Number of Constructions

1. Number of constructions declines

The number of constructions in the first quarter of 2020 reached a total  of 30,838, indicating an annual decline of 22.4 percent.  In the previous quarter, the number of constructions decreased at an annual rate of 7.7 percent and in first quarter of 2019, it increased at 10.4 percent. (Table A)

2. Residential has the highest number of constructions

By type of construction, residential reported the highest number of constructions during the quarter which totaled 20,515 or 66.5 percent of the total number of constructions. This type of construction dropped at a faster rate of 25.5 percent than its annual rate in the previous quarter of 13.3 percent. Majority (89.7%) of the residential constructions  were single-type houses.

Next to residential constructions were non-residential which accounted for 18.7 percent of the total constructions during the quarter. Non-residential constructions also dropped at annual rate of 10.8 percent. Most (66.0 percent) of the non-residential constructions were commercial buildings. (Table A, Table 1, and Figure 1)

Addition and alteration and repair of existing structures had shares of 3.8 percent and 11.0 percent, respectively, to total constructions. Both types of constructions also declined at annual rate of 26.4 percent for addition and 19.0 percent for alteration and repair, which were contrary to their respective annual rates in the same quarter of the previous year. (Table A and Table 1)

3. Number of constructions is highest in CALABARZON

CALABARZON was ranked first with 5,600 constructions or 18.2 percent share to total. Completing the top three regions in terms of number of constructions were Central Visayas with 4,722 constructions (15.3%) and Ilocos Region with 3,048 constructions (9.9%). (Table 2 and Figure 2)

Value of Constructions

1. Total value of constructions shrinks

In the first quarter of 2020, the total value of constructions amounted to PhP 86.1 billion which shrank by 20.1 percent. Compared to previous quarter it declined at an annual rate of 8.8 percent, while it increased at an annual rateof 5.8 percent in the first quarter of 2019. (Table A and Table 1)

2. Non-residential shares more than half of the total value of constructions

Residