Construction Statistics from Approved Building Permits First Quarter 2021

Reference Number: 2021-222
Release Date: 08 June 2021

TABLE A.  Summary of Construction Statistics from Approved Building Permits, Philippines

First Quarter 2021p, Fourth Quarter 2020r and First Quarter 2020r
Type of Construction First Quarter 2021p Fourth Quarter 2020r First Quarter 2020r
Level
Annual
Growth
Rate
(percent)
Level
Annual
Growth
Rate
(percent)
Level
Annual
Growth
Rate
(percent)
Total            
Number 33,627 1.4 34,797 -11.3 33,173 -23.0
Floor Area (sq.m.) 6,435,236 -23.0 6,305,253 -34.1 8,361,034 -17.5
Value (PhP '000) 80,018,928 -12.1 70,407,320 -40.3 91,043,915 -20.4
Residential            
Number 23,364 6.2 24,756 -9.5 21,992 -27.2
Floor Area (sq.m.) 3,810,836 4.2 3,386,525 -26.9 3,656,803 -19.1
Value (PhP '000) 46,217,089 19.3 35,580,302 -35.3 38,753,672 -19.4
Non-residential            
Number 5,297 -13.5 5,076 -23.3 6,126 -11.2
Floor Area (sq.m.) 2,483,295 -45.4 2,865,182 -40.2 4,547,761 -16.4
Value (PhP '000) 29,082,088 -37.7 28,404,240 -48.9 46,645,575 -19.2
Addition            
Number 872 -30.4 508 -63.0 1,253 -21.9
Floor Area (sq.m.) 141,105 -9.8 53,546 -63.7 156,470 -12.8
Value (PhP '000) 1,424,737 -19.7 437,276 -66.8 1,773,754 -9.5
Alteration and Repair            
Number 4,094 7.7 4,457 14.6 3,802 -13.6
Value (PhP '000) 3,295,013 -14.9 5,985,502 -1.6 3,870,914 -41.7

p – preliminary;  r – revised
Note: Details of floor area and value may not add up to their respective totals due to rounding.
Source: Philippine Statistics Authority

Number of Constructions

  1. Number of constructions increased

The number of constructions in the first quarter of 2021 recorded a total of 33,627, indicating an annual expansion of 1.4 percent. This increase was in contrast with the previous quarter’s annual drop of -11.3 percent. In the first quarter of 2020, the number of constructions decreased by -23.0 percent annually. (Table A)

  1. Residential had the highest number of constructions

By type of construction, residential reported the highest number of constructions during the quarter at 23,364 or 69.5 percent of the total number of constructions. This type of construction increased at an annual rate of 6.2 percent which was contradictory to the annual decline of -27.2 percent in the same quarter of the previous year. Majority (89.4%) of the total residential constructions were single-type houses. (Tables A and 1, and Figure 1a)

Non-residential constructions, which accounted for 15.8 percent of the total constructions during the quarter, ranked second. It decreased at an annual rate of -13.5 percent relative to its count in the same period of the previous year. About 67.4 percent of the non-residential constructions were commercial buildings. (Tables A and 1, and Figure 1b)

Figure 1

Addition, which refers to any new construction that increases the height or area of an existing building/structure, and alteration and repair of existing structures had shares of 2.6 percent and 12.2 percent, respectively, to the total number of constructions. Compared with their respective annual rates in the same quarter of the previous year, addition-type of construction dropped at a rate of -30.4 percent while alteration and repair increased at a rate of 7.7 percent. (Tables A and 1)

  1. Number of constructions was highest in CALABARZON

CALABARZON remained to have the highest number of constructions with 7,288 constructions or 21.7 percent share to the total during the quarter. Completing the top three regions were Ilocos Region with 4,015 constructions (11.9%) and Central Luzon with 3,722 constructions (11.1%). (Table 2 and Figure 2)

Figure 2

Value of Constructions

  1. Total value of constructions declined

In the first quarter of 2021, the total value of constructions was PhP 80.0 billion, which represents an annual decline of -12.1 percent. The value of constructions also dropped at an annual rate of -40.3 percent in the previous quarter and -20.4 percent in the first quarter of 2020. (Tables A and 1)

