Philippine residential property values grew 1.1 percent in the first quarter of 2017 from a year earlier, led by prices in Metro Manila and nearby areas, central bank data showed.
The Residential Real Estate Price Index (RREPI) rose to 117.2 in the January to March period this year from 115.9 in the same quarter in 2016, the Bangko Sentral ng Pilipinas (BSP) said in a statement released on Friday.
Year-on-year growth in residential real estate prices in the first quarter of 2017 was slightly higher than the 0.3 percent increase registered in the preceding quarter to December 2016.
By the type of housing units, condominiums posted the highest year-on-year increase in prices at 2.7 percent, followed by townhouses at 1.3 percent, and single detached/attached housing at 0.4 percent.
Prices of duplexes dipped by 20.5 percent.
“The average residential property prices in both NCR [Metro Manila] and AONCR [areas outside Metro Manila]also increased by 1.1 percent in the first quarter of 2017, compared with year-ago prices,” the Bangko Sentral said.
In Metro Manila, the rise in prices of single detached houses and townhouses outpaced the increase in prices of condominium units, the central bank said.
Meanwhile, in areas outside Metro Manila, the double-digit increase in prices of condominium units offset the slight decline in prices of single detached houses and townhouses.
“The numbers are encouraging as they continue to show that credit conditions remain favourable, despite the rise in both global and domestic interest rates,” Bank of the Philippine Islands (BPI) Vice President and lead economist Emilio Neri Jr. said.
By region, the NCR accounted for 44.8 percent of the residential real estate loans granted in the first quarter of 2017, followed by Calabarzon (29.3 percent), Central Luzon (6.7 percent), Central Visayas (5.7 percent), Western Visayas (5.1 percent), Davao Region (3.2 percent), and Northern Mindanao (1.5 percent).
“Together, these seven regions accounted for 96.3 percent of the total housing loans granted by banks,” the central bank said.
The index also showed that about seven out of 10 residential real estate loans granted were for the purchase of new housing units.
By the type of housing units, about 48.4 percent of residential property loans were for condominiums, followed by single detached (43.3 percent) and townhouses (7.9 percent).
By area, condominium units were the most common house purchases in Metro Manila, while single detached houses were mostly acquired in areas outside Metro Manila.
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 the growth rate recorded by the index indicates price inflation, the central bank said.
It is computed as a weighted chain-linked index based on the average appraised value per square meter, weighted by the share of the floor area of the housing units. Besides the overall index, sub-indices have also been constructed for the different types of housing units, such as single, duplex, apartments and residential units.
The BSP said the index could serve as a measure to assess trends in real estate and credit market conditions in the country.