Residential real estate prices fell 4.2 percent in the first quarter from a year ago on subdued demand amid the lingering global pandemic, according to the latest Residential Real Estate Price Index released by the Bangko Sentral ng Pilipinas over the weekend.
The study also noted a 1.6-percent quarter-on-quarter decline in residential property prices.
“The negative year-on-year growth in nationwide residential property prices was driven mainly by the downtrend of property prices in the NCR, which fell by 10 percent relative to Q1 2020, marking three consecutive quarters of declines since Q3 2020,” BSP said.
“This was due to the decrease in the prices of condominium units, which outweighed the increase in the prices of duplexes, single detached/attached houses, and townhouses,” it said.
Meanwhile, property prices in the provinces rose 0.8 percent as the growth in the first quarter in the prices of townhouses and condominium units more than offset the drop in the prices of duplexes and single detached/attached houses.
The BSP said that on a quarter-on-quarter basis, house prices contracted in the NCR by 0.8 percent and areas outside NCR by 2.1 percent, following the national trend.
By type of housing units, the change in residential property prices was mixed. Prices of duplexes and condominium units declined year-on-year in the first quarter of 2021 by 20.7 percent and 10.7 percent, respectively, while prices of townhouses and single detached/attached houses increased by 8.3 percent and 0.2 percent, respectively.
“This was the third consecutive quarter that condominium prices declined, owing to the lackluster demand for condominiums in NCR. The 4.2-percent year on year drop in the RREPI was primarily driven by the fall in prices of condominium units and duplexes,” the BSP said.
Meanwhile, the quarter-on-quarter contraction of 1.6 percent in the RREPI was attributed to the lower prices of duplexes, townhouses and single detached/attached houses, which more than offset the higher prices of condominium units.
Data also showed that the number of residential real estate loans granted in the first quarter this year for all types of new housing units contracted by 14.7 percent year-on-year and 32 percent quarter-on-quarter. A similar trend was observed in NCR and in the provinces.
The average appraised value per square meter of new housing units in the country contracted by 13.6 percent year-on-year but expanded by 12.5 percent quarter-on-quarter. In both NCR and AONCR, the average appraised value per sq. m. of new properties was lower year on year, but higher quarter-on-quarter.
By type of new dwellings, duplexes and condominium units registered year-on-year decline in average appraised values per sq. m. while single detached/attached houses, duplexes and townhouses posted quarter-on-quarter drop in average appraised values.
The weight of each type of housing unit in the RREPI is determined by dividing the total floor areaof a specific type of housing unit over the total floor area of all housing types.
The purchase of new housing units accounted for 79.5 percent of residential real estate loans in the quarter.