By Kathleen A. Martin (The Philippine Star) | Updated May 25, 2015 - 12:00am
MANILA, Philippines - A new residential real estate price index may be released before the end of June, the Bangko Sentral ng PIlipinas said.
“The series should be available to the public before the end of the second quarter,” BSP Governor Amando M. Tetangco Jr. told reporters.
The BSP earlier said the index would track property prices in Metro Manila and nearby provinces. There are plans, however, to expand the coverage to other key cities in the country.
“To be able to assess the state of the real estate sector, we need another model to evaluate the bubble component of the RRPI. That is the next part of the project,” Tetangco said.
The BSP has been continuously monitoring banks’ exposure to the housing sector to ensure there are no bubbles in the industry amid the sustained rise in prices of houses, offices, and lots.
Latest BSP data showed banks’ exposure to the real estate exposure went up 21 percent to P1.221 trillion in 2014 from P1.006 trillion in 2013.
Real estate loans accounted for the bulk of the banks’ exposure to the real estate sector at P1.043 trillion, while investments in the property market accounted for the remaining P178.028 billion.
A BSP survey of banks last month indicated that lenders implemented stricter rules for borrowings to the real estate sector during the first quarter.
Respondent banks cited stringent regulatory rules on exposure to the sector, and their reduced tolerance for risk for the tightening of credit standards for loans for commercial property.