MANILA, Philippines - The Philippines was among the top performers in terms of growth in housing prices worldwide, according to a survey by research house Global Property Guide (GPG).
In GPG’s global house price survey for 2013, the Philippines was the fourth top performer with the average price of three-bedroom condominium units in the Makati central business district rising 10.56 percent in 2013 following annual increases of 4.85 percent in 2012 and two percent in 2011.
“Demand remains strong, as indicated by soaring real estate loans,†the research house said.
It noted that based on data from the Bangko Sentral ng Pilipinas, the volume of real estate loans rose 38.5 percent year-on-year to P776.65 billion in September last year.
Citing real estate advisory services firm CBRE Philippines, GPG said the Philippine housing market is expected to accelerate this year, to be supported by the rising number of foreign investors as well as growing business process outsourcing industry.
The growth in the local housing market is seen amid the country’s favorable economic conditions.
The economy grew 7.2 percent in 2013, faster than the 6.8 percent expansion posted in 2012.
For this year, the government has set a 6.5 to 7.5 percent economic growth target.
Topping GPG’s list of countries with rising housing prices was United Arab Emirates with average prices of housing units in Dubai growing 21.52 percent in 2013.
This was followed by Estonia with average housing prices up 16.55 percent, while Taiwan came in third with average housing prices increasing 14.46 percent last year.
China placed fifth on the list as the average cost of housing units in Shanghai climbed 10.13 percent in 2013.
Out of the 42 countries covered by GPG’s survey, 27 markets showed housing price increases
“House prices are rising in many more countries than not, and the momentum trend is strongly upwards,†GPG said.
GPG which provides information on residential property development covers market trends in 101 countries.