Residential real estate prices for various types of housing units, as measured by the Philippine central bank’s Residential Real Estate Price Index, rose by 10.4 per cent in the third quarter of last year thanks to a surge in the value of condominium units, according to the Bangko Sentral ng Pilipinas (BSP).

In a statement, the bank regulator noted this pace was faster than the 0.4-per cent growth during the second quarter of last year and the 4.5-per cent recorded in the third quarter of 2018.

“This was also the highest growth rate observed since the first quarter of 2016,” the BSP said, adding that the increase in property prices was “evident across all types of housing units”.

Prices of condominium units in the third quarter of last year registered the highest growth rate since the first quarter of 2016 at 29.1 per cent. This was followed by duplexes at 24.8 per cent, single detached or attached houses at 2.4 per cent and townhouses at 6 per cent.

On a quarter-on-quarter basis, the real estate price index rose by 9.5 per cent, with all types of housing units registering price increases over the quarter.

Year-on-year, residential property prices are higher in the National Capital Region and in provincial areas.

The average residential property prices in the third quarter of last year in both the Metro Manila and provincial areas increased by 22.2 per cent and 4.9 per cent, respectively, compared to year-ago prices.

In the capital, the increase in prices of duplexes and condominium units outweighed the decline in prices of single detached houses and townhouses. Meanwhile, price increases were observed across all types of housing in the provinces.

For the third quarter of last year, the purchase of new housing units accounted for 74 per cent of residential real estate loans. By type of housing units, more than half (51.8 per cent) of residential property loans were used for the acquisition of condominium units, followed by single detached or attached houses (38.1 per cent) and townhouses (9.5 per cent).

Most of the real estate loans granted in Metro Manila were intended for the purchase of condominium units (43.1 per cent), while loans granted in provincial areas were mostly obtained for the purchase of single detached or attached houses (35.5 per cent).

By region, Metro Manila accounted for 48.7 per cent of the total number of real estate loans granted during the quarter, followed by provincial areas like Calabarzon (25.1 per cent); Central Luzon (7.6 per cent); Central Visayas (6.5 per cent); Western Visayas (3.6 per cent); Davao Region (2.8 per cent); and Northern Mindanao (2.3 per cent).

Together, Metro Manila and these six other regions accounted for 96.6 per cent of total housing loans granted by banks.

Philippine Daily Inquirer/ANN