Metro Manila home prices fell by ten percent in the first quarter, according to research from Bangko Sentral ng Pilipinas (BSP). The lingering effects of the COVID-19 pandemic continue to drag down condominium prices in the National Capital Region which declined 12.8 percent from the same period last year.
The bank’s Residential Real Estate Price Index noted that this was the third straight quarter where Metro Manila home prices fell with the condominium sector responsible for most of the decline. Housing prices in all other sectors have risen across the board over the last six months.
“(The home price decline) was due to the decrease in the prices of condominium units, which outweighed the increase in the prices of duplexes, single detached/attached houses, and townhouses. This was the third consecutive quarter that condominium prices declined, owing to the lackluster demand for condominiums in NCR,” the BSP reported.
Property outside of Metro Manila continues to perform much better with home prices elsewhere in the Philippines rising by almost one percent. This was the seventh consecutive quarter of growth, although the housing and duplex sectors both recorded price declines.
Related: 4 of the most unique condominium developments in the Philippines
Metro Manila home prices remain steady in the aftermath of COVID-19
All things considered, it’s probably a bit unfair to compare Metro Manila home prices in the first quarter of 2021 to those in the same period of 2020. That’s because most of the latter came before COVID-19.
When you look at Metro Manila home prices over the past two quarters, the market seems to have stabilized and is primed for growth once the situation improves. For starters, condo prices in the National Capital Region rose by 1.7 percent quarter-on-quarter.
And while Metro Manila home prices were down 10 percent year-on-year, the quarterly decline of 0.8 percent is far less daunting.