  1. Residential recorded the highest value of constructions

Residential building constructions, valued at PhP 46.2 billion, accounted for 57.8 percent of the total value of constructions in the first quarter of 2021. This construction value expanded by 19.3 percent from the PhP 38.8 billion total construction value in the same quarter of 2020. (Tables A and 1, and Figure 3a)

Value of non-residential constructions, which amounted to PhP 29.1 billion, accounted for 36.3 percent of the total value during the quarter. This translates to a -37.7 percent downturn from the PhP 46.6 billion value of construction in the same quarter of the previous year. (Tables A and 1, and Figure 3b)

Figure 3

For this quarter, the value of construction for addition, and alteration and repair to existing structures amounted to PhP 1.4 billion (1.8%) and PhP 3.3 billion (4.1%), respectively. Both types of constructions declined at an annual rate of -19.7 percent for addition and -14.9 percent for alteration and repair of existing structure. (Tables A and 1)

  1. Top three regions contributed more than half to the total value of constructions

The combined shares of the top three regions, in terms of value of constructions, totaled to PhP 49.7 billion or 62.2 percent of the total. These regions were:

  1. NCR, PhP 27.4 billion (34.2%)
  2. CALABARZON, PhP 14.2 billion (17.7%)
  3. Central Luzon, PhP 8.2 billion (10.2%).

(Figure 4)

Figure 4

Floor Area

  1. Total floor area of constructions dropped

The total floor area of constructions for this quarter was posted at 6.4 million square meters, indicating an annual decline of -23.0 percent. This decline was slower than the previous quarter’s annual decrease of -34.1 percent. In the first quarter of 2020, the total floor area likewise decreased by -17.5 percent. (Table A)

  1. Residential accounted for more than half of the total floor area of constructions

Residential constructions recorded 3.8 million square meters or 59.2 percent of the total floor area of constructions this quarter. It increased at an annual rate of 4.2 percent compared to the previous year’s same quarter annual decline of -19.1 percent.

Similarly, non-residential construction, which accounted for 2.5 million square meters or 36.6 percent of the total floor area of constructions, exhibited a faster annual decrease of -45.4 percent from the previous year’s same quarter annual drop of -16.4 percent. (Table 1)

Average Cost per Square Meter

  1. Average cost of construction expanded

The average cost of construction, excluding those for alteration and repair, was PhP 11,908 per square meter in the first quarter of 2021. This represents an annual increase of 14.3 percent. On the contrary, average cost of construction recorded annual decreases of -12.5 percent in the previous quarter and -1.8 percent in the first quarter of 2020. (Table 1)

  1. Residential had the highest average cost of constructions

Among types of constructions, residential had the highest average cost of PhP 12,128 per square meter during the quarter. This was followed by non-residential with PhP 11,711 per square meter, and addition to existing constructions with PhP 10,097 per square meter. (Table 1)

  1. Residential condominium construction was the most expensive among types of residential construction

Among residential constructions, condominiums had the highest average cost of PhP 20,258 per square meter during the quarter while single type residential recorded the lowest at PhP 10,172 per square meter. ( Table 1 and Figure 5a)

  1. Institutional-type buildings were the costliest among non-residential buildings

For this quarter, institutional-type building constructions reported the highest average cost of PhP 15,234 per square meter among types of non-residential buildings. On the contrary, agricultural-type building constructions continued to register the lowest average construction cost of PhP 4,790 per square meter. (Table 1 and Figure 5b)

Figure 5

 

 

 

 

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary data on construction statistics from approved building permits for the first quarter of 2021. Data are presented at the regional and provincial levels with monthly disaggregation.

Scope and Coverage

Construction statistics presented in this special release are based on the approved building permits on new constructions and additions, alterations and repairs of existing residential and non-residential buildings, and other structures which are proposed to be constructed in the different cities/municipalities of the country.

Sources of Information

Construction statistics are generated from approved building permits as well as from the demolition and fencing permits collected every month by the Philippine Statistics Authority (PSA) field personnel from the Offices of Local Building Officials (LBOs).

Limitations of data

  1. Data on building constructions are based on approved applications for construction during the reference period and not on the construction work completed during the reference period.
  2. The completeness of construction data relies on the approved applications filed with the LBOs. Hence, building constructions without approved building permits are not part of the tabulation of data.

