Property prices dropped for the first time in five years in the third quarter as prices of condominium units and duplex houses plunged amid weaker demand for residential real estate, according to the Bangko Sentral ng Pilipinas.
The residential real estate price index slipped 0.4 percent to 131.2 in the third quarter from 131.7 in the same quarter last year, reflecting low demand as the country plunged into recession due to the COVID-19 pandemic.
The BSP said, “This is the first time that the RREPI posted negative year-on-year growth since the start of the series in Q1 2016.”
The RREPI is used as an indicator for assessing the real estate and credit market conditions in the country. Quarter-on-quarter, data showed the RREPI plunged 14.1 percent after surging 27.1 percent to hit a record 149.4 in the second quarter.
The central bank said, “The decline in the RREPI may be partly due to the weak consumer demand for houses and lots.”