MANILA—The pace of growth in residential real estate prices in the Philippines slowed in the second quarter of 2024, according to the latest data, marking a deceleration from the robust expansion seen during the same period last year.
According to Philippines News Agency, the Residential Real Estate Price Indices (RREPI) released by the Bangko Sentral ng Pilipinas (BSP) on Friday indicated a 2.7 percent year-on-year increase in prices during the quarter. This rate is notably slower than the 14.1 percent surge recorded in 2023 and also represents a deceleration from the 6.1 percent growth observed in the first quarter of 2024. However, on a quarter-on-quarter basis, housing prices saw a faster increase of 1.8 percent compared to 1.1 percent in the previous quarter.
The report highlighted regional disparities, with the National Capital Region (NCR) experiencing a 1.0 percent contraction in residential property prices, driven by a decrease in the prices of single-detached/attached houses which offset increases in townhouses and condominium units. Conversely, Areas Outside the NCR (AONCR) recorded a 4.2 percent increase, spurred by price rises in duplex housing units, single-detached/attached houses, and condominium units, despite a downturn in townhouse prices.
Detailed by housing types, condominiums led with the highest growth rate at 10.6 percent, followed by single-detached/attached houses at 1.7 percent. Townhouses, however, showed a slight decline of 0.8 percent. The BSP also noted that the overall number of residential real estate loans (RRELs) for new housing units contracted by 3.5 percent, with a more significant drop of 9.2 percent in loans within the NCR and a marginal 0.8 percent decline in the AONCR.
Additionally, the appraised value of new housing units averaged PHP 83,759 per square meter, marking an increase of 6.8 percent from the previous year and 1.8 percent from the previous quarter. The average appraised value per square meter in the NCR rose by 9.6 percent to PHP 140,158, while in the AONCR, it increased by 7.8 percent to PHP 58,741.
This trend of moderated growth suggests a stabilizing real estate market in the Philippines, influenced by various economic factors and regional market dynamics.