Though the Philippines’ property market is booming, this doesn’t mean that prices of all types of residential real estate are on the rise.
This is evident from the Bangko Sentral ng Pilipinas (BSP)’s latest residential real estate price index (RREPI), which showed diverging trends for different types of houses.
On average, the index showed that residential real estate prices in the entire country rose 5.7 percent in the fourth quarter of 2017 from the same period the previous year.
But there is wide variance beneath the average number.
The largest price increase came from duplex houses in Metro Manila, which grew 138.1 percent year-on-year price in the fourth quarter of 2017. Duplex houses outside Metro Manila saw a much more modest growth of 0.3 percent in the same period.
Prices for residential condo units grew 15.2 percent year-on-year within NCR and 8.4 percent outside the region. According to Joey Bondoc, research manager at Colliers Philippines, this is due to price increases in more expensive condominium developments as well as the large take-up of projects in 2017.
"We saw a faster increase in the prices of mid-income, luxury and upscale condominium projects. These are the condominium units with prices ranging from Php3.2 million and up," Bondoc told Entrepreneur Philippines via email. He added: "Given the record take-up, it was not surprising to see prices rise to record levels as well."
On the other hand, prices for single detached or attached houses fell 9.9 percent in Metro Manila and rose a marginal 0.8 percent outside the metropolis.
Similarly, townhouses fell by 8.6 percent in Metro Manila but rose 20.1 percent outside the NCR.
Published every quarter since Q2 2015, the RREPI is a measure of real estate prices that the BSP sources from housing loan reports submitted by its member banks. Using Q1 2014 as a baseline, the report details how prices of four different residential housing types change every quarter, providing data for NCR and areas outside NCR.
Lorenzo Kyle Subido is a staff writer of Entrepreneur PH