The residential real estate prices of various types of new housing units in the Philippines continued to rise in the second quarter, albeit slower than the previous quarter’s year-on-year growth. However, housing prices recovered from the quarter-on-quarter contraction in Q1 2022.
The Residential Real Estate Price Index (RREPI) rose by 2.6 percent and 1.6 percent compared with year-ago and quarter-ago levels, respectively.
Residential property prices in the NCR grew by 6.3 percent, primarily driven by the increase in the prices of townhouses and condominium units, which outweighed the decrease in the prices of single-detached/attached houses.
Similarly, property prices in the areas outside NCR rose by 2.2 percent as all types of housing units registered an upturn, except for townhouses, which declined marginally.
On a quarter-on-quarter basis, residential property prices rose by 0.2 percent and 2.2 percent in the NCR and AONCR, respectively.
In Q2 2022, all types of housing units contributed to the YoY growth in the nationwide RREPI as the prices of duplex housing units, condominium units, townhouses, and single-detached/attached houses increased by 11.3 percent, 8.6 percent, 4.1 percent, and 0.8 percent, respectively.
Meanwhile, the 1.6 percent growth in the RREPI may be attributed to the higher prices of single-detached/attached houses, duplex housing units and condominium units.
In Q2 2022, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines increased by 6.5 percent due largely to the 17 percent growth in the AONCR, outweighing the 7.7 percent contraction in the NCR.
The average appraised value of new housing units in the country stood at P73,751 per square meter in Q2 2022.
The average appraised value per sqm in the NCR was at P119,841, higher than the average appraised values of P73,751 and P47,094 in the nation and AONCR, respectively.
In Q2 2022, 82.6 percent of residential real estate loans (RRELs) were used to purchase new housing units.
Meanwhile, by type of housing unit, most of the residential property loans were used for the acquisition of single-detached/attached houses (49.4 percent), followed by condominium units (37 percent) and townhouses (13 percent) as seen in Figure 6.
Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in the AONCR were for the purchase of single-detached/attached houses.