Geographic Classification

For the first quarter of 2021, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2017.

Statistics Generated

Construction statistics generated from approved building permits provide monthly data on building construction at the regional and provincial level. The statistics generated are the following:

  1. number
  2. floor area
  3. type of construction
  4. value of construction

Aside from the preliminary tables posted in the PSA website, the annual, quarterly, and monthly statistical tables at the municipality level by type of construction are available at the Industry Statistics Division (ISD) of the Economic Sector Statistics Service (ESSS) of the PSA. They can be requested through email at nonmfg.staff@psa.gov.ph.

Dissemination

Preliminary results of construction statistics are made public in the form of Quarterly Special Releases. The Quarterly Special Releases are reports containing the preliminary results of construction statistics submitted within the cut-off dates for each month. Results are posted 65 days after the reference quarter in the PSA website (www.psa.gov.ph).

Revision

All documents received after the cut-off date, which is 40 days after the reference quarter, are included in the generation of the revised results. The revised data of the previous quarter are reported during the release of the preliminary report of the current quarter. Revisions are made for the previous quarters until the annual report is released seven months after the reference year.

Definition of Terms (Adopted from the Revised and Updated IRR of the National Building Code)

Building permit is a written authorization granted by the LBO to an applicant allowing him to proceed with the construction of a specific project after plans, specifications, and other pertinent documents have been found to be in conformity with the National Building Code (PD 1096).

Building refers to any independent, free-standing structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend from the foundation to the roof.

Construction refers to all on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities, machineries, and equipment of buildings/structures.

Residential building is a building for which its major parts or more than half of its gross floor area is built for dwelling purposes. This type of building can be of the single type, duplex, apartment and/or accessoria,and residential condominium.

Single house is a complete structure intended for a single family or household, i.e., bungalow, 2-storey house, nipa hut, etc.

Duplex house is a structure intended for two households, with complete living facilities for each; it is a single structure divided into two dwelling units by a wall extending from the floor to the ceiling.

Apartment is a structure, usually of two storeys, made up of independent living quarters, with independent entrances from internal walls and courts.

Accesoria is a one or two-floor structure divided into several dwelling units, each dwelling unit having its own separate entrance from the outside.

Residential condominium is a structure, usually of several storeys, consisting of multiple dwelling units.

Other residential construction consists of school or company staff houses, living quarters for drivers and maids, and guardhouses.

Non-residential building includes commercial, industrial, agricultural, and institutional buildings.

Commercial buildings refer to office buildings and all buildings which are intended for use primarily in wholesale, retail and service trades; i.e., stores, hotels, restaurants, banks, disco houses, etc.

Industrial buildings are buildings used to house the production, assembly, and warehousing activities of industrial establishments; i.e., factories, plants, mills, repair shops, machine shops, printing press, storage plant, electric generating plants.

Institutional buildings are buildings which primarily engaged in providing educational instructions and hospital/health care; ports, airports and other government buildings; i.e., school, museums, libraries, sanitaria, churches, and hospitals.

Agricultural buildings are buildings used to house livestock, plants, and agricultural products such as barn, poultry house, piggeries, stables, greenhouses, and grain mill.

Other non-building constructions include cemetery structures,street furniture, waiting sheds, communication towers, etc.

Addition refers to any new construction which increases the height or area of an existing building/structure.

Repair is a remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

Renovation is any physical change made on structures to increase their value and quality.

Alteration is a construction in a building/structure involving changes in the materials used, partitioning and location/size of openings, structural parts, existing utilities and equipment but does not increase the overall area thereof.

Conversion is a change in the use or occupancy of structure or any portion thereof, which has different requirements.

Demolitions refer to the systematic dismantling or destruction of a building/structure, in whole or in part.

Street furniture are street structures consisting of monuments, waiting sheds, benches, plant boxes, lampposts, electric poles, and telephone poles.

Floor area of building refers to the sum of the area of each floor of the building measured to the outer surface of the outer walls including the area of lobbies, cellars, elevator shafts and all communal spaces in multidwellings. Areas of balconies are excluded.

Total value of construction refers to the sum of the cost of building, electrical, mechanical, plumbing, and others. The value is derived from theapproved building permit and represents the estimated value of the building or structure when completed

 

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