Real estate cost up 4.8 percent in Q2 – BSP

CEBU, Philippines — It is now more expensive to buy residential units as real estate housing cost has gone up by 4.8 percent in the second quarter this year, compared to the same period in 2017.

A report from the Bangko Sentral Ng Pilipinas (BSP) revealed that prices of townhouses, condominium units, and single detached housing units grew by 13.3 percent, 9.1 percent and 0.8 percent, respectively during the first six months of 2018.

Residential Real Estate Price Index (RREPI) increased to 117.2 from 111.8 for the same quarter a year ago.

The RREPI measures the average change in prices of various types of housing units comprising of single detached house, duplex, townhouse, and condominium unit based on data from housing loans granted by universal, commercial, and thrift banks.

Prices of duplex units, which account for only 0.36 percent of total new housing units reported, declined by 4.4 percent year-on-year. Quarter-on-quarter, the RREPI edged higher by 0.8 percent.

Meanwhile, low cost housing developers are seeking for government’s favor in increasing the required price ceilings of socialized homes, in order to encourage builders to invest in providing affordable houses for Filipinos.

This developed following the newly released memorandum circular of Housing and Urban Development Coordinating Council (HUDCC) increasing the minimum standard requirement for socialized housing projects to make it more livable.

“Unless the price ceilings are reconsidered, it will hurt and considerably slow down the collective housing production momentum,” said Organization of Socialized and Economic Housing Developers of the Philippines Inc., (OSHDP) president Marcelino Mendoza.

According to Mendoza the most affected sector in the rising cost of houses across segments, is the mainstream market, who can hardly afford to buy socialized units amid increasing prices of basic needs. (FREEMAN)