The Philippines just had a slight setback in condo inflation
The Philippines just had a slight setback in condo inflation
Prices outside the nation’s capital still growing however
The Philippines’ central bank released its second-ever residential real estate price index (RREPI) on Friday, with data showing that price growth in condominiums across the archipelago has taken a slight step back.
Although residential property prices rose 11.3 percent year-on-year in the second quarter, condominium unit values fell 0.1 percent at the same time. For perspective, a 17.4 percent increase in condominium prices was recorded in the second quarter of last year, according to the country’s maiden RREPI, released in June.
Condo prices in Metro Manila, the national capital region (NCR), fell 0.2 percent on the year in the second quarter, while those in areas outside the national capital region (AONCR) rose 0.1 percent. Housing prices in areas outside the capital in fact grew 18.4 percent across the board, while those in NCR only inched up 2.7 percent.
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“This is due largely to the higher rates of increase in prices of single detached housing units and townhouses in AONCR compared to those of NCR,” the Bangko Sentral ng Pilipinas (BSP) said in a statement.
Condo units were the most ubiquitous house purchases in Metro Manila, the central bank added. Around 41.2 percent of residential property loans around the country in Q2 this year were for condominiums, while 50.1 percent were for single detached homes, the preferred type of housing for buyers outside the capital. Around 8.4 percent obtained loans for townhouses.
The RREPI, which calculates its data from housing loans granted by banks, rose to 122.8 year-on-year in the second quarter, compared with 110.3 in Q2 2015.
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Source: Property Report