Residential real estate prices fell for the second straight quarter as the impact of the pandemic kept investors away.
Based on Bangko Sentral ng Pilipinas’ Residential Real Estate Price index (RREPI), housing pieces of various types of new housing units contracted by 9.4 percent in the second quarter due to weak demand.
In the first quarter, residential real estate prices declined by 4.2 percent year on year.
On a quarter-on-quarter basis, however, housing prices increased by 4.8 percent due to the higher prices of all types of housing units such as single detached/attached houses, duplexes, townhouses, and condominium units.
The high base effects also drove prices down on a year-on-year basis after growing 26.6 percent in the second quarter in 2020.
Real estate prices in the National Capital Region conntributed to the decline as prices in the area plunged by 18.3 percent year-on-year, largely due to the drop in prices of condominium units and single detached/attached houses by 14.3 percent and 7.4 percent, respectively.
Outside NCR, property prices decreased by 0.6 percent year-on-year.
The RREPI uses bank data on actual mortgage loans and measures the average price change of the different types of residential properties.
About 79.1 percent of residential real estate loans were used to buy new housing units and 49.5 percent were used for the acquisition of condominium units.
Around 39.2 percent of loans were used for single detached/attached houses and 10.3 percent for townhouses.
The BSP said majority of residential real estate loans were granted in the NCR for the purchase of condominium units while loans in areas outside NCR were used to buy single detached/attached houses.
SOURCE: Bilyonaryo
