Bsp-Residential Real Estate Prices Decline YOY in Q2 2021.

ENPNewswire-September 27, 2021--Bsp-Residential Real Estate Prices Decline YOY in Q2 2021

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Release date- 24092021 - ?Nationwide residential property prices down 9.4% YoY, but up 4.8% QoQ in Q2 2021.

The residential real estate prices of various types of new housing units in the Philippines declined for two consecutive quarters, based on the year-on-year (YoY) growth of the Residential Real Estate Price Index (RREPI). In Q2 2021, the nationwide house prices contracted by 9.4 percent YoY (from -4.2 percent in Q1 2021) due to the continued effects of the pandemic on the residential property demand. High base effects may also have contributed to the drop in prices given the registered peak of the index in Q2 2020.1 In contrast, property prices increased by 4.8 percent quarter-on-quarter (QoQ) (Figure 1).2

Q2 2021 RREPI Figure1.jpg

By area, NCR residential property prices slump YoY, but NCR and AONCR rise QoQ

The YoY contraction in the nationwide residential property prices was driven mainly by the downtrend of property prices in the NCR, which fell by 18.3 percent relative to Q2 2020, marking four consecutive quarters of decline since Q3 2020 (Figure 1). The decline emanated from the negative price changes of single detached, condominium and townhouse units in the NCR. In the case of duplex housing, no bank loans were granted and reported to the BSP in Q2 2021.3

Likewise, property prices in AONCR decreased marginally by 0.6 percent YoY as the drop in the prices of single detached/attached houses more than offset the growth in the prices of townhouses, duplexes, and condominium units. On a QoQ basis, house prices grew in NCR (by 3.4%) and AONCR (by 5.1%), following the national trend.

By type of housing units, YoY drop is largely driven by the fall in prices of condominium units and single detached houses

The 9.4 percent YoY drop in the nationwide RREPI was primarily driven by the fall in prices of condominium units and single detached/attached houses, at 14.3 percent and 7.4 percent, respectively, in Q2 2021. This is the fourth consecutive quarter that prices of condominium units declined, owing mainly to the lackluster demand for condominium units in NCR. In contrast, prices of duplexes and townhouses increased by 28.9 percent and 15.1 percent, respectively (Figure 2).

Q2 2021 RREPI Figure2.jpg

Meanwhile, the QoQ growth of 4.8 percent in the RREPI was attributed to the higher prices of all...

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