The Philippine real estate sector remained vibrant in the first quarter of the year on the heels of a growing economy, results of the central bank’s new index for the growth of real estate prices showed.
Presenting the maiden results of the residential real estate price indices (RREPI), Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo noted housing prices rose by 9.2 percent in January to March from a year earlier.
The RREPI measures the average changes in prices of different types of housing units (single-detached, complex, condominiums, and townhouses) over a period of time, across different geographical regions for regulators to monitor the industry.
“The 9.2 percent represents a vibrant housing industry in the Philippines,” Guinigundo told reporters in Cebu over the weekend.
The RREPI is computed as the average appraised value per square meter through information collected by the BSP from quarterly reports of Philippine lenders since 2015.
While property prices in Metro Manila increased by 9.7 percent, those in areas outside the NCR (AONCR) rose by 9.4 percent, the same data showed.
Given the still limited information available, Guinigundo said the current data is “not enough” to come up with conclusive findings.
He noted, however, that more substantive data will be collected in the future.
“Over time this becomes more useful and it gives you a snapshot of the real estate financing sector… We’re just beginning for this activity and we hope that this will add more value in understanding the housing sector,” Guinigundo said.
For his part, BSP Governor Amando M. Tetangco Jr. said the results have not been alarming so far.
“While we believe that there’s no real estate bubble right now, we want to continue to monitor the property sector… The residential real estate price index will help us do that,” he said on the sidelines of a financial forum also in Cebu. – VDS, GMA News