BSP: House prices continued to rise in the first quarter

Residential property prices continued to rise in the first quarter of the year, Bangko Sentral ng Pilipinas (BSP) reported on June 23.

The central bank said the country’s residential property price index, or RREPI, which is updated quarterly by the BSP, jumped 5.6% in the first three months of the year from a year ago.

The year-on-year increase in RREPI is consistent with the results of the Consumer Expectations Survey (CES) for the first quarter of 2022, which showed a higher percentage of consumers choosing to buy property in the first quarter of 2022. — stated in the message BSP.

By borough, residential property prices in the National Capital Region (NCR) rose 9.5 percent. The rise, according to the central bank, is primarily driven by higher prices for condominiums and townhouses, which more than offset lower prices for duplex units and detached/attached homes.

Similarly, property prices in areas outside the TFR rose by 5 percent as all types of housing units registered an increase, with the exception of detached/attached homes, which showed a decline.

By type of housing, prices for townhouses, duplexes, and condominiums have risen over this period. Townhouses, in particular, posted the highest growth at 25.6 percent, followed by duplexes at 20.9 percent and condominiums at 14.7 percent.

Conversely, prices for detached and/or attached houses fell by 2.5 percent.

Amid higher property prices during this period, fewer people took out home loans.

The number of residential property loans (RRELs) issued for all types of new housing units in the Philippines decreased by 9.2 percent, mainly due to a 39.3 percent decrease in the number of NCR RRELs.

During the quarter, almost three-quarters (74.3 percent) of residential property loans were used to purchase new housing units.

Meanwhile, by type of housing, the majority of residential property loans were used to purchase detached and/or attached homes (47 percent), followed by condominium units (38 percent) and townhouses (14.4 percent).