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Housing prices down in Q2, but still higher year-on-year

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Prices of residential real estate nationwide declined by 2.1% in the second quarter of 2019 compared to prices in the first quarter.

Except for those of the single detached/attached units, however, the prices in the second quarter were still higher compared to the prices over the last three years, the Bangko Sentral ng Pilipinas (BSP) reported.

The Residential Real Estate Price Index (RREPI) went down to 117.5 in the second quarter from 120 in the first quarter of 2019.

Only the prices of condominium units registered an increase to 151.8 in the second quarter from 145.2 in the first quarter.

The other types of housing - duplex, townhouse, and single detached/attached - posted lower price indices of 111.4 (from 121 in Q1), 133.9 (from 134.4 in Q1), and 100.7 (from 105.7 in Q1).

The 117.5 RREPI in the second quarter, however, was still a bit higher compared to the index in the same period of 2018, which was reported at 117, and compared to the 113.7 in 2017 and 109.8 in 2016.

Year-on-year, only the prices for single detached/attached houses declined by 4.2%.

The prices of duplexes, condominium units, and townhouses went up by 12.5%, 9.6% and 4.3%, respectively, compared to the year ago level. These types of housing comprised 58.7% of total new housing units in the period under review.

Also year-on-year, prices in the National Capital Region (NCR) increased by 5.2% while those in areas outside NCR went down by 1.1% in the second quarter.

“In NCR, the higher growth in prices of duplexes and condominium units offset the decline in prices of single detached houses and townhouses. In AONCR, the drop in prices of single detached houses outweighed the increase in prices of other types of housing units,” the BSP stated.

See BSP table here.

Meanwhile, about 3 of 4 (73.4%) of residential real estate loans (RRELs) in the second quarter were for the acquisition of new housing units.

In terms of type of housing units, 45.8% of the loans were for the purchase of condominium units, followed by single detached/attached houses (43%) and townhouses (10.5%).

By area, most of the loans granted in the NCR were for the purchase of condominium units, while RRELs granted in areas outside NCR were mostly for single detached/attached houses.

Only about 6% of the total loans granted were in Central Visayas region.

NCR accounted for 43% of the loans, followed by CALABARZON (27.4%), Central Luzon (8.9%), Western Visayas (4.3%), Northern Mindanao (3.3%), and Davao Region (3%).

These regions accounted for 95.9% of total housing loans granted by banks.

All universal/commercial and thrift banks are required to submit a quarterly report to the BSP on all the RRELs that were granted. The RREPI is generated from these reports. (Ventures Cebu)

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