BSP Deputy Governor Diwa Guinigundo
Guinigundo said real property price movements in the National Capital Region
and areas outside NCR relatively follow the same pattern from the first quarter
to the third quarter in 2015 with growth rates in AONCR at the lowest.
File photo
Lawrence Agcaoili (The Philippine Star)
- June 6, 2016 - 12:01am
MACTAN, Cebu, Philippines – The
country’s property sector remained vibrant in the first quarter, according to
the Residential Real Estate Price Index (RREPI).
Bangko Sentral ng Pilipinas (BSP) Deputy
Governor Diwa Guinigundo told participants in the central bank’s 12th Media
Lecture Series the RREPI increased 9.2 percent in the first quarter from 5.1
percent in the fourth quarter of last year.
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The RREPI in the National Capital Region
(NCR) went up to 9.7 percent from 6.3 percent, while that of areas outside NCR
(AONCR) increased to 9.4 percent from 5.9 percent.
“This represents a vibrant housing
industry in the Philippines and the robustness of this conclusion is confirmed
by the trends in consumer prices as well as the recent result of the Consumer
Expectation Survey,” he said.
The Consumer Expectations Survey (CES)
for the first quarter showed the overall confidence index rising to -5.7
percent from -8.1 percent in the fourth quarter of last year, matching the
all-time high of -5.7 percent recorded in the second quarter of 2013.
The robust confidence of Filipino
consumers was attributed to the higher election-related spending.
Guinigundo said real property price
movements in NCR and AONCR relatively follow the same pattern from the first
quarter to the third quarter in 2015 with growth rates in AONCR at the lowest.
He pointed out year-on-year growth of
real property prices in AONCR increased at a faster rate starting in the third
quarter of last year due to higher growth rates in prices of townhouses and
condominium units.
He said condominium units posted the
highest year-on-year growth in prices at 12.9 percent followed by townhouses at
8.5 percent.
Furthermore, about seven out of 10
residential real estate loans granted were for the purchase of new housing
units.
“Condominium units were the most common
house purchases in NCR, while in AONCR, single detached houses were the most
popular,” he said.
Data showed NCR accounted for half or
50.4 percent of the residential real estate loans granted in the first quarter
followed by Calabarzon with 28.4 percent, Central Luzon with 7.6 percent,
Western Visayas with 3.8 percent, and Central Visayas with 3.3 percent.
“Because of the vibrant nature of the
housing industry, asset price inflation is quite remote because it is driven by
robust demand, not oversupply,” Guinigundo said.
The BSP started collecting data from
banks last November through the issuance of a circular requiring all universal
and commercial banks as well as thrift banks to submit quarterly reports on
Residential Real Estate Loans granted to help detect macro-prudential risks
stemming from the real estate market.
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 availability of data on property
prices is one of the information gaps identified in the Group of Twenty (G-20)
report following the Global Financial Crisis, and is also included in the
Special Data Dissemination Standard (SDDS) Plus categories under Financial
Soundness Indicators that member countries of the International Monetary Fund
should adhere to within five years from the time the country signifies its
intent to participate in this global undertaking.
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