RESIDENTIAL property price growth contracted for the first time in three years in the third quarter, the Bangko Sentral ng Pilipinas (BSP) reported late last Friday.
The Residential Real Estate Price Index fell by 2.3 percent for the three-month period, reversing from the 2.7-percent and 12.9-percent expansions, respectively, seen in the second quarter and a year earlier.
Quarter on quarter, housing prices were down 1.6 percent after growing by 1.8 percent in April to June.
Duplex housing units saw prices plunge by 48.1 percent, in particular, while condominium units also fell by 9.4 percent, outpacing the 2.9-percent and 0.7-percent upticks for single-detached/attached and townhouses, respectively.
Compared to the second quarter, only single-detached/attached houses registered higher prices ( 2.6 percent) while other housing types fell: duplex housing units (46.6 percent), townhouses (5.3 percent) and condominium units (5.3 percent).
By area, residential property prices fell by 14.6 percent in the National Capital Region (NCR) following declines for duplex housing units (-37.6 percent), single-detached/attached houses (-22.9 percent) and condominium units (-14.3 percent), which offset an increase in townhouse prices (13.9 percent).
Prices outside the NCR rose 3.0 percent, driven by increases in single-detached/attached houses (6.7 percent) and condominium units (3.6 percent) that outweighed declines in duplex housing units (-51.5 percent) and townhouse prices (-2.3 percent).
Compared to the previous quarter, housing prices fell by 3.7 percent and 1.0 percent, respectively, in the NCR and elsewhere.
Meanwhile, residential real estate loans (RRELs) for new housing plunged by 15.7 percent from a year earlier. Broken down, the drop was a larger 20.3 percent in the NCR and hit 13.0 percent outside the metropolis.
The double-digit contractions, the BSP said, were “significant, yet not as severe as the decline in housing loan availment observed during the pandemic, which began in Q2 2020.”
“This is also consistent with the outcome of the Q3 2024 Consumer Expectations Survey (CES), which showed consumers’ more pessimistic view on buying a house and lot during the period,” it added.
Quarter-on-quarter, housing loans increased by 3.1 percent nationwide. Loans in the NCR rose by 15.8 percent, offsetting a 2.4 percent drop in the rest of the country.
The BSP said that this matched its Senior Bank Loan Officers’ Survey that found higher demand for housing loans.
The average appraised value of new housing units, meanwhile, was P86,417 per square meter in the third quarter, down 6.2 percent from last year but up 3.2 percent from the previous quarter.
In the NCR, the average value dropped 13.7 percent year on year and 3.6 percent quarter on quarter to P135,076 per sqm. Outside the metropolis, this rose 10.1 percent on an annual basis and 3.5 percent quarter on quarter to P60,804.
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