Average Philippine housing prices remained relatively stable in the second quarter of this year, with a closely watched index inching up only slightly thanks to fresh demand for condominium units in Metro Manila, the Bangko Sentral ng Pilipinas said.

In a press statement, the central bank said residential real estate prices grew marginally by 0.4 per cent year-on-year in the April-to-June period of this year – reflected in the increase in Residential Real Estate Price Index, which rose to 117.5 from 117 during the same period last year.

The year-on-year prices across most types of housing units increased, except for single detached/attached houses, which declined by 4.2 per cent.

Prices of duplexes, condominium units and townhouses – which collectively accounted for 58.7 per cent of total new housing units reported – grew by 12.5 per cent, 9.6 per cent and 4.3 per cent, respectively, compared to the second quarter of last year.

On a quarterly basis, the real estate price index edged lower to 117.5 from 120 as all types of housing units registered price decreases, except for condominium units, which recorded a growth.

By area, the average residential property prices in Metro Manila increased by 5.2 per cent, while those of provincial areas declined by 1.1 per cent in the second quarter of this year compared to prices during the same period last year.

In Metro Manila, the higher growth in prices of duplexes and condominium units offset the decline in prices of single-detached houses and townhouses. In areas outside Metro Manila, meanwhile, the drop in prices of single-detached houses outweighed the increase in prices of other types of housing units.

For the second quarter of this year, 73.4 per cent of residential real estate loans were for the acquisition of new housing units. By type of housing units, 45.8 per cent of these loans were for the purchase of condominium units, followed by single detached/attached houses (43 per cent) and townhouses (10.5 per cent).

By area, most of the property loans granted in the Metro Manila were for the purchase of condominium units, while loans granted in provincial areas were mostly for single detached/attached houses.

By region, Metro Manila accounted for 43 per cent of the total number of real estate loans granted, followed by the provincial areas of Calabarzon (27.4 per cent), Central Luzon (8.9 per cent), Central Visayas (six per cent), Western Visayas (4.3 per cent), Northern Mindanao (3.3 per cent) and the Davao region (three per cent).

Together, Metro Manila and these six other regions accounted for 95.9 per cent of total housing loans granted by banks.

PHILIPPINE DAILY INQUIRER