Residential real estate prices of various types of new housing units in the Philippines continued to increase in Q2 2024. Residential property prices rose 2.7% year-on-year (YoY), albeit slower than the 6.1% growth in Q1 2024. On a quarter-on-quarter (QoQ) basis, housing prices grew faster at 1.8% than the 1.1% growth in Q1 2024.
On a year-on-year (YoY) basis, residential property prices in the National Capital Region (NCR) contracted by 1.0% in Q2 2024, with the decline in the prices of single-detached/attached houses outweighing the increase in the prices of townhouses and condominium units.
By contrast, residential property prices in Areas Outside the NCR (AONCR) increased by 4.2%. This growth was driven by the annual price increases in duplex housing units, single-detached/attached houses, and condominium units, which surpassed the decline in townhouse prices.
On a quarter-on-quarter (QoQ) basis, residential property prices in the NCR and AONCR rose by 3.8% and 1.2%, respectively.
By housing type (excluding the duplex housing units), condominiums registered the highest YoY growth rate of 10.6% in Q2 2024, followed by a 1.7% growth in single-detached/attached houses. Meanwhile, townhouses registered a contraction of 0.8%.
On a QoQ basis, price increases across housing types in Q2 2024 were mixed. Condominium units grew the fastest at 4.2%, followed by single-detached/attached houses at 3.2%, while duplex housing units and townhouses registered a 2.3% and 2.6% decline, respectively.
In Q2 2024, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines contracted by 3.5% YoY. Specifically, loans granted in the NCR decreased by 9.2 percent, while those in AONCR declined marginally by 0.8%. On a QoQ basis, nationwide housing loan availments fell by 15.1%, following the decline in the NCR and AONCR of 11.5% and 16.6%, respectively.
The total number of RRELs granted in the Philippines decreased by 3.2% YoY, reflecting the 0.9% and 4.2% contractions in the NCR and AONCR, respectively. Similarly, the total number of transactions decreased by 9.9% QoQ as the 14% decline in RRELs in AONCR negated the 1.4% growth in the NCR.
In Q2 2024, the appraised value of new housing units in the country averaged P83,759 per square meter (sqm), registering 6.8% and 1.8% growth rates over the comparable year-ago and quarter-ago levels, respectively. Similarly, the average appraised value per sqm in the NCR increased by 9.6% YoY and 5.6% QoQ to P140,158 per sqm. Meanwhile, the average appraised value per sqm in AONCR expanded by 7.8% YoY but declined by 4.0% QoQ to P58,741. It may be noted that the average appraised value of properties in the NCR is more than twice that in the AONCR.
The weight of each type of housing unit in the RREPI is determined by dividing the total floor area (in sqm) of a specific type of housing unit over the total floor area of all housing types.4 In Q2 2024, single-detached/attached houses constituted the largest weight in the RREPI at 49.3%. Meanwhile, townhouses, condominiums, and duplex housing units accounted for 25.9%, 24.4%, and 0.4% in the calculation of the RREPI, respectively.
In Q2 2024, 78.7% of residential real estate loan (RREL) transactions were used to purchase new housing units. By type of housing unit, most of the residential property loans were used to acquire single-detached/attached houses at 47.9%, followed by condominium units (32.5%), and townhouses (19.3%).
Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in AONCR were for the purchase of single-detached/attached houses. By region, 29.7% of the total RRELs granted were from the NCR.
The other regions that contributed significantly to the number of RRELS granted were CALABARZON (30.1%), Central Luzon (13.0%), Central Visayas (8.0%), Western Visayas (7.0%), Davao Region (4.4%), and Northern Mindanao (3.3%). The said regions, including the NCR, comprised 95.5% of the total housing loans granted by banks.
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