The Bangko Sentral ng Pilipinas (BSP) released
today residential real estate price indices (RREPI) which could serve as a
measure in assessing the trends in housing prices. Under BSP Circular No.
892 dated 16 November 2015, the BSP requires all universal/commercial banks
(UBs/KBs) and thrift banks (TBs) in the Philippines to submit bank
quarterly report on Residential Real Estate Loans (RRELs) granted for the
generation of RREPI. Out of the 109 banks covered, 93 banks or 85.3 percent
(consisting of 40 U/KBs and 53 TBs) submitted their reports to the BSP
during the first quarter of 2016.
The construction of RREPI based on banks’
approved housing loan applications is a first in the Philippines and is
expected to provide a valuable tool in assessing the real estate and credit
market conditions in the country.
The RREPI measures the average changes in
prices of different types of housing units over a period of time across
different geographical regions where the growth rate of the index measures
house inflation. The RREPI is computed as weighted chain-linked index
based on the average appraised value per square meter weighted by the share
of floor area of housing units. In addition to the overall RREPI,
sub-indices were constructed for the different types of housing units
(single, duplex, apartments and residential units). The generation of RREPI
by different types of housing units is relevant due to their often different
price evolutions. These indices cover areas in the National Capital
Region (NCR) and areas outside the NCR (AONCR).
Highlights of the Results RREPI
increased by 9.2 percent in Q1 2016 from its year-ago level. Real
property prices in NCR and AONCR increased by 9.7 percent and 9.4
percent, respectively (Table 1).
property price movements in NCR and AONCR relatively follow the same
pattern from Q1 2015 to Q3 2015 with growth rates in AONCR at the
Q3 2015, year-on-year growth of real property prices in AONCR
increased at a faster rate due to higher growth rates in prices of
townhouses and condominium units.
units posted the highest year-on-year growth in prices at 12.9 percent
followed by townhouses at 8.5 percent;
7 out of 10 residential real estate loans granted were for the
purchase of new housing units;
units were the most common house purchases in NCR while in AONCR,
single detached houses were the most popular; and
region, NCR accounted for half (50.4 percent) of the residential real
estate loans granted in Q1 2016, followed by Calabarzon (28.4
percent), Central Luzon (7.6 percent), Western Visayas (3.8 percent),
and Central Visayas (3.3 percent).Frequency of Publication and Date of ReleaseThe RREPI is available one quarter after the
reference quarter. Available quarterly series are from second quarter
of 2015 to first quarter of 2016.
Table 1. RREPI based on bank reports
on residential real estate loans: Q2 2014 – Q1 2016
1. Residential Real Estate Price Index (Q1
2. Residential Real Estate Price Index Growth
Rates (%, y-o-y)
3. Residential Real Estate Price Index Growth
Rates (%, q-o-q)