Real estate prices continue to pick up

MANILA, Philippines — Housing prices in the country remained in an upward trend, sustaining the momentum in the first quarter, as demand gets a boost from economic recovery.

Data from the Bangko Sentral ng Pilipinas (BSP) showed that the residential real estate price index (RREPI) grew by 10.2 percent to 154.1 from January to March compared to the 5.7 percent expansion in the same period last year.

The index sustained its increase from 2022 as business activities went back to normal as the country emerged from the pandemic.

The index is a measure of the average change in the prices of various types of housing units based on banks’ data on actual mortgage loans granted to acquire new housing units.

The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country.

Based on the latest index, property prices in Metro Manila slowed by 7.3 percent to 168 in the three-month period amid the decline in condominium units.

The decrease failed to offset the pickup in the prices of duplexes, single-detached and attached houses, and townhouses.

Properties outside Metro Manila, however, rose by 11.4 percent to 149.2 as the cost of all types of housing units increased, except for townhouses.

The index also showed that despite higher property prices, the number of residential real estate loans granted for all types of new housing units in the Philippines grew by 16 percent.

Of the total loans, almost half was used to acquire single-detached and attached houses. About 32.8 percent was for condominium units and 19 percent for townhouses.

By region, Calabarzon secured the biggest share of loans at 34.5 percent followed by Metro Manila with 28.7 percent. Central Luzon came in third with 13.7 percent.

According to the BSP, the average appraised value of new housing units stood at P73,724 per square meter.

For Metro Manila, the average was significantly higher at P123,053, but it was much lower outside the capital at P51,459 per square meter.