PH Residential Property Prices increased by 4.9% in Last quarter of 2021

The Philippines’ residential property prices increased by 4.9% year-on-year in the fourth quarter of 2021 as consumers preferred to buy during, what seemed to be, the end of the pandemic.

Furthermore, the latest Residential Real Estate Price Index (RREPI) report of the BSP showed that prices increased by 1.1% from Q3 to Q4 2021. According to the BSP, the prices’ behavior was consistent with the findings from the Consumer Expectations Survey that covered the last three months of 2021.

The central bank reports that the latest growth figures were driven by the continuous demand for residential property, particularly for townhouses and condominium units.

In the National Capital Region (NCR), prices increased by 5% year-on-year in the fourth quarter. Simultaneously, prices outside NCR were stable at roughly 5%.

“Prices in both areas (NCR and areas outside NCR or AONCR) were driven mainly by the rise in the prices of condominium units and townhouses, which more than offset the decline in the prices of duplex housing units and single-detached/attached houses,” the BSP said.

They added that the prices of townhouses and condo units increased by 22.6% and 10.4%, respectively.

“In the case of condominium units, the upward trend in prices was mainly attributed to the units in the AONCR,” the BSP said. “By contrast, prices of duplex housing units and single-detached/attached houses contracted by 10.2 percent and 1.1 percent, respectively.”

Last year’s fourth quarter saw the number of residential real estate loans (RREL) granted for new housing units contract by 11.5% yearly. However, in terms of quarter-on-quarter, the loans grew by 2%.

On average, the appraised value of new housing units was P74,300 per square meter. The figure was mostly due to the value per square meter in NCR as it was P11,235 while the national average and AONCR stood at P49,905.

In the last three months of 2021, almost three-fourths of the RRELs were used to buy new housing units, particularly condominium units.

Source: Inquirer