Manila, Philippines — The housing prices nationwide jumped double-digits in the second quarter of the year and outstripped the first-quarter increase as the residential property prices skyrocketed outside the National Capital Region (NCR) or Metro Manila, the Bangko Sentral ng Pilipinas (BSP) — central bank of the Republic of the Philippines — reported on Friday.
In the second-quarter of the year, the residential real estate price index (RREPI) — which measures the average changes in prices of all types of housing units across the archipelago — increased to 122.8 percent from 115.9 percent in the first quarter and 110.3 YoY. With that being said, it was the highest since the index measured real estate prices in the second quarter last year. The growth rate of the index measures house price inflation, the BSP noted.
In the second quarter, the average price of housing units in the Philippines skyrocketed by 11.3 percent year-on-year from the 9.4 percent in the first quarter. The prices of single detached/attached houses in the country grew 18.6 percent year-on-year, almost more than double the 7.7-percent growth in the previous quarter.
Meanwhile, the prices of townhouses increased by around 14.7 percent year-on-year, which is faster than 7.6 percent a quarter ago.
However, the duplex prices increased at a slower 0.6 percentage year-on-year during the second quarter as compared with the 10.4-percent increase the first quarter.
The pricing of condominium units, on the other hand, incrementally rose by 0.1 percent in the second quarter, a significantly reversed to the 13.4-percent increased during the previous quarter.
In the metropolis, the average price of housing units was up by about 2.7 percent YoY, slower than the first quarter’s 10-percent growth.
Moreover, the prices of single detached/attached houses and townhouses in Metro Manila climbed by 13.8 percent and 9.2 percent year-on-year, respectively.
Outside the NCR, the housing prices hiked by 18.4 percent in the second quarter of 2016, a surge from the preceeding quarter’s 9 percent.
The prices of duplex units and townhouses saw mixed increments across the Philippines but saw overall costs rise by 0.6 percent and 14.7 percent, respectively.
The duplex homes saw prices rise by 24.7 percent while the townhouses prices surged by 24.3 percent in the provinces. However, this was tempered by a sharp 22.5 percent nosedive in duplex costs within the MCR, alongside a 9.2 percent price hike in townhouses.
As for residential real estate loans data gathered in the second quarter, the BSP explained in a press release that seven out of every ten loans were for purchases of new houses. And half of the residential property loans were for single detached homes, followed by condo units (41.2 percent) and townhouses (8.4 percent).
The Philippine banks handed out a total of P1.389 trillion in real estate loans as of June 2016, a 18.1 percent increase from a year ago based on BSP data.
In a September 30th press briefing, the Philippine central bank Governor Amando M. Tetangco, Jr. said the country is far from seeing an asset bubble, with an increasing demand rather than an oversupply of both residential and commercial area driving up the property prices. Tetangco pointed to a change in lifestyles that saw some Filipino workers purchasing condo units near the NCR business districts to serve as their primary homes during the weekdays, alongside continued demand for office space with the booming business process outsourcing (BPO) industry.
An estimated 5.7 million backlog remaining for low-cost houses in the country, according to officials from the National Housing Mortgage Finance Corporation. — TheVader.com