Philippine housing prices posted an increase in the second quarter of 2020 on the back of increase in demand and cost of construction, data released by the Bangko Sentral ng Pilipinas (BSP) showed.
In its report, the BSP said residential real estate prices of various types of new housing units in the Philippines rose by 27.1% year-on-year in Q2 2020 based on the Residential Real Estate Price Index (RREPI).
“This is the highest y-o-y growth rate recorded since the start of the series in first quarter 2016,” the central bank said.
The RREPI registered 149.4 index points in the second quarter 2020 from an index of 134.9 in the first quarter 2020 and 117.5 index in the second quarter 2019.
“The increase in the index may be attributed to the higher percentage of loans granted for houses with prices above P100,000 per square meter, which comprised almost half of total loans (at 49.5% in second quarter 2020 from 24.5% in Q2 2019),” the central bank said.
The BSP said banks cited the following reasons for the uptick in real estate prices during the period:
- higher demand for high-end projects, which drove the average price per square meter (sqm) upwards
- rising prices of construction materials, labor costs and other indirect costs, e.g., higher marketing costs of appraised premium properties
“Further, in terms of area and type of housing unit, the highest contributors to the increase in housing prices were loans for the purchase of condominium units, particularly those in NCR, and single attached/detached houses,” the BSP said.
“Low base effects also contributed to the price growth,” it added.
In a separate statement, property consultancy firm Colliers International senior manager Joey Bondoc said that take-up in the second quarter reached 8,700 units compared to 8,600 units a year ago.
“In first half 2020, total sales reached close to 20,000 units, still a pretty good take up compared to 22,000 units a year ago. That’s a decent sales performance given the country, particularly Metro Manila, was under a strict lockdown during the period,” Bondoc said.
“We still attribute the good sales performance during the period to attractive payment terms offered by developers. We see these flexible schemes being extended to buyers of mid-income to ultra-luxury projects. Developers’ shift to digital platforms also chipped in. The decent take up figures indicate that there is liquidity in the market,” he added.
By area, residential property prices in both the National Capital Region (NCR) and in areas outside NCR (AONCR) register growth year-on-year, according to the BSP.
The central bank said residential property prices in NCR grew by 34.9% relative to a year ago, which is higher than the 18.1% growth in AONCR.
“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,” it said.
“Likewise, prices in AONCR increased across all types of housing units,” it added.
Meanwhile, all types of housing units recorded a growth in prices in the second quarter relative to the same quarter last year.
“Prices of condominium units rose the fastest at 30.1% year-on-year,” the BSP said.
“Similarly, prices of single detached/attached houses, townhouses and duplexes grew by 24.1%, 10.8% and 0.8%, respectively,” it said. —LBG, GMA News