Number of approved building permit applications higher by 19.7 percent

Approved building permit applications nationwide reached 27,282 during the first quarter of 2009, This number posted a growth of 19.7 percent from the 22,787 applications received during the same period of 2008. 
 

Residential building construction, with 19,608 approved building permits, rose by 21.3 percent from 16,159 approved building permits during the same quarter of 2008. Non-residential building constructions also grew to a remarkable 42.6 percent to 4,180 from 2,931 during the same quarter of 2008. 
 

However, combined approved building permits for additions, alterations and repairs with a total of 3,494 went down by 5.5 percent from 3,697 approved building permits recorded during the same quarter of 2008. Figure 1 compares the number of approved building permits by type of building for the first quarters of 2008 and 2009. 
 

Among the regions, CALABARZON (Region IVA) recorded the highest number of approved building permits with 6,472 applications or 23.7 percent of the total. Central Luzon (Region III) with 4,825 applications (17.7%) ranked second, followed by National Capital Region (NCR) with 3,417 applications representing 12.5 percent of the total. 
 

Six (6) provinces that registered approved building permits exceeding a thousand marks were: Pampanga (2,543), Bulacan (1,251), Cavite (2,061), Laguna (2,210), Bohol (1,135), and Cebu (1,745).Figure 2 shows the regional distribution of approved building permit applications 
 

Value of construction contracts by 1.5 percent 
 

• Total value of construction during the first quarter of 2009 estimated at Php29.7 billion declined by 1.5 percent from Php30.1 billion recorded during the same quarter of 2008. 
   

• However, value of residential building construction, amounting to Php17.1 billion, increased by 18.1 percent from Php14.4 billion during the same period of 2008. 
   

• Moreover, combined value for additions, alterations and repairs, estimated at Php2.9 billion, rose by 25.1 percent from Php2.3 billion registered during the same quarter of 2008. 
   

• On the other hand, value of non-residential building construction amounting to Php9.7 billion slid by 27.3 percent from Php13.3 billion recorded during the same quarter of 2008. Figure 3 compares the aggregate value of construction by type of building for the first quarters of 2008 and 2009. 
   

  

   

• Regionwise, value of construction for the National Capital Region (NCR) had always remained highest at Php9.4 billion, accounting for 31.8 percent share of the total value. CALABARZON (Region IVA), and Central Luzon (Region III) ranked a far second and third with shares of 15.9 percent (Php4.7 billion) and 13.1 percent (Php3.9 billion), respectively. 
   

  Average cost per square meter of residential building construction is Php7,509 
   

• Total value of construction for residential buildings reached Php17.1 billion with a total floor area of 2.3 million square meters, translating to an average cost of Php7,509 per square meter. 
   

• Single type residential units with 15,938 approved permits (81.3%) recorded the most number of residential building constructions. Total value of construction for this type reached Php12.4 billion covering a total floor area of 1.7 million square meters translating to an average cost of Php7,250 per square meter. 
   

• Apartment/accessoria followed next with 3,309 approved permits representing 16.9 percent of total residential construction. This type of residential building construction had an estimated construction value of Php2.6 billion with a total floor area of 359 thousand square meters or an average cost of Php7,181 per square meter. Figure 4 displays the number and value of residential building construction by type for the first quarter of 2009. 
   

  

   

  Average cost per square meter of non-residential building construction is Php7,528 
   

• During the first quarter of 2009, value of non-residential building construction was Php9.7 billion pesos with a total floor area of 1.3 million square meters. This translates to an average cost of Php7,528 per square meter. 
   

• Commercial type topped the non-residential building construction with 2,960 approved building permits (70.8%). Value of construction for this type was estimated at Php5.7 billion covering a total floor area of 752.7 thousand square meters or an average cost of Php7,516 per square meter. 
   

• Institutional building construction which ranked a far second had 447 approved building permits (10.7 %), construction value of Php2.5 billion and a total floor area of 278.7 thousand square meters or an average cost of Php8,846 per square meter. 
   

• The least number of non-residential building construction was reported by agricultural type with 135 or 3.2 percent of the total. Construction was estimated at Php0.1 billion covering a total floor area of 42.1 thousand square meters, translating to an average cost of Php2,941 per square meter. Figure 5 shows the number and value of non-residential building construction by type for the first quarter of 2009.

TECHNICAL 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 Tawi-tawi and Sulu are not included in the tabulation as these provinces did not submit building permit documents and certification of no construction before the deadline. However, if any, 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 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 approval of applications filed with the Office of Local Building Officials (LBOs). Hence, private building constructions without approved building permits are excluded in the tabulation of data.

Geographic Classification

Private building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines. It consists of 17 administrative regions as approved under Executive Order No. 36 dated 19 September 2001 (Providing for the Reorganization of the Administrative Regions in Mindanao) and Executive Order No. 103 dated 17 May 2002 (Dividing Region IV into Region IV-A and Region IV-B, transferring the province of Aurora to Region III).

The geographic codes are in accordance with NSCB Resolution No. 3, Series of 2005 that approved the PSGC.

Industry Classification

Private building construction statistics utilizes the amended 1994 Philippine Standard Industrial Classification (PSIC) to classify the main activity through the use or type of occupancy of the building.

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

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 or household, i.e. bungalow, 2-storey house, nipa hut.

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.

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

Agricultural Buildings - All buildings which are used to house livestocks, plants and agricultural products such as barn, poultry house, piggeries, stables, greenhouses and grain mill.

Other Non Buildings Constructions - These include cemetery structures, street furnitures, waiting sheds, communication towers, etc.

Addition - Any new construction which increases the height or area of an existing building/structure.

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

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

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