By
Melissa Luz T. Lopez, Senior Reporter
Posted
on April 03, 2017 [ bworldonline.com ]
HOUSING
PRICES stood barely changed by the end of 2016, with lower costs tallied within
Metro Manila against minimal upticks recorded in the provinces during the
fourth quarter, latest data from the Bangko Sentral ng Pilipinas (BSP) showed.
Residential
property prices went up by a mere 0.3% between October and December 2016 from a
year ago, which is the slowest pace ever seen under the central bank’s
residential real estate price index (RREPI). The rate slowed down from a 2.2%
increase in the third quarter and a 5.2% uptick during the comparable year-ago
period, and is the slowest since the earliest available data from the second
quarter of 2015.
The
RREPI is the BSP’s tool that measures the average change in the home prices
across building types and locations, allowing regulators to assess overall real
estate and market conditions and monitor any looming bubbles in the property
sector.
It was
cheaper to acquire housing units within Metro Manila during the last three
months of 2016 with average prices down by 1.1% from the previous year, edging
lower than a 0.2% decline posted during the third quarter.
This
was partially offset by a 1.7% increase in the cost to acquire homes in the
provinces, even as it also slowed down from a 4.9% rise logged during the third
quarter.
By
structure type, duplex units sustained a drop in prices for the second straight
quarter as it slipped by 12.3%, coming from a 5.1% decline seen during the
July-September period and a 5.8% slide during the last three months of 2015.
Duplex
prices dropped by 8.8% within Metro Manila, against a 5.5% rise recorded in
other regions, according to BSP data.
Price
tags on single detached and attached houses also went down by 1% from a year
ago, reversing from a 2.4% increase in the third quarter and an 8.2% jump seen
during the comparable period in 2015 as prices within Metro Manila and the
provinces dropped by 8.6% and 0.2%, respectively.
Meanwhile,
rates for townhouses rose by 6.2% nationwide, led by a 16.3% jump in the
provinces where it is considered as the most popular option, the BSP said in a
statement. Townhouse prices stood steady within Metro Manila, clocking in a
mere 0.1% increase from the past year.
Condominium
units also saw a small increase in prices by 1.8%. It posted a mere 1.3% climb
in Metro Manila -- where it is the most common purchase -- against a 6.4% jump
in rates outside the capital.
BSP
Deputy Governor Diwa C. Guinigundo said the movements in housing prices largely
reflected growing demand, allaying fears that a property bubble is in the
offing.
“There
is a strong domestic demand in the Philippines for both residential and
commercial properties. We have a large shortage of housing units supported by a
big base of young, employed people especially in the services sector. As the
economy continues to grow, demand for commercial space will be sustained,” Mr.
Guinigundo said in a text message to reporters, while pointing out that real
estate developers have grown more “prudent” in building new projects in the
aftermath of the Asian financial crisis.
A
bubble forms due to a perceived rising demand in housing units that drive
developers to build more, and is said to “burst” as demand stagnates, which
will lead to an abrupt drop in property prices that could potentially jolt the
banking system.
Mr.
Guinigundo added that provinces like Cagayan de Oro and Iloilo are seeing a
construction boom, which stand as “very strong signs” of economic growth.
By
location, Metro Manila accounted for over half of the property loans during the
quarter, followed by Calabarzon with 25.6% of the total. Other regions with the
biggest share are Central Luzon (5.8%), Central Visayas (4.7%), and Western
Visayas (3.9%).
Meanwhile,
about 70.5% of property loans booked in the fourth quarter were incurred to buy
new housing units, the central bank said. Nearly half of the debts were used
for condominium purchases, followed by single detached units at 43.9%.
Townhouses took a 7.6% share, although the BSP said that loans across all
housing types grew from a year ago.
Philippine
banks granted P529.904 billion in total home loans in 2016, nearly a fifth
higher from a year ago and accounted for 34.9% of the approved property loans.
The
BSP collects RREPI data from the mandatory reports submitted by banks, which
cover the amounts and profiles of the home loans which they hand out every
quarter.
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