Wealth

What Kind of Real Estate Should You Invest In Now?

Average housing prices fell in the second quarter from a year ago but some types of residential units continue to rise.
IMAGE pixabay.com
Comments


.

For the first time since the Bangko Sentral ng Pilipinas (BSP) started reporting its Residential Real Estate Price Index (RREPI) in 2014, the widely watched indicator fell 4.6 percent from year-ago levels in the second quarter.

The RREPI, which is considered the most authoritative indicator of average housing prices in the Philippines, has been growing steadily from year-ago levels since at least the second quarter of 2016. From the second quarter of 2016 to the first quarter of 2017, the index went up by an average of 3.8 percent on an annual basis. Compared to the previous quarter, the RREPI also fell by 0.1 percent in the second quarter.

ADVERTISEMENT - CONTINUE READING BELOW

It remains to be seen if the year-on-year decline in RREPI signals a prolonged softening of housing prices in the Philippines. Property brokers and consultants still believe that the country’s positive economic outlook and the growth in demand for properties will continue to push residential property prices upwards in the next few years.

However, certain types of housing units continue to enjoy strong price growth.

Duplex houses in NCR still posted an 11.9-percent increase in the second quarter from a year ago. The same type of houses in other regions rose by 7.2 percent from the previous year.

Even residential condominiums, perhaps the most popular of the various types of housing units, continued to go up by 5.2 percent from a year ago in NCR and a stronger 7.1 percent outside Metro Manila.

Single detached houses eased the most, with units in Metro Manila going down by 6.1 percent from a year ago while units outside the region dropped 10.3 percent. Townhouses in Metro Manila also fell a slight 0.9 percent from a year ago but the same housing type went up by 5.5 percent outside the NCR. 

ADVERTISEMENT - CONTINUE READING BELOW

The BSP has published the RREPI since the second quarter of 2015. It gathers data from housing loan reports submitted by its member banks. In a media release published September 29, 2017, it added that over 75 percent of real estate loans in Q2 2017 were for purchasing new houses.

This story originally appeared on Entrepreneur.com.ph.

* Minor edits have been made by the Esquiremag.ph editors.

Comments
View More Articles About:
Recommended Videos
About The Author
Lorenzo Kyle Subido for Entrepreneur.com.ph
Lorenzo Kyle Subido is a staff writer for Entrepreneur Philippines.
View Other Articles From Lorenzo Kyle
Comments
Latest Feed
 
Share
The most versatile item in your wardrobe care of Gucci, Common Projects, Nike and more.
 
Share
Anino Comics launches Book 2 of innovative local superhero comic.
 
Share
This Neo-Renaissance house once served as dormitory to a young Manuel Quezon.
 
Share
Created in tribute to the RAF's aerobatic team, it's a taste of the sky even for those of us on the ground
 
Share
Here's how to wear bright blue, red, camo, and even fuschia.
 
Share
The DILG has ordered local government to toughen up on trikes.
 
Share
You've got the weight loss resolution. Now, you just need the footwear
 
Share
 
Share
The project is aligned with government's thrust to make the Philippines a spacefaring nation.
 
Share
Featuring wardrobe essentials with technical and outdoor details.
Load More Articles
Connect With Us