Fitch welcomes PH property price index

ABS-CBN News

Posted at Jun 08 2016 06:28 PM

MANILA - Fitch Ratings welcomes the Philippines' first nationwide residential real-estate price index, which was launched by the Bangko Sentral ng Pilipinas (BSP) on Monday.

The debt watcher said the index will enhance information available for policy making, improve transparency, and help banks monitor risks related to real estate loans.

Data released showed brisk but not excessive property price growth, suggesting that robust real-estate activity over the last few years has not led to significant overheating in the property market.

Fitch said based on the index, the country's property prices showed brisk but not excessive growth, a sign the sector is still healthy.

"Notably too, the increases in the price index- though a limited dataset thus far - do not appear untenable alongside continued strong economic growth," Fitch said.

It added that rated banks in the Philippines have adequate risk controls and lending standards in place to better manage risks related to real estate loans.

Since 2010, loans for real-estate purposes, which make up 19 percent of total loans, rose an average of 22 percent per year until 2013.