{"id":27584,"date":"2016-09-28T14:01:16","date_gmt":"2016-09-28T07:01:16","guid":{"rendered":"http:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-risk-of-crisis-despite-surge-in-philippine-property-loans\/"},"modified":"2016-09-28T14:27:38","modified_gmt":"2016-09-28T07:27:38","slug":"no-risk-of-crisis-despite-surge-in-philippine-property-loans","status":"publish","type":"post","link":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/no-risk-of-crisis-despite-surge-in-philippine-property-loans\/","title":{"rendered":"No risk of crisis despite surge in Philippine property loans"},"content":{"rendered":"<p>&#013;<br \/>\n75 percent of H1 property loans went to developers and contractors<br \/>\nqvist\/Shutterstock<br \/>\nReal estate loans released by financial institutions in the Philippines reached PHP1.138 trillion (USD23.6 billion) in the first six months of this year, an almost 20 percent jump from the same period last year, data released Friday by the Bangko Sentral ng Pilipinas (BSP) showed. Despite the surge in lending, however, analysts are not worried about a bubble encapsulating the property market.<br \/>\nWhile the increase\u00a0is an \u201cobvious area of concern,\u201d loans to the property sector accounts for only 20 percent of total lending, according to Capital Economics, as cited by The Manila Times. \u201cWe don\u2019t think the Philippines is at imminent risk of a crisis,\u201d the property\u00a0consultancy noted. \u201cRapid credit growth in a fast-growing country like the Philippines is less of a concern than in a country like, for example, Japan where nominal GDP is barely growing.\u201d<br \/>\nIn the central bank report, around PHP279 billion (USD5.8 billion) in loans went to\u00a0residential projects, PHP65 billion (USD1.3 billion) of which were lent\u00a0to low-cost or\u00a0socialised housing projects. On the other hand,\u00a0PHP858.59 billion (USD17.8 billion) consisted of commercial loans.<br \/>\nBanks offered PHP443.08 (USDS9.2 billion) or 75 percent of loans to developers and contractors. About PHP198 billion of these loans have been used on residential units.<br \/>\nMore: Optimism in the Philippines is boosting the region\u2019s business sentiment<br \/>\nBorrowers last year amassed a total of PHP949.88 billion (USD19.7 billion) in loans in H1.<br \/>\nThe total amount of real estate loans verged on the 20 percent cap set by the central bank on real property lending. Property loans made up 19.2 percent of institutions\u2019 total loan portfolio in H1.<br \/>\nProperty values rose 9.2 percent year-on-year in the first quarter of 2016, according to the central bank\u2019s maiden residential real estate property index (RREPI).<br \/>\nRead next: Two Philippine fast-food titans team up to build a shopping mall empire&#013;<br \/>\n&#013;<br \/>\nSource : property-report.com&#013;<br \/>\nRead more&#8230;<a href=\"http:\/\/www.property-report.com\/no-risk-of-crisis-despite-surge-in-philippine-property-loans\/\" target=\"_blank\">No risk of crisis despite surge in Philippine property loans<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#013; 75 percent of H1 property loans went to developers and contractors qvist\/Shutterstock Real estate loans&#46;&#46;&#46;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"false","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"spay_email":"","footnotes":"","jetpack_publicize_message":"","jetpack_is_tweetstorm":false,"jetpack_publicize_feature_enabled":true},"categories":[1],"tags":[],"class_list":["post-27584","post","type-post","status-publish","format-standard","hentry","category-property-news"],"jetpack_featured_media_url":"","jetpack_publicize_connections":[],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/p75ss1-7aU","jetpack-related-posts":[{"id":4065,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/what-unchanged-lending-standards-mean-for-philippine-real-estate\/","url_meta":{"origin":27584,"position":0},"title":"What unchanged lending standards mean for Philippine real estate","date":"February 8, 2016","format":false,"excerpt":"\r Rates for the previous 13 quarters were constantly revised and tightened Image courtesy of GMAnews.tv Lending rates in Philippine banks for the commercial real estate and housing sectors remained unchanged in Q4 2015, reflecting stability in the property industry. Citing a recent survey conducted by the Bangko Sentral ng\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"https:\/\/i1.wp.com\/www.siamlandbank.com\/propertynews\/wp-content\/uploads\/2016\/02\/GMAnewstv.jpg?fit=740%2C490&ssl=1&resize=350%2C200","width":350,"height":200},"classes":[]},{"id":1593,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/car-loans-drive-surge-in-uk-consumer-borrowing\/","url_meta":{"origin":27584,"position":1},"title":"Car loans drive surge in UK consumer borrowing","date":"January 15, 2016","format":false,"excerpt":"\r Personal loans and credit card borrowing jumped in November, says Bank of EnglandA surge in loans for new cars was behind a big increase in lending to households, according to Bank of England figures, which may raise fresh fears that families are falling into the trap of debt-fuelled spending.\u2026","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":65106,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/subprime-is-now-nonprime-high-risk-mortgage-lending-is-back\/","url_meta":{"origin":27584,"position":2},"title":"Subprime is now \u2018nonprime\u2019: High-risk mortgage lending is back","date":"August 31, 2017","format":false,"excerpt":"\r Subprime loans were one of the main causes of the financial crisis. But lending to high-risk borrowers are making a comeback, Financial Times reports.\r \r Source : cnbc.com\r Read more...Subprime is now \u2018nonprime\u2019: High-risk mortgage lending is back","rel":"","context":"In &quot;Property News&quot;","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6314,"url":"https:\/\/www.siamlandbank.com\/propertynews\/property-news\/phl-lacks-5-million-affordable-housing-units-and-thats-just-the-beginning\/","url_meta":{"origin":27584,"position":3},"title":"PHL lacks 5 million affordable housing units \u2013 and that\u2019s just the beginning","date":"February 29, 2016","format":false,"excerpt":"\r While developers focus on the luxury residential market, the need for affordable housing in the Philippines grows ever more pressing Affordable housing is major concern for the Philippines. 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