REAL estate loans (RRELs) granted by local banks posted a double-digit decline in the third quarter of the year, according to the Bangko Sentral ng Pilipinas (BSP). The latest BSP data showed real estate loans granted by banks for new housing units contracted by 15.7 percent year-on-year.
Residential and commercial buildings line a road in Vertis North, a 46-hectare mixed-use estate developed by Ayala Land Inc. in a joint venture with the National Housing Authority.
“Notably, the double-digit y-o-y contraction in RRELs in the Philippines, NCR, and AONCR in Q3 2024 was significant, yet not as severe as the decline in housing loan availment observed during the pandemic, which began in Q2 2020,” the BSP said. The data also showed the RRELs for new single-detached/attached houses in the Philippines contracted by 24.5 percent year on year. Loans in NCR for these housing units declined 41.2 percent while those in AONCR contracted 23.7 percent.
The BSP also said the number of RRELs granted for new condominium units in the Philippines also fell by 13.2 percent y-o-y in the third quarter of 2024. The average appraised value per sqm in the NCR decreased by 13.7 percent year on year and 3.6 percent quarter on quarter to P135,076 per sqm.
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