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July 13, 2024

Residential real estate prices sustain growth in Q4 2021

Demand for all types of new housing in the country continued to rise in the final quarter of 2021, particularly for condominium units and townhouses, the Bangko Sentral ng Pilipinas (BSP) said on Friday.

Increased demand for condominium and townhouses during the period more than offset the decline in the price of duplex housing and single-detached/attached units.

According to the BSP, the so-called residential real estate price index (RREP) in Q4 2021 rose 4.9 percent from a year ago and by 1.1 percent a quarter earlier.

This was consistent with the outcome of the Consumer Expectations Survey (CES) for the period indicating a high percentage of consumers preferring to buy property in the final three months of the year.

But residential property prices in the National Capital Region (NCR) slowed to a growth of only 5 percent versus 11.3 percent in Q3 2021.

Property prices in areas outside NCR rose 5.1 percent from a year earlier and by 2.6 percent a quarter before.

“On a quarter-on-quarter basis, residential property prices rose in the AONCR (by 2.6 percent), following the national trend, but declined in the NCR (by 1.2 percent),” the BSP said.

Loans for residential real estate purposes contracted by 11.5 percent on annual basis but grew by 2 percent QoQ.

The same pattern was observed in the AONCR. However, for the NCR, the number of loans granted declined from year- and quarter-ago levels, the BSP said.

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).