Published December 24, 2020, 6:00 AM
For the first time in the reporting of the Bangko Sentral ng Pilipinas’ (BSP) Residential Real Estate Price Index (RREPI), residential property prices fell in the third quarter by 0.4 percent year-on-year due to weak demand brought on by the COVID-19 pandemic.
On a quarter-on-quarter basis, RREPI declined more significantly or by 14.1 percent. The decline in the prices of condominium pulled both periods’ RREPI.
This is the first time since the RREPI was introduced in 2016 that it had a negative year-on-year growth. “The decline in the RREPI may be partly due to the weak consumer demand for houses and lots,” said the BSP. “This is consistent with the outcome of the third quarter Consumer Expectations Survey, which pointed to the low preference of consumers to buy real estate property amid the pandemic and economic uncertainty.”