Debt watcher Fitch Ratings sees no signs of the Philippines real estate sector overheating. It thinks the asset quality in the country remains benign amid the rise in property prices.
In a report released on Wednesday, Fitch said property prices are an important macro-prudential risk indicator, and excessive price inflation can be a sign of over-heating fueled by speculation, leading to elevated risks to bank asset quality and profitability.
“For now, this does not appear to be the case in the Philippines and asset quality remains benign amid what appears to be sustainable price appreciation,” it said.
The credit rater’s analysis was based on the recently released results of the central bank’s maiden Residential Real Estate Price Index survey. MAYVELIN U. CARABALLO