By Keisha B. Ta-asan, Reporter
Residential property prices rose by 10.2% in the first quarter, mainly driven by higher costs of duplex housing units, single-detached/attached houses, townhouses, and condominium units, the Bangko Sentral ng Pilipinas (BSP) reported on Friday.
The Residential Real Estate Price Index (RREPI) increased by 10.2% year-on-year in the January to March period, BSP data showed.
This growth was faster than the 7.7% increase in the previous quarter and the 5.7% growth recorded in the same period in 2022.
The growth in property prices during this period was the fastest since the 26.6% recorded in the second quarter of 2020, at the peak of the coronavirus pandemic.
The RREPI tracks the average price changes of residential properties across different housing types and locations. This provides the central bank with insights into the property market, which is regulated due to bank exposure.
There is strong demand for horizontal projects like duplex and single detached/attached houses as the market has fully recovered from the pandemic, Joey Roi H. Bondoc, associate director for research at Colliers International Philippines, said in a phone interview.
“The residential market has already rebounded. People are now starting to buy and are now starting to invest (in housing units),” he noted.
“There was a pause back in 2020 to 2021, but what we’re seeing now is that people are starting to acquire units, both for end use and as an investment vehicle.”
He also noted that elevated prices of construction materials drove property prices upwards.
Based on BSP data, prices of duplexes and single detached/attached houses increased by 22.1% and 17%, respectively, in the January to March period.
Nationwide, prices of townhouses rose by 1.8% year-on-year in the first quarter, significantly slower than the 25.7% rise in the same period in 2022.
Condominium prices edged higher by 1.2% during the first quarter, easing from the 14.5% growth in the comparable year-ago period.
The RREPI also showed that residential property prices in the National Capital Region (NCR) slowed to 7.3% in the first quarter from 9.7% a year ago.
In areas outside NCR (AONCR), residential property prices grew by 11.4%, faster than the 5.1% increase a year prior.
Data from the central bank also showed that residential home loans in the first quarter grew by 16% year on year, with loans in NCR and AONCR increasing by 16.5% and 15.7%, respectively.
During the first quarter, 80.5% of these loans were used to purchase new single-detached/attached houses (47.8%), followed by condominium units (32.8%) and townhouses (18.9%).
The central bank also said that the average appraised value of new housing units in the Philippines stood at P73,724 per square meter (sqm) in the January to March period.
The average appraised value in NCR was P123,053 per sqm, while the average appraised value in AONCR stood at P51,459 per sqm.
According to Mr. Bondoc, demand in the residential market will continue to be strong due to the positive outlook that firms and consumers have for the economy this year.
“The economy is growing at a sustained pace. We have steady remittance inflows from overseas Filipino workers. A better environment for local employees will also lead to an increase in salaries,” he said.
“These factors will all fuel demand and are likely to continue pushing property prices up, especially in AONCR,” he added.