By Tracy Cabrera
File photo of a row of housing units. (Photo: Philippine News Agency)
MANILA — The global real estate industry is teetering on a meltdown, with raging inflation caused by spikes in oil prices compounded by the Ukraine war, stock market turmoil, rapidly rising interest rates, and soaring borrowing costs, the local real estate sector is suffering a severe meltdown but still, the housing industry has registered positive developments as the residential segment continue to maintain its growth momentum in the first quarter of the year.
According to the Q1 2022, Consumer Expectations Survey (CES), the Residential Real Estate Price Index (RREPI) has risen by 5.6 percent from a year ago yet declined by 1 percent from the previous quarter. The year-on-year (YoY) increase in the RREPI is consistent with the outcome of the CES, which showed a higher percentage of consumers preferring to buy real estate property in the first quarter of 2022.
Meanwhile, the CES also disclosed that residential property prices in the National Capital Region (NCR) increased by 9.5 percent YoY, primarily driven by the increase in the prices of condominium units and townhouses, which more than offset the decrease in the prices of duplex housing units and single-detached/attached houses.
Similarly, property prices in areas outside the NCR increased by some five percent as all housing units registered an upturn. On a quarter-on-quarter (QoQ) basis, trends were mixed as residential property prices rose by 3.5 percent in the NCR but declined by 2.1 percent in the Areas Outside the NCR (AONCR).
In addition, the CES survey also showed indications that in the first quarter of 2022, the 5.6 percent YoY growth in the nationwide RREPI was mainly driven by the rise in the prices of townhouses, duplex housing units, and condominiums units, increasing by 25.6 percent, 20.9 percent, and 14.7 percent, respectively. Conversely, prices of single-detached/attached houses contracted by 2.5 percent. (ai/mtvn)