The residential real estate prices of various types of new housing units in the Philippines continued to rise in the fourth quarter of last year due to the sustained demand for residential property, particularly for townhouses and condominium units.
The Residential Real Estate Price Index (RREPI) sustained its growth trend in Q4 2021, rising by 4.9 percent and 1.1 percent compared with year-ago and quarter-ago levels.
The Bangko Sentral ng Pilipinas said this is consistent with the outcome of the Q4 2021 Consumer Expectations Survey (CES), which showed a higher percentage of consumers preferring to buy real estate property during the last quarter of 2021.
Residential property prices in the NCR increased by 5.0 percent year-on-year albeit lower than 11.4 percent in Q3 2021.
Similarly, property prices in the AONCR went up by 5.1 percent.
Prices in both areas 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 4.9 percent year-on-year upturn in the nationwide RREPI in Q4 2021 was primarily driven by the rise in prices of townhouses and condominium units, increasing by 22.6 percent and 10.4 percent, respectively.
The year-on-year growth in their prices, however, were slower compared with that posted in Q3 2021.
In the case of condominium units, the upward trend in prices was mainly attributed by the units in the AONCR. By contrast, prices of duplex housing units and single-detached/attached houses contracted by 10.2 percent and 1.1 percent, respectively.
In Q4 2021, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines contracted by 11.5 percent year-on-year. The same pattern was observed in the AONCR.
The average appraised value of new housing units in the country stood at P74,347 per square meter.
The average appraised value per sqm was higher in the NCR at P115,235 than both the national average and AONCR average at P49,905.
The weight of each type of housing unit in the RREPI is determined by dividing the total floor area of a specific type of housing unit over the total floor area of all housing types.
In Q4 2021, single-detached/attached houses in the RREPI continued to constitute the largest weight at 51 percent.
Meanwhile, condominium units, townhouses, and duplex housing units accounted for 27.5 percent, 21 percent, and 0.6 percent, respectively.
In Q4 2021, almost a third or 73.5 percent of residential real estate loans (RRELs) were used to purchase of new housing units. Meanwhile, by type of housing unit, most of the residential property loans were used for the acquisition of condominium units (44.6 percent), followed by single-detached/attached houses (39.3 percent) and townhouses (15.6 percent).
Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in the AONCR were for the purchase of single-detached/attached houses.
