Property prices slow in Q4

The growth in property prices has been sustained for 10 straight quarters, albeit at a slower pace in the fourth quarter last year, according to the Bangko Sentral ng Pilipinas (BSP).

- KEISHA TA-ASAN

The central bank’s Residential Real Estate Price Index (RREPI) booked a 6.5- percent increase to 161.7 in the fourth quarter from 151.9 in the same quarter in 2022.

The latest growth rate was slower than the 12.9 percent expansion recorded in the third quarter of 2023. 

On a quarterly basis, the index contracted by 3.6 percent in the fourth quarter from the RREPI of 167.7 in the third quarter. This was a turnaround from the 3.4 percent growth seen a quarter ago.

The RREPI, launched in the first quarter of 2016, is used as an indicator for assessing the real estate and credit market conditions in the country.

“Higher borrowing costs showed their impact on the sector and on capital formation as a whole,” ING Bank senior economist Nicholas Mapa said.