
This represented a 19.1-percent growth over the comparable year-ago level as opposed to the 3.4 percent contraction from the quarter-ago level.
Further, the average appraised value per sqm in the NCR increased by 5.5 percent year on year but declined by 14.3 percent quarter on quarter to P134,178 per sqm.
Meanwhile, in AONCR, the average appraised value per sqm expanded by 31.8 percent year on year and 18.1 percent quarter on quarter to P65,186.
“It may be noted that the average appraised value of properties in the NCR is double that of AONCR,” BSP said.
The 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 (excluding pre-owned or foreclosed properties).
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