Residential real estate prices for various types of housing units, as measured by the Residential Real Estate Price Index (RREPI), rose by 10.4 percent year-on-year in Q3 2019, higher than the 0.4 percent growth on Q2 2019 and 4.5 percent a year ago, data from the Bangko Sentral ng Pilipinas showed.
BSP said this was also the highest growth rate observed since Q1 2016.
“The increase in property prices was evident across all types of housing units,” BSP added.
Prices of condominium units in the third quarter of last year registered the highest growth rate since Q1 2016 at 29.1 percent.
This was followed by duplexes at 24.8 percent, single detached/attached houses at 2.4 percent, and townhouses at 6 percent.
On a quarter-on-quarter basis, the RREPI rose by 9.5 percent, with all types of housing units registering price increases over the quarter.
Year-on-year residential property prices are higher in both the National Capital Region (NCR) and in areas outside NCR (AONCR).
The average residential property prices in Q3 2019 in both the NCR and AONCR increased by 22.2 percent and 4.9 percent, respectively, compared to year-ago prices.
In the NCR, the increase in prices of duplexes and condominium units outweighed the decline in prices of single detached houses and townhouses.
Meanwhile, price increases were observed across all types of housing in AONCR.
For Q3 2019, BSP said the purchase of new housing units accounted for 74 percent of residential real estate loans (RRELs).
By type of housing units, more than half or 51.8 percent of residential property loans were used for the acquisition of condominium units, followed by single detached/attached houses and townhouses.
Most of the RRELs granted in NCR were intended for the purchase of condominium units, while RRELs granted in AONCR were mostly obtained for the purchase of single detached/attached houses.
By region, NCR accounted for 48.7 percent of the total number of RRELs granted during the quarter, followed by AONCR―CALABARZON (25.1 percent), Central Luzon (7.6 percent), Central Visayas (6.5 percent), Western Visayas (3.6 percent), Davao Region (2.8 percent) and Northern Mindanao (2.3 percent).
Together, NCR and these six other regions accounted for 96.6 percent of total housing loans granted by banks.
The RREPI is a measure of the average change in the prices of various types of housing units—single detached/attached houses, duplexes, townhouses and condominium units—based on banks’ data on loans used to acquire new housing units.
It is a chain-linked index, which is computed using the average appraised value per square meter, weighted by the share of floor area of each type of housing unit to the total floor area of all housing units.
The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since Q1 2016.