Property Prices Drop As Duplex and Condo Prices in PH Decline
PH Housing Prices Decrease With Slump in Condo and Duplex Unit Prices
According to the Bangko Sentral ng Pilipinas, housing prices decreased for the first time since 2021 due to a decline in prices of condominiums and duplex housing units during the third quarter. After three years, the residential real estate price index has seen yet another drop – an indicator that helps assess the current credit market and real estate conditions in the Philippines. Let’s see how much it dropped in the last three years and could it be a good sign to acquire a new property for Filipino buyers.
Positive Growth in RREPI
In the third quarter of 2024, the RREPI decreased by 2.3% - that’s 163.9 from 167.7 in the same quarter of 2023. Since the decline of 9.4% in the second quarter three years ago, the index narrowed for the first time given the drop in prices of condos and duplexes. The RREPI quarterly dropped by 1.6%, creating a positive growth in two consecutive quarters. During the first quarter of 2016, the RREPI was launched to indicate the trends in the Philippine credit and real estate market. The data is based on the actual mortgage loans from banks to help buyers get new properties, except for foreclosed and pre-owned housing units.
Price Drop for Duplex and Condo Units
The decline in housing prices was due to the decreased prices of duplexes and condominiums in the country. BSP data shows that duplex unit prices dropped by 48.1% - that’s 136.1 from 262.4 during the third quarter of 2024. It recorded the lowest year-on-year growth rate for all types of housing units in the country. On the other hand, the loan transaction percentage for duplexes was only 0.15% of the new units sold totaling 6,626 during the third quarter of the previous year.
BSP mentioned that the majority of loan transactions for duplexes accounted for low-value housing units, significantly dropping the average price. Records show that 90% of duplex properties acquired through loans were assessed below the Php 40,941 per square meter three-year average. Same with condo prices which declined by 9.4%, that’s 205.6 from the 226.9 in the third quarter of 2024.
RRELs For New Properties Dropped As Well
In NCR, housing prices went down by 14.6%, which is 172.5 from 201.9 during the third quarter of last year. Residential real estate loans for new properties in the country also declined by 15.7% during the third quarter of 2024. However, the annual contraction in RRELs wasn’t comparable to the severe decline of housing loans in 2020. Loan transactions for single houses slumped by 24.5%, while duplexes dropped by 76.7%. RRELs for condominiums declined by 13.2% and townhouses decreased by 0.7%.
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