The Market Monitor Minding the Nation's Business
Property prices are rising mirroring the still healthy state of the industry as the Residential Real Estate Prices Index (RREPI) jumped to 122.8 points in the second quarter from 110.3 a year ago or 11.3 percent higher.
“The annual growth in residential real estate prices was higher than the 9.4 percent increase posted a quarter ago,” the same report said.
Growth rates of single detached housing units, the highest performer in prices, registered 18.6 percent increase, town- houses rising 14.7 percent, and condominium units steady at negative 0.1 percent.
The BSP culls the real estate price data from the submis- sion of information coming from banks.
Under BSP Circular 892 dated November 16, 2015, univer- sal/commercial banks (UBs/KBs) and thrift banks (TBs) were required to submit a quarterly report on all Residential Real Es- tate Loans (RRELs) as basis for the RREPI.
Property prices in Areas Outside of the National Capital Region (AONCR) exhibited the fastest growth trend with an
18.4 percent growth in the second quarter. Real estate prices in the National Capital Region (NCR) rose 2.7 percent during the period.
The prices of condominium units edged lower in NCR but increased slightly in AONCR.
Based on the BSP data, the real estate loan profile for the second quarter showed seven in 10 real estate loans intended for the purchase of new housing units.
By type of housing unit, about 50.1 percent of residential property loans were for single detached. Loans for condomini- um units comprised 41.25 percent and loans for townhouses represented 8.4 percent.
Condominium units were the most common house pur- chases in the NCR while single detached houses were mostly acquired in AONCR.
The BSP identified seven regions that cornered 95.8 per- cent of the bank loans for real estate purposes.
These are NCR which accounted for 42.1 percent of the total number of residential real estate loans granted during the quarter, Calabarzon 31.5 percent, Central Luzon 6.7 percent, Central Visayas 5.2 percent, Western Visayas 4.9 percent, Northern Mindanao 3.4 percent and Davao Region 2 percent.
Out of the 106 banks covered, 96 banks or 90.6 percent (consisting of 40 universal and commercial banks and 56 thrift banks) submitted their reports to the BSP during the second quarter of 2016. The RREPI which is estimated every quarter based on housing loans granted by banks is a first in the Phil- ippines and is expected to provide a valuable tool in assessing the real estate and credit country, the BSP said in a statement.