Residential property values eased by 4.6 percent in the second quarter of 2017 from a year earlier, the Bangko Sentral ng Pilipinas (BSP) reported, driven by the drop in prices of single detached houses.
The Residential Real Estate Price Index (RREPI) declined to 116.6 in the April to June period from 122.2 a year earlier, the central bank said on Friday.
While prices of condominium units and townhouses grew by 5.1 percent and 2.9 percent, respectively, single detached houses posted a 9.9 percent drop from the previous quarter.
“[A]verage residential property prices in NCR (National Capital Region) increased by 2.5 percent while those of AONCR (areas outside Metro Manila) declined by 8.2 percent in Q2 2017 compared to year-ago prices,” the Bangko Sentral noted.
Higher condominium prices offset declines for both single detached houses and townhouses in Metro Manila. For the rest of the country, cheaper single detached houses outweighed price hikes for both condominium units and townhouses.
By region, NCR accounted for 44.9 percent of the residential real estate loans granted in the second quarter, followed by Calabarzon (28.9 percent), Central Luzon (6.7 percent), Central Visayas (5.7 percent), Western Visayas (5.7 percent), Davao Region (3.1 percent) and Northern Mindanao (1.3 percent).
“Together, these seven regions accounted for 96.3 percent of the total housing loans granted by banks,” the Bangko Sentral said.
About eight out of 10 residential real estate loans granted were for the purchase of new houses.
By type, about 45.3 percent of residential property loans were for single detached units followed by condominiums (44.8 percent) and townhouses (9.6 percent).
By area, condominiums were the most common house purchase in Metro Manila while single detached houses were the top choice in areas outside the metropolis.
The RREPI measures the average change in the prices of different types of housing units over a period of time across different geographical regions and growth rate recorded indicates price inflation.