Residential real estate prices moderate in Q2

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    Residential real estate prices grew marginally by 0.4 percent year-on-year (y-o-y) in the second quarter of this year, dta from the Bangko Sentral ng Pilipinas shoeed.

    This is reflected in the increase in Residential Real Estate Price Index (RREPI), which rose to 117.5 from 117 in Q2 2018.

    The year-on-year prices across types of housing units increased, except for single detached/attached houses, which declined by 4.2 percent.

    Prices of duplexes, condominium units, and townhouses (which collectively accounted for 58.7 percent of total new housing units reported) grew by 12.5 percent, 9.6 percent, and 4.3 percent, respectively, compared to Q2 2018.

    Quarter-on-quarter (q-o-q), the RREPI edged lower to 117.5 from 120, a 2.1 percent decline, as all types of housing units registered price decreases, except for condominium units, which recorded a growth.

    By area, the average residential property prices in NCR increased by 5.2 percent, while those of areas outside NCR declined by 1.1 percent in Q2 2019 compared to Q2 2018 prices.

    In NCR, the higher growth in prices of duplexes and condominium units offset the decline in prices of single detached houses and townhouses.

    In AONCR, the drop in prices of single detached houses outweighed the increase in prices of other types of housing units.

    73.4 percent of residential real estate loans (RRELs) were for the acquisition of new housing units.

    By type of housing units, 45.8 percent of residential property loans were for the purchase of condominium units, followed by single detached/attached houses and townhouses.

    By area, most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in AONCR were mostly for single detached/attached houses.

    By region, NCR accounted for 43 percent of the total number of RRELs granted, followed by AONCR—CALABARZON (27.4 percent), Central Luzon (8.9 percent), Central Visayas (6 percent), Western Visayas (4.3 percent), Northern Mindanao (3.3 percent), and Davao Region (3 percent).

    Together, NCR and these six other regions accounted for 95.9 percent of total housing loans granted by banks.

    BSP Circular No. 892 dated 16 November 2015 requires all universal/commercial banks (UBs/KBs) and thrift banks (TBs) in the Philippines to submit to BSP a quarterly report on all RRELs granted for the generation of the RREPI.