MANILA, Philippines — Property prices nationwide rose for the second straight quarter in the fourth quarter of 2021 as the cost of owning a townhouse or a condominium jumped by double digits.
According to the Residential Real Estate Price Index (RREPI), property rates across the country grew by 4.9 percent from October to December 2021, faster compared to the 0.8 percent expansion recorded in the same period in 2020.
On a quarterly basis, property prices went up by 1.1 percent in the fourth quarter of 2021 as demand for real estate rebounded following the easing of quarantine restrictions.
Property costs increased by five percent within Metro Manila, while a 5.1 percent growth was recorded in areas outside of the NCR. On a quarterly basis, property prices in Metro Manila declined by 1.2 percent, even as rates climbed by 2.6 percent in areas outside of the capital.
Based on the RREPI, the 4.9-percent growth in property prices can be attributed to the double-digit spikes in townhouse and condominium costs. During the period, townhouse rates rose by 22.6 percent, while condominium prices climbed by 10.4 percent.
In contrast, the RREPI reported that the prices for duplex and single detached units slipped by 10.2 percent and 1.1 percent, respectively.
Loans for the purchase of real estate dropped by 11.5 percent in the fourth quarter of 2021, steeper than the 3.6 percent decline a year earlier.
On a quarterly assessment, residential real estate loans expanded by two percent, buoyed by a 5.9-percent growth in areas outside of Metro Manila.
Also, nearly three in every four housing loans that were taken out during the period in review were channeled for the procurement of new properties. By type, the bulk of the credit was used to procure condominium units (44.6 percent), followed by single detached (39.3 percent), townhouses (15.6 percent) and duplex (0.5 percent).
The RREPI also reported that the average appraised value of new housing units in the country stood at P74,347 per square meter. The average appraised value per sqm stood at P115,235 in Metro Manila as compared to the P49,905 in areas outside of the region.
The RREPI measures the changes in the prices of various residential units based on data from banks on actual mortgage loans awarded to clients.
The Bangko Sentral ng Pilipinas uses the RREPI to evaluate real estate and credit market conditions across the country.