The Bangko Sentral ng Pilipinas (BSP) confirmed the decline in housing prices in the Philippines in the third quarter of 2024, pulled down by a double-digit slump in Metro Manila.
It said residential real estate prices for various types of new housing units in the Philippines fell 2.3 percent year-on-year in the third quarter of 2024, the first contraction since the third quarter of 2021.
The BSP said that on a quarter-on-quarter basis, housing prices also reverted into the negative territory at 1.6 percent, after two consecutive quarters of positive growth.
It said that on a year-on-year basis, residential property prices in the National Capital Region (NCR) decreased by 14.6 percent in the third quarter. By contrast, residential property prices in areas outside the NCR (AONCR) increased 3.0 percent.
The BSP said that on a quarter-on-quarter basis, residential property prices in the NCR and AONCR fell by 3.7 percent and 1.0 percent, respectively.
The number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines contracted by 15.7 percent in the third quarter from a year ago. Loans granted in the NCR and AONCR decreased by 20.3 percent and 13.0 percent, respectively.
The double-digit drop in RRELs in the Philippines, NCR and AONCR in Q3 2024 was significant, but not as severe as the decline in housing loan availment observed during the pandemic, which began in the third quarter of 2020, the BSP said.
It said this was consistent with the outcome of the Q3 2024 Consumer Expectations Survey (CES), which showed consumers’ more pessimistic view on buying a house and lot during the period.
The BSP said that on a quarter-on-quarter basis, nationwide housing loan availments grew by 3.1 percent as the 15.8-percent increase in the NCR negated the 2.4-percent contraction in AONCR.
The number of RRELs granted for new single-detached/attached houses in the Philippines contracted by 24.5 percent from a year ago, as the loans granted in the NCR and AONCR decreased by 41.2 percent and 23.7 percent, respectively.
It said the number of RRELs granted for new condominium units in the Philippines fell 13.2 percent year-on-year in the third quarter, the 20-percent decrease in the NCR outweighed the 6.5-percent increase in other parts of the country.
The BSP said the appraised value of new housing units in the country averaged P86,417 per square meter in the third quarter, registering a 6.2-percent decline and 3.2-percent growth over comparable year-ago and quarter-ago levels, respectively.
The average appraised value per sqm in the NCR decreased by 13.7 percent year-on-year and 3.6 percent quarter-on-quarter to P135,076 per sqm.
Meanwhile, the average appraised value per sqm in AONCR expanded by 10.1 percent year-on-year and 3.5 percent quarter on quarter to P60,804.
