Philippine property prices rose in the third quarter of 2021 with the Bangko Sentral ng Pilipinas (BSP) Residential Real Estate Price Index increasing by 6.3 percent, ending a two-quarter slide. Growing demand for condos and townhomes played an important role in this turnaround.
The former jumped by 13.6 percent from the same period last year while the latter soared by 37.1 percent. According to the bank, the recovery of Philippine property prices was due to stronger consumer demand for both condos and townhomes in the National Capital Region (NCR)in particular.
Condo prices across the country have been hit hard by the COVID-19 pandemic having decreased in four straight quarters before the recent turnaround. There is hope the recovery in Philippine property prices could lead to bigger and better things in 2022.
Rise in Philippine property prices could be a sign of a market turnaround
Late last year, the Philippines’ central bank predicted a property market recovery in the country this year as part of a larger rebound in overall economic growth. And this seems more likely with Philippine property prices rising in the third quarter of 2021.
“The BSP anticipates that activity in the real estate market will recover in line with rebound in overall economic growth in 2022,” BSP Governor Benjamin Diokno was quoted as saying by Philstar Global. “Real estate demand slipped due to the uncertainties brought about by the global health crisis as capital values for office and residential units in the country’s major commercial and business districts slumped in 2020.”
While the past two years have been a struggle, the BSP did note that the real estate and construction sectors are already on the road to recovery having inched upward during the second quarter of this year.
However, more is required for a complete Philippine property market recovery. A full return to work and tourism resuming are a few of the needed factors.