Rise in residential real estate prices in Q1
Residential real estate prices of various types of new housing in the Philippines maintained their growth momentum in the first quarter of 2022.]The Residential Real Estate Price Index (RREPI) rose 5.6% from a year ago, but decreased by 1% compared to the previous one. trimester.
The year-over-year (YoY) increase in RREPI is in line with results from the Consumer Expectations Survey (CES) for the first quarter of 2022, which showed a higher percentage of consumers preferring to buy a good real estate in the first quarter of 2022.
On an annual basis, residential real estate prices in the NCR increased by 9.5%, mainly due to higher prices for condominium units and townhouses, which more than offset lower prices of duplex housing and individual housing. detached/attached houses.
Similarly, real estate prices in the AONCR rose 5%, with all types of housing units registering an increase, with the exception of detached/attached houses, which registered a decrease.
Quarter-over-quarter trends were mixed, with residential real estate prices up 3.5% in the NCR but down 2.1% in the AONCR (Figure 1).
In the first quarter of 2022, the 5.6% growth in the national RREPI was mainly driven by higher prices for townhouses, duplexes and condominiums, increasing by 25.6%, 20.9% and 14, respectively, 7%.
Conversely, prices for single/detached houses contracted by 2.5%.
Meanwhile, the 1% QoQ contraction in the RREPI was due to lower prices for townhouses (-1.7%) and detached/attached homes (-5.1%).
In the first quarter of 2022, the number of residential real estate loans (RREL) issued for all types of new housing in the Philippines contracted by 9.2% mainly due to the 39.3% decline in the number of RREL NCRs.
Meanwhile, on a quarterly basis, the number of RRELs granted contracted by 30.2%, with the number of RRELs in the NCR and AONCR declining by 42.5% and 22.9%, respectively.
The average appraised value of new housing in the country stood at P69,757 per square meter (m²) in the first quarter of 2022.
The average estimated value per m² was higher in the NCR (at P120,405) than the national and AONCR average (at P47,161).
The weight of each type of housing in the RREPI is determined by dividing the total area (in m²) of a type of housing by the total area of all types of housing.
In the first quarter of 2022, RREPI detached/attached homes continued to be the largest weight at 54.5%.
Meanwhile, condominium units, townhouses and duplex units accounted for 24.3%, 20.4% and 0.8% respectively.
In the first quarter of 2022, nearly three-quarters (74.3%) of residential real estate loans (RREL) were used to purchase new homes.
At the same time, by type of housing unit, most residential real estate loans were used for the acquisition of single/detached houses (47%), followed by condominium units (38%) and townhouses (14 .4%).