Residential property values reached another all-time high as prices across all types of housing units accelerated in the second quarter of the year on greater demand and costs, data from the Bangko Sentral ng Pilipinas (BSP) showed on Friday.
The central bank’s Residential Real Estate Price Index (RREPI) picked up by 27.1 percent to 149.4 in April to June, the highest since it started releasing the index report in the first quarter of 2016.
“Banks cited the following reasons for the uptick in real estate prices in Q2 2020: higher demand for high-end projects, which drove the average price per square meter upward; and rising prices of construction materials, labor costs and other indirect costs, e.g., higher marketing costs of appraised premium properties,” the BSP said in a statement.
All types of housing units saw a surge in prices in the second quarter, compared with those a year ago.
Prices of condominium units increased by 30.1 percent. Those of single detached/attached houses grew by 24.1 percent; townhouses, 10.8 percent; and duplexes, 0.8 percent.
By area, the average residential property prices in the National Capital Region (NCR) and areas outside it — AONCR — climbed by 34.9 percent and 18.1 percent, respectively.
“In NCR, all types of housing units registered an increase in prices, except for duplexes, as no loans for the purchase of duplexes in the said area were granted and reported in Q2 2020,” the Bangko Sentral said.
Growth in prices was recorded in all types of housing units in AONCR, it added.
By region, Metro Manila accounted for 58.6 percent of residential real estate loans granted in the three months ending June. Region 4 A (Cavite, Laguna, Batangas, Rizal and Quezon provinces, or Calabarzon), followed at 21 percent; Region 3 (Central Luzon), 5.5 percent; Region 6 (Western Visayas), 3.3 percent; Region 7 (Central Visayas), 3.2 percent; Region 11 (Davao), 2.5 percent; and Region 10 (Northern Mindanao), 1.9 percent.
The “NCR and these six other regions combined accounted for 96 percent of total housing loans granted by banks,” the central bank said.
About 84.8 percent of residential real estate loans granted were used to buy new houses.
By type, about 62.7 percent of residential property loans were for condominium units, followed by single detached/attached houses (32.1 percent) and townhouses (4.8 percent).
The RREPI is a measure of the average change in the prices of various types of housing units, based on banks’ data on loans used to acquire new housing units.
It is a chain-linked index, which is computed using the average appraised value per square meter, weighted by the share of floor area of each type of housing unit to the total floor area of all housing units.
The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country.