MANILA, Philippines (UPDATED) - Residential property prices in the central business district of Makati recorded a 0.19% increase in 2010 supported by strong economic expansion and all-time low interest rates, a property research firm recently reported.
This makes 2010 the Philippines' first year of house price growth after 2 years of decline, Global Property Guide said in a statement.
"During 2010, secondary market prices for 3-bedroom condominiums in Makati rose 0.19%, with a 0.20% rise occurring during Q4 2010, the Philippine-based online property research firm noted.
These are based on inflation-adjusted rates, which "provide a more realistic picture than the more upbeat nominal figures usually preferred by real estate agents," the firm explained.
In 2009, Philippine prices for these properties, when inflation-adjusted, declined by 5.24%.
If based on nominal prices, changes in 2010 showed a 3.12% hike while 2009 experienced a 2.5% decline.
Inflation in 2010 is expected to be around 4.5% while 2009's averaged at 3.2%.
The research house said only 15 countries experienced house price increases in 2010. Citing its latest house price survey on the recovery of the global housing market using available fourth quarter statistics, it noted that, generally, prices have stalled in 2010.
Below are some of geographical trends from its study:
- Prices fell further in the United States in 2010 than the previous year.
- Ireland, Bulgaria, Hungary, Lithuania Greece and Ukraine are also still suffering badly.
- Eastern European housing markets are still falling. House price falls in 2010 were less than the previous year.
- The Scandinavian house price boom may be ending.
- In the Baltics, Latvia and Estonia’s housing markets recovered strongly in 2010. But now they seem to have stopped rising.
- Price rises still continue in some Asian countries (Taiwan, Thailand, Japan), but Singapore’s boom seems to have moderated.