The creation of a price index that will serve as standard official guide for valuing residential properties in the country is set for release early next year, the Bangko Sentral ng Pilipinas (BSP) said.
BSP Deputy Governor for the Monetary Stability Sector Diwa Guinigundo said that a prototype residential real-estate property index (RREPI) has already been compiled.
The index is currently undergoing a process of evaluation and refinement. It could be released early next year,” Guinigundo said.
The index has earlier been discussed as a central bank initiative to help regulators and real-estate practitioners monitor price movements in the sector and prevent price misalignments in the industry, given that the sector is prone to the formation of price bubbles.
The central bank earlier explained that the RREPI is focused primarily on the residential sector and only covers prices of property in the National Capital Region. There were some difficulties in gathering data from places outside the country’s capital.
The index, a first in the country for the sector, is said to be a reflection of both the supply and demand curve of the industry. In terms of supply, the RREPI is said to factor in the cost of materials, construction and permits.