BSP releases residential real estate price index for Q4 2023

The Bangko Sentral ng Pilipinas (BSP) has published its latest Residential Real Estate Price Index (RREPI) report for the fourth quarter of 2023, providing a comprehensive analysis of the country’s housing market trends. According to the report, the nationwide residential property prices experienced a year-on-year increase of 6.5% in Q4 2023, despite a quarter-on-quarter contraction of 3.6%.

The report highlights regional disparities in price movements. In the National Capital Region (NCR), property prices rose by 4.3% year-on-year, primarily due to increases in the prices of single-detached/attached houses and townhouses, which offset the decline in condominium unit prices. Similarly, Areas Outside the NCR (AONCR) saw a 7.8% growth in residential property prices, driven by annual increases across all housing types, except for duplex units.

By housing type, the BSP report indicates varied performance. Single-detached/attached houses led with the highest year-on-year growth rate at 9.5%, followed by townhouses and condominium units. Conversely, duplex housing units witnessed a significant drop in prices.

Furthermore, the report outlines the growth in loan availments for new housing units, highlighting a 30.5% increase year-on-year and a 26.9% rise quarter-on-quarter nationwide. This growth reflects the dynamic demand within the housing market. The average appraised value of new housing units across the country also saw a notable increase compared to the previous year.

Most of the Residential Real Estate Loans (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, 30.7 percent of the total number of RRELs granted were from the NCR. The other regions, that contributed significantly to the number of RRELS granted, were as follows: CALABARZON (33.1 percent), Central Luzon (12 percent), Western Visayas (5.8 percent), Central Visayas (5.3 percent), Davao Region (5.2 percent), and Northern Mindanao Region (1.9 percent). The said regions, including the NCR, comprised 94 percent of the total housing loans granted by banks. 

The RREPI, which measures the average change in the prices of various types of housing units based on banks’ mortgage loan data, is a vital tool for assessing real estate and credit market conditions in the Philippines. This latest report underscores the continued interest in the residential real estate market, providing valuable insights for potential homeowners, investors, and policymakers.

About the report 

The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country. The BSP has been releasing the report since June 2016. 

Data for the RREPI are obtained through BSP Circular No. 892 dated 16 November 2015, which requires all universal/commercial banks (UBs/KBs) and thrift banks (TBs) in the Philippines to submit to the BSP a quarterly report on all RRELs granted. This was supplemented by the BSP Circular No. 1154 dated 14 September 2022, which requires all digital banks (DBs) in the country to submit similar reports to the BSP.