Residential real estate prices continue to rise in Q1 2022

The residential real estate prices of various types of new housing units in the Philippines maintained its growth momentum in Q1 2022.[1]

The Residential Real Estate Price Index (RREPI) rose by 5.6 percent from a year ago, but declined by 1 percent from the previous quarter. The year-on-year (YoY) increase in the RREPI is consistent with the outcome of the Q1 2022 Consumer Expectations Survey (CES), which showed a higher percentage of consumers preferring to buy real estate property in the first quarter of 2022 (Figure 1).[2]

By area, residential property prices in the National Capital Region (NCR) and Areas Outside the NCR (AONCR) rise YoY, but decline QoQ in the AONCR

Residential property prices in the 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 the AONCR rose by 5 percent YoY as all types of housing units registered an upturn, except for single-detached/attached houses, which posted a decline.

On a quarter-on-quarter (QoQ) basis, trends were mixed as residential property prices rose by 3.5% in the NCR, but declined by 2.1% in the AONCR (Figure 1).

By type of housing units, the prices of townhouses, duplex housing units, and condominium units rise, driving the YoY growth in property prices

In Q1 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 condominium 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 (Figure 2).

Meanwhile, the 1 percent QoQ contraction in the RREPI was due to the lower prices of townhouses (-1.7 percent) and single-detached/attached houses (-5.1 percent) (Figure 2).

Nationwide residential real estate loan availments for new housing units decrease YoY and QoQ

In Q1 2022, the number of residential real estate loans (RRELs) granted for all types of new housing units in the Philippines contracted by 9.2 percent YoY due mainly to the 39.3 percent decrease in the number of NCR RRELs.

Meanwhile, on a QoQ basis, the number of RRELs granted contracted by 30.2 percent as the number RRELs in the NCR and AONCR declined by 42.5 percent and 22.9 percent, respectively (Figure 3).

The average appraised value of new housing units in the country stood at Php69,757 per square meter (sqm) in Q1 2022.[3]  The average appraised value per sqm was higher in the NCR (at Php 120,405) than both the national and AONCR average (at Php47,161) (Figure 4).

The weight of each type of housing unit in the RREPI is determined by dividing the total floor area (in sqm) of a specific type of housing unit over the total floor area of all housing types. In Q1 2022, single-detached/attached houses in the RREPI continued to constitute the largest weight at 54.5 percent. Meanwhile, condominium units, townhouses, and duplex housing units accounted for 24.3 percent, 20.4 percent, and 0.8 percent, respectively (Figure 5).

Profile of residential real estate loans in Q1 2022

In Q1 2022, almost three-fourths (74.3%) of residential real estate loans (RRELs) were used to purchase new housing units.[4] Meanwhile, by type of housing unit, most of the residential property loans were used for the acquisition of single-detached/attached houses (47 percent), followed by condominium units (38 percent) and townhouses (14.4 percent) as seen in Figure 6.

Most of the RRELs granted in the NCR were for the purchase of condominium units, while RRELs granted in the AONCR were for the purchase of single-detached/attached houses. By region, 33.2 percent of the total number of RRELs granted were from the NCR, while the rest were distributed in the AONCR as follows: CALABARZON (32.4 percent), Central Luzon (12.6 percent), Central Visayas (5.8 percent), Davao Region (4.7 percent), Western Visayas (4.6 percent), and Northern Mindanao (1.5 percent). NCR and the said six regions combined accounted for 94.8 percent of total housing loans granted by banks (Figure 6).

About the report

The RREPI is a measure of the average change in the prices of various types of housing units, i.e., single-detached/attached houses, duplex housing units, townhouses, and condominium units, based on banks’ data on actual mortgage loans granted to acquire new housing units only. It is a chain-linked index, which is computed using the average appraised value per square meter, weighted by the share of floor area of each type of housing unit to the total floor area of all housing units. 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 Q1 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.


[1] Housing demand dampened slightly during the lockdown in January 2022, as the number of loans granted were relatively lower compared with the February and March 2022 figures.

[2] The Q1 2022 CES results showed that 18.5 percent of Filipino households considered Q1 2022 as a favorable time to buy a house and lot. This was an increase from the 15.6 percent registered in Q1 2021.

[3] The average appraised value per sqm is computed as the simple average of all reported appraised values of properties based on RRELs granted for the reference period. As such, the national average will be affected by the number of low or large values in an area. Case in point, in Q1 2022, RREL transactions in the AONCR (4,113) were more than double in number than those in the NCR (1,835). However, these AONCR transactions had values that were less than half of those in the NCR. Hence, the national average was pulled down closer to the AONCR average.

[4] Among the residential housing properties purchased using RRELs in Q1 2022, 25.1 percent were pre-owned, while 0.7 percent were foreclosed properties.