Residential property prices jump 6.5% in Q3

Prices of various types of new housing units in the country rose 6.5 percent year-on-year in the third quarter of 2022 and 4.6 percent quarter-on-quarter (QoQ), data showed on Thursday.

In a statement, the Bangko Sentral ng Pilipinas' residential real estate price index showed that by area, residential property prices increase YoY in the National Capital Region and Areas Outside the NCR (AONCR), but declined QoQ in the AONCR.

On a YoY basis, residential property prices in the NCR and AONCR increased by 17.5 percent and 2.3 percent, respectively, primarily driven by the increase in the prices of condominium units and single-detached/attached houses, which outweighed the decrease in the prices of townhouses.

Moreover, on a QoQ basis, residential property prices rose by 14.6 percent in the NCR, but contracted by 0.4 percent in the AONCR, data showed.

Also, prices rise across housing types, except townhouses.

Duplex housing units

In the third quarter of 2022, prices of duplex housing units, condominium units, and single-detached/attached houses contributed to the YoY growth in the nationwide RREPI as these prices increased by 26.7 percent, 19.2 percent, and 9.8 percent, respectively.

Meanwhile, prices of townhouses declined by 16.3 percent.

Similarly, the 4.6 percent QoQ growth in the index may be attributed to the higher prices of condominium units by 12.0 percent, duplex housing units by 3.4 percent, and single-detached/ attached houses by 2.7 percent, the RREPI data showed.

Meanwhile, prices of townhouses declined -2.1 percent, QoQ.

Furthermore, in the third quarter of 2022, the number of residential real estate loans granted for all types of new housing units in the country fell by 4.2 percent YoY as RRELs in the NCR and AONCR contracted by 2.0 percent and 5.7 percent, respectively.

By contrast, the nationwide availment of housing loans rose by 19 percent QoQ, following the 32.0 percent and 11.5 percent growth in loans in the NCR and AONCR, respectively.

New housing units

Meanwhile, RREPI data shows that the average appraised value of new housing units in the country stood at P84,589 per square meter in the third quarter of 2022.

"The average appraised value per sqm in the NCR was at P139,283, higher than both the national average and the average appraised value in the AONCR at P47,129," it added.

The weight of each type of housing unit in the RREPI is determined by dividing the total floor area (in square meters) of a specific type of housing unit over the total floor area of all housing types.

In the third quarter of 2022, single-detached/attached houses in the RREPI continued to constitute the largest weight at 58.0 percent.

Meanwhile, condominium units, townhouses, and duplex housing units accounted for 24.5 percent, 17.0 percent, and 0.4 percent, respectively.

The RREPI is a measure of the average change in the price of various types of housing units, i.e., single-detached/ attached houses, duplex housing units, townhouses, and condominium units, based on banks' data on actual mortgage loans granted to acquire new housing units only.