THE residential real estate prices of various types of new housing units in the Philippines continued to grow faster in Q1 2023 at 10.2 percent year-on-year (YoY), but grew at a slower pace of 1.4 percent quarter-on-quarter (QoQ), compared with the Q4 2022 results.
On a YoY basis, growth in residential property prices in the National Capital Region (NCR) slowed to 7.3 percent as the price decline in condominium units dampened the price increases in duplexes, single-detached/attached houses, and townhouses. Meanwhile, in the Areas Outside the NCR (AONCR), residential property prices rose by 11.4 percent, with prices of all types of housing units rising, except for those of townhouses.
On a QoQ basis, residential property prices expanded by 4.4 percent in the AONCR, but contracted by 4.3 percent in the NCR.
Prices of all housing types increase
By housing type, prices of duplex housing units, single-detached/attached houses, townhouses, and condominium units contributed positively to the YoY growth in the nationwide RREPI as the indices increased by 22.1 percent, 17.0 percent, 1.8 percent, and 1.2 percent, respectively.
Meanwhile, the 1.4 percent QoQ growth in the RREPI was attributed to the higher prices of single-detached/attached houses (by 4.7 percent) and townhouses (by 3.8 percent).
However, prices of duplex housing units and condominium units declined by 16.4 percent and 5.1 percent QoQ, respectively.
In Q1 2023, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines grew by 16 percent YoY as RRELs in the NCR and AONCR increased by 16.5 percent and 15.7 percent, respectively.
However, on a QoQ basis, the nationwide growth in housing loan availments fell by 9.1 percent, following the 13.2 percent and 7.1 percent drop in RRELs in the NCR and AONCR, respectively
The average appraised value of new housing units in the country stood at P73,724 per square meter (sqm) in Q1 2023. The average appraised value per sqm in the NCR was at P123,053, higher than both the national average and the average appraised value in the AONCR at P51,459.
The weight of each type of housing unit in the RREPI is determined by dividing the total floor area (in sqm) of a specific type of housing unit over the total floor area of all housing types. In Q1 2023, single-detached/attached houses in the RREPI continued to constitute the largest weight at 53.2 percent.
Meanwhile, townhouses, condominium units, and duplex housing units accounted for 23.4 percent, 22.6 percent, and 0.7 percent, respectively.
In Q1 2023, 80.5 percent of residential real estate loan (RRELs) transactions were used to purchase new housing units.
Meanwhile, by type of housing unit, most of the residential property loans were used for the acquisition of single-detached/attached houses (47.8 percent), followed by condominium units (32.8 percent) and townhouses (18.9 percent).
