Array
Real Estate

9.2% of Filipino Households Plan to Buy a House in the Next 12 Months

The figures are relatively steady despite a sharp drop in consumer confidence in 3Q of 2018

Shares
Photography: Unsplash

Around 9.2 percent of Filipino households say that they intend to purchase a residential unit in the next 12 months, according to the latest Consumer Expectations Survey by the Bangko Sentral ng Pilipinas (BSP) covering the third quarter of 2018. That’s only slightly less than the 9.3 percent figure in the previous quarter, as well as the 9.8 percent figure a year ago.

 

Surprisingly, the figure has held up rather well amid the steep decline in consumer confidence. The BSP’s overall consumer confidence index, a measure of Filipinos’ sentiment on how their households are faring financially and economically, fell to -7.1 in the third quarter of 2018 from 3.8 in the previous quarter. That’s the lowest the index has dropped since the fourth quarter of 2015, when it stood at -8.1.

The pessimistic turn in consumer sentiment is also evident in the respondents’ answer when asked if they consider the current quarter a good time to buy real estate. Only 33.2 percent of respondents said they do, as opposed to 39 percent in the previous quarter and 37.5 percent a year ago. Other big-ticket items also saw similar declines.

ADVERTISEMENT - CONTINUE READING BELOW

“Respondents cited prioritization on food and other basic needs, high prices and low or insufficient income as reasons for their less favorable outlook on buying conditions,” wrote the BSP in the report. Yet, Filipino households’ plans to buy a house a year from now seems to be unaffected by current pessimism, which is being largely driven by rising inflation, which soared to a nine-year high in August.

Similarly, overseas Filipino workers (OFW)’s families’ house-buying behavior also seem to be unaffected by prevailing consumer pessimism. The BSP survey found that 11.8 percent of OFW households intend to use part of remittances in purchasing a house, much higher than 8.7 percent in the previous quarter. But it is lower than the 14.5 percent figure in the third quarter of 2017. For the third quarter’s Consumer Expectations Survey, the BSP received responses from over 5,400 households across the country. Of these, 449 households said that they receive OFW remittances.

 

*****

 

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

 

This story originally appeared on Entrepreneur.com.ph.

* Minor edits have been made by the Realliving.com.ph editors.

More on Realliving.com.ph

Shares

Latest Stories

This Japanese Ritual Will Change How You Clean the Home

Start with a clean slate literally and figuratively

These Fun Walking Tours Will Take You Back to 1920s Manila

Better sign up ASAP!

A Modern Tropical Family Home in Quezon City

To renovate the house, interior designer Jasmine Ancheta worked with murals, captivating lighting pieces, and refreshing wallpaper

What You Need to Know About The Malabrigo Lighthouse, The Philippines' Oldest Working Lighthouse

Located in Lobo, Batangas, it serves as a guide for ships going to Batangas Bay or Sibuyan Sea through the Verde Island Passage

Start The Year Right With These Decluttering Tips

Achieve a cleaner and brighter home with these handy hints

Sagada's Newest Art Hub Is a Sanctuary in the Mountains

It is called the Dogo Siwang Art Hub

You'll Feel Right at Home in This Hotel in Pasig City

We're definitely going back!

Welcome Prosperity and Positive Vibes Into Your Home with Feng Shui

Improve the positive energy in your home with these friendly reminders

Kids Can Enter Ayala Museum For Free This Weekend

Don't miss out on this!

Turn Your Bedroom Into A Comforting Space with These Colors

Sweet, calming, and neutral colors are our top picks!

Your Ultimate Guide on Choosing The Right Kitchen Tools

Shopping for appliances is really about making the right decisions

7 Beautiful & Peaceful Staycation Spots in Tagaytay

From cozy B&Bs to luxurious hotels, we give you a roundup of some of the best places to stay in for your next trip to this vibrant city
Load More Stories

Get inspiring design ideas and handy hints.
Subscribe to our newsletter now!