Housing prices continue to cool in Q2

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

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Residential sales back on track in Q1 fueled by upper middle class, luxury units

 Article by Bilyonaryo

 

 

The luxury and upper middle-class residential real estate markets are proving to be extremely resilient and more than capable of withstanding the current circumstances.

According to Leechiu Property Consultants Inc., residential land demand picked up for the second quarter in a row with unit sales rising 5.7% in January to March, driven by upper middle class and wealthy consumers.

Demand for luxury residential space (P68 million and above) remained robust with a total of 44 units snapped up during the period as against 48 units in the fourth quarter last year.

“Recovery in the upper middle to luxury segment is particularly strong..Capital preservation has driven many investors to increase their assets in real estate, which have proved resilient throughout the pandemic,” LPC said.

Plans to purchase a primary and secondary home have trended upward in the face of mobility restrictions and other disruptions brought on by the Covid-19 pandemic.

“Demand remains for premium units starting at P4 million and above and is continuously increasing. However, limited inventory and lack of access to funding has slowed down sales demand of lower and middle income units,” LPC said.

The property consultancy firm expects the rest of the segments to follow suit amid lower interest rates and access to funding.

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