A Look at Property Prices in the Philippines in 2023
The rise in the Residential Real Estate Price Index (RREPI) was driven by stronger demand for certain types of real estate. We look into why it happened and what it’ll mean for 2023.
Data from the Bangko Sentral ng Pilipinas (BSP) shows that housing prices in the country have grown at a faster rate during the last quarter of 2022. In fact, the Residential Real Estate Price Index (RREPI) rose 7.7% year on year during that time period.
What’s more, the growth that was experienced during the fourth quarter is faster than that of the third quarter, which was recorded at 6.5%. It is likewise faster than the 4.9% growth recorded during the last quarter of 2021.
What Drove the Faster Growth in Housing Prices?
According to the BSP, the faster growth in the last quarter of 2022 was driven by the stronger demand for duplex housing units and condominium units. The fourth quarter likewise saw higher prices for duplex housing units, condominium units, and single-detached or attached houses.
Prices of duplexes, for example, rose by 42.9% during the aforementioned time period, while prices of condominium units went up by 12.9%. As for single-detached or attached houses, prices rose by 10% during the same period.
In contrast, prices of townhouses went down by 6.8% during the last quarter of 2022. The BusinessWorld’s report notes that this marked the second successive quarter that prices of townhouses have declined.
Real Estate Outlook for 2023
If anything, the strong numbers for housing properties in 2022 are seen to continue in 2023. In fact, Colliers projects the delivery of new condominium units, in particular, to reach 5,600 units for the year. Colliers adds that two-thirds of these units will be in the Bay Area.
“By the end of 2024, condominium stock in major business districts in Metro Manila is expected to reach 166,400 units—a 17% increase from 142,200 units in 2021—with the Bay Area likely overtaking Fort Bonifacio as the biggest condominium market in the National Capital Region,” it adds.
Given these numbers, real estate developers are encouraged by Colliers to focus on key features that buyers look for when making their respective purchases. These include sustainable and green features, open spaces, and environmentally-friendly amenities, among others.