Number of approved building permits slip by 1.6 percent

1. The total number of approved building permits nationwide reached 23,499 during the first quarter of 2007, representing a slight decrease of 1.6 percent compared with 23,877 applications recorded during the same period of 2006.

2. Residential building constructions went down by 4.9 percent to 15,899 from 16,717 during the same period of 2006. Likewise, combined approved building permits for additions, alterations and repairs also dropped by 3.4 percent to 4,057 from 4,199 during the first quarter of 2006.

3. On the other hand, non-residential building constructions rose by 19.7 percent to 3,543 from 2,961 applications during the same period of 2006. Figure 1 compares the number of approved building permits by type of building for the first quarters of 2007 and 2006 (Table A).

   

4. Among the regions, National Capital Region (NCR) recorded the highest number of approved building permit for the first quarter of 2007 with a total of 6,367 applications or 27.1 percent of the total. The recorded number of approved building permits is higher by 68.2 percent compared with 3,786 applications reported during the first quarter of 2006.

5. Moreover, six provinces recorded approved building permits exceeding a thousand mark. These provinces are NCR-2nd District (2,676), NCR-4th District (2,345), Bulacan (1,231), Cavite (1,976), Cebu (1,408) and Davao del Sur (1,107). Figure 2 displays the regional distribution of approved building permit applications for the first quarter of 2007.

   

   Aggregate value of construction surges by 92.7 percent

6. Total value of construction during the first quarter of 2007 amounted to P47.7 billion or an increase of 91.3 percent from P24.9 billion registered during the same period of 2006.

7. Residential building construction was valued at P14.6 billion, higher by 12.1 percent from P13.1 billion recorded during the same period of 2006.

8. On the other hand, non-residential building construction soared by 187.7 percent to P29.3 billion from P10.2 billion registered during the same period of 2006.

9. Likewise, combined value for additions, alterations and repairs jumped by 121.7 percent to P3.8 billion from P1.7 billion recorded during the first quarter of 2006. Figure 3 compares the aggregate value of construction by type of building for the first quarters of 2006 and 2007.

   

10. Regionwise, value of construction in NCR remained highest at P30.8 billion, accounting for 64.5 percent share of the total. Calabarzon and Central Luzon occupied the second and third spot with shares of 8.7 percent (P4.2 billion) and 6.1 percent (P2.9 billion), respectively.

    Average cost per square meter of residential building construction is P6,834

11. Residential building construction was valued at P14.6 billion with a total floor area of 2.1 million square meters, or an average cost of P6,834 per square meter. This figure represents an increase of 9.7 percent compared with the average cost per square meter of P6,228 during the same quarter of 2006.

12. Single type residential units topped all kinds of residential building constructions. This type of construction recorded a total of 12,915 approved building permits (81.2%) with a total floor area of 1.6 million square meters and an aggregate value of P10.6 billion or an average cost per square meter of P6,650.

13. Approved building permits for apartment/accessoria ranked a far second with 2,045 applications (12.9%), total floor area of 281.1 thousand and an estimated value of P1.5 billion.

14. The least number of approved building permit for residential type was reported for residential condominium with 14 applications (0.1%). This type of residential unit recorded a total floor area of 97.1 thousand valued at P1.3 billion. Figure 4 shows the comparison of number and value by type of residential building construction during the first quarter of 2007.

    

    Average cost per square meter of non-residential building construction is P10,660

15. Total value for non-residential building construction was estimated at P29.3 billion with a total floor area of 2.7 million square meters. This is translated to an average cost of P10,660 per square meter or 43.0 percent higher compared with the average cost of P7,454 per square meter registered during the same period in 2006.

16. Commercial type of building constitute more than half or 68.4 percent of total approved building permits for non-residential construction, covering a total floor area of 1.8 million square meters and estimated at P14.4 billion.

17. This was followed by institutional buildings (440 approved building permits or 12.4%), industrial (300 approved building permits or 8.5%), agricultural (82 approved building permits or 2.3%) and other non-residential type (298 approved building permits or 8.4%). Figure 5 shows the number and value by type of non-residential building construction during the first quarter of 2007.

    

EXPLANATORY NOTES

Scope and Coverage

Private construction statistics from approved building permits relate to data on new constructions and additions, alterations and repairs of existing residential and non-residential buildings and other structures undertaken in all regions/provinces of the country.

For this publication, data for the provinces of Cagayan, Northern Samar and Eastern Samar, Zamboanga del Norte, Misamis Occidental, North Cotabato, Sultan Kudarat and Surigao del Sur are not included in the tabulation as the documents were not received during the deadline. However, these are to be included in the annual tabulation.

Source of Information

Data are taken from the original application forms of approved building permits collected by NSO field personnel from Local Building Officials nationwide.
 

Limitations:

1. Data on private building constructions refer to those proposed to be constructed or construction work started during the reference period and not to construction work completed during the reference period.

2. The completeness of the number of building permits collected relies on the applications filed and approved by the Offices of Local Building Officials (LBOs). Hence, private building constructions without approved building permits are not included in the tabulation of data.

Definition of Terms:

Building Permit - A written authorization granted by the Local Building Official (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 - Any independent, freestanding structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend the foundation to the roof.

Residential Building - 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, an apartment and/or accessoria and residential condominium.

Single House - A complete structure intended for a single family.

Duplex - 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 - A structure, usually of two storeys, made up of independent living quarters, with independent entrances from internal walls and courts.

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

Residential Condominium - A structure, usually of several storeys, consisting of multiple dwelling units.

Other residential constructions - Consist of school or company staff houses, living quarters for drivers and maids and guardhouses.

Non-Residential Building - This type includes commercial, industrial, agricultural and institutional buildings.

Additions/Alterations and Repairs - Construction works by which the utility of building or structure is raised or at least renewed or which materially extends the normal life of the building or structure.

Demolitions - The systematic dismantling or destruction of a building/structure or in part.

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

Floor Area of Building - 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 multi-dwellings. Areas of balconies are excluded.

Total Value of Construction - The sum of the cost of building, electrical, mechanical, plumbing and others. The value is derived from the approved building permit and represents the estimated value of the building or structure when completed.

Unpublished Data:

Unpublished data at the municipal level may also be made available upon request from the Industry Statistics Division, National Statistics Office, 4th Floor Solicarel II, Ramon Magsaysay Blvd. Sta. Mesa, Manila, and Tel no. 716-39-32. 

Source:    National Statistics Office
               Manila, Philippines