Property prices post 2-digit growth

MANILA, Philippines — The real estate sector continued to post double-digit growth in prices for the second straight quarter in the fourth quarter last year amid the steady rise in the cost of acquiring residential units particularly condominium units in the National Capital Region (NCR), according to the Bangko Sentral ng Pilipinas.

Based on BSP data, the residential real estate price index (RREPI) increased by 10.2 percent to hit a record high of 130.2 in the fourth quarter from 118.1 in the same quarter in 2018.

“While this is the second consecutive quarter that the index has registered a double-digit growth, this is slightly lower than the 10.4 percent growth in the third quarter of 2019, but higher than the 0.6 percent in the fourth quarter of 2018,” the BSP said.

The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since the first quarter of 2016.

The index measures the average change in the prices of various types of housing units based on data from housing loans granted by universal, commercial and thrift banks.

According to the BSP, the prices of condominium units increased by 18.9 percent to 171.5 in the fourth quarter from 144.2 in the same quarter in 2018, while prices of townhouses went up by 10.1 percent to 143 from 129.9, while the prices of single detached or attached houses rose by 5.8 percent to 108.5 from 104.6.

On the other hand, the prices of duplexes recorded their highest price growth at 50.4 percent to 148.6 in the fourth quarter of 2019 from 98.8 in the same quarter in 2018.

 “The prices of all types of residential housing units rose in the fourth quarter of 2019 compared to the fourth quarter of 2018 property prices,” the central bank said. There has been huge demand for residential units, particularly condominium, over the past few years due to the influx of Chinese nationals working for Philippine offshore gaming operators (POGOs).

Year-on-year, the BSP said residential property prices are higher in both NCR and in areas outside NCR.

The average residential property prices in NCR grew by 15 percent to 149.3 in the fourth quarter of last year from 129.8 in the same quarter of 2018, while that of areas outside NCR went up by 8.2 percent to 119.2 from 110.2.