Manila—(PHStocks)—Bangko Sentral ng Pilipinas (BSP)—Residential real estate prices went up by 1.1 percent in the first quarter of 2017, as the Residential Real Estate Price Index (RREPI) rose to 117.2 from 115.9 for the same quarter a year ago.
The year-on-year growth in residential real estate prices in 1Q 2017 was slightly higher compared to the 0.3 percent increase registered a quarter ago. The growth in prices of condominium units was faster at 2.7 percent (from 1.8 percent in 4Q 2016) year-on-year while those of single detached units edged higher at 0.4 percent, recovering from a 1 percent decline in the previous quarter.
Meanwhile, those of townhouses slowed down to 1.3 percent (from 6.2 percent a quarter ago). RREPI measures the average change in prices of various types of housing units comprising of single detached/attached house, duplex, condominium, and townhouse based on data from housing loans granted by commercial, universal, and thrift banks.
RREPI in the National Capital Region (NCR) and Areas Outside NCR grow at a similar pace
The average residential property prices in both NCR and AONCR also increased by 1.1 percent in 1Q 2017 compared to year-ago prices. In NCR, growth in real estate prices reverted to positive territory from a negative growth in 4Q 2016 while those in AONCR moderated for the same period.
In NCR, the higher growth in prices of single detached houses and townhouses outweighed the slower increase in prices of condominium units. Meanwhile, in AONCR the double digit increase in prices of condominium units offset the slight decline in prices of single detached houses and townhouses.
Profile of residential real estate loans for Q1 2017
For 1Q 2017, about seven in 10 real estate loans were for the purchase of new housing units (69 percent). By type of housing unit, 48.4 percent of residential property loans were for the acquisition of condominium units, followed by single detached units (43.3 percent) and townhouses (7.9 percent). The number of loans granted increased for all types of housing units compared to their year-ago levels, with condominium units posting the highest growth of 26.9 percent.
By area, condominium units were the most common house purchases in NCR while single detached houses were prevalent in AONCR. By region, NCR accounted for 44.8 percent of the total number of residential real estate loans granted during the quarter, followed by CALABARZON (29.3 percent), Central Luzon (6.7 percent), Central Visayas (5.7 percent), Western Visayas (5.1 percent), Davao Region (3.2 percent) and Northern Mindanao (1.5 percent). Together, these seven regions accounted for 96.3 percent of total housing loans granted by banks.