Housing prices rise by 9.7% in NCR, 9.4% outside NCR – BSP
MANILA, Philippines – Housing prices continue to rise in the National Capital Region (NCR) and nearby areas, according to data released by the Bangko Sentral ng Pilipinas on Monday, June 6.
The Residential Real Estate Price Index (RREPI) rose by 9.2% in the first quarter of 2016, compared to the same period last year.
This was led by real property prices in NCR which increased by 9.7%, followed by prices in areas outside the NCR (AONCR) which grew by 9.4%.
Newly instituted at the end of 2015 to prevent a housing bubble, the RREPI uses data from approved housing loans to measure the average changes in housing prices over a period of time and across different regions.
Banks are required to transmit housing loans to the BSP which uses the growth rate of the index to measure housing inflation.
Condominiums, townhouses popular
The BSP noted that real property prices in NCR and AONCR relatively followed the same pattern from Q1 2015 to Q3 2015, with AONCR showing slower growth rates.
Starting Q3 2015, however, year-on-year growth of real property prices in AONCR increased at a faster rate due to higher growth rates in prices of townhouses and condominium units, the BSP said.
About 7 out of 10 residential real estate loans granted were for the purchase of new housing units, it added.
Condominium units posted the highest year-on-year growth in prices at 12.9%, followed by townhouses at 8.5%. Condominium units were also the most common housing purchase in NCR while single detached houses were the most popular in AONCR.
By region, NCR accounted for 50.4% of the residential real estate loans granted in Q1 2016, followed by Calabarzon at 28.4%, Central Luzon at 7.6%, Western Visayas at 3.8%, and Central Visayas at 3.3%.
The BSP said at the onset of the year that stress tests showed no signs of a housing bubble forming.
A total of 93 out of 109 banks or 85.3% covered by the index submitted their reports to the BSP during the first quarter of 2016. These banks consisted of 40 universal banks and 53 thrift banks.
The RREPI is computed as weighted chain-linked index based on the average appraised value per square meter weighted by the share of floor area of housing units.
As housing prices increase, property consultancy CBRE said the commercial sector is also growing, led by offices for BPOs that are starting to fan out across the country. – Rappler.com