Residential property prices fell for two quarters
Residential property prices of various types of new housing have fallen for two consecutive quarters mainly due to the effects of the global health crisis, according to the latest residential property price index released by the Bangko Sentral ng Pilipinas this week. -end. Nationwide house prices in the second quarter of this year contracted 9.4% year-on-year, more than the 4.2% drop from a quarter ago. “High base effects may also have contributed to the decline in prices given the peak recorded in the index in the second quarter of 2020. In contrast, house prices rose 4.8% quarter on quarter,” said the BSP. “The contraction in residential real estate prices nationwide is mainly due to the downward trend in real estate prices in the National Capital Region, which fell 18.3% from the second quarter of 2020, marking four consecutive quarters of decline since the third quarter of 2020, “he said. The decrease is explained by negative variations in the prices of single-family homes, condominiums and townhouses in the NCR. In the case of duplex housing, no bank loan was granted and reported to BSP in the second quarter. Property prices in areas outside the NCR also edged down 0.6%, as the drop in single-detached semi-detached homes more than offset growth in townhouses, duplexes and condominiums. On a quarterly basis, house prices rose 3.4% in NCR and 5.1% in AONCR, following the national trend. The 9.4% year-over-year decline in the national RREPI is mainly due to the drop in prices for condominiums and single / townhouses to 14.3% and 7.4%, respectively, in the second quarter of 2021. It this is the fourth consecutive quarter. that condominium prices have declined, mainly due to weak demand in the NCR. In contrast, prices for duplexes and townhouses rose 28.9% and 15.1%, respectively.
The number of residential mortgage loans (RREL) granted for all types of new housing in the Philippines increased 82.3% in the second quarter of 2021, but fell 3.6% quarter-on-quarter. A similar trend was observed in NCR, as the number of RRELs granted in AONCR increased year over year and quarter over quarter. The average appraised value per square meter of new housing units in the country contracted 29.1% year-on-year, but increased 1.8% quarter-on-quarter. This trend can be observed in the same way in NCR, while in AONCR, the average appraisal value per m² of new housing increases from year to year and from quarter to quarter. By type of new housing, condominiums and single-detached houses recorded a lower average appraisal value per m², while a higher average appraisal value per m² was observed for townhouses and duplexes. The average appraisal value per m², all types of housing combined, increased from one quarter to the next. The weight of each housing type in the RREPI is determined by dividing the total floor area (in m²) of a specific housing type over the total floor area of all housing types. Thus, single-family semi-detached homes in the RREPI in the second quarter of 2021 continued to constitute the largest weight at 54.2%. Meanwhile, condominiums, townhouses and duplexes accounted for 30.8%, 13.8% and 1.3% respectively. In the second quarter of 2021, the purchase of new housing represented 79.1% of residential mortgage loans. Meanwhile, depending on the type of housing unit, most residential mortgage loans were used for the acquisition of condominium units (49.5%), followed by single / semi-detached houses (39.2%) and townhouses (10.3%). Most of the residential real estate loans in the NCR were for the purchase of condominium units, while the loans in the AONCR were for the purchase of single / semi-detached houses.
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