By Lawrence Agcaoili (The Philippine Star) Updated December 26, 2011 12:00 AM
MANILA, Philippines - The Bangko Sentral ng Pilipinas (BSP) reiterated that asset prices in the Philippines have not reached ‘bubble-like’ proportions amid the uncertainties brought about by the growth concerns in the US and the debt crisis in Europe.
BSP Governor Amando Tetangco Jr. said in an interview that property prices in the country remained stable and well below the levels prior to the Asian financial crisis.
“There is no sign of a property bubble yet.Prices that we see now are substantially less in real terms than those right before the Asian crisis,” he said.
Data from property research firm Colliers International indicated that implied land values in the Makati central business district and Ortigas Center increased in the second quarter from the quarter- and year-ago levels.
Implied land values in the Makati CBD reached P268,928 per square meter in the second quarter, higher by 0.3 percent in the first quarter and by 1.3 percent versus the second quarter level last year.
Likewise, implied land values in the Ortigas Center rose one percent quarter-on-quarter and 4.3 percent year-on-year to P125,169 per sqm.
For the second half of 2011, Colliers said it expects land values to rise more than three percent given the continued high interest in Makati properties.
The report noted that land values are presently at about 63 to 65 percent of their 1997 levels in nominal terms, but only about 30 to 31 percent of their 1997 levels in real terms.
“At this point in time, there is no cause for concern,” Tetangco said.
He pointed out that authorities are ready to put in place measures to curb additional inflationary pressures brought about by strong foreign capital inflows into emerging markets, including the Philippines, as a result of the uncertainties in advanced economies.
“Nonetheless, we are monitoring that (property prices). We want to make sure liquidity is just in the right level,” he added.
Monetary authorities are closely watching foreign exchange flows to check if any resulting domestic liquidity would be in excess and translate to upward pressure in real and financial assets.
“At this point in time, there is no cause for concern,” Tetangco said.
He pointed out that authorities are ready to put in place measures to curb additional inflationary pressures brought about by strong foreign capital inflows into emerging markets, including the Philippines, as a result of the uncertainties in advanced economies.
“Nonetheless, we are monitoring that (property prices). We want to make sure liquidity is just in the right level,” he added.
Monetary authorities are closely watching foreign exchange flows to check if any resulting domestic liquidity would be in excess and translate to upward pressure in real and financial assets.
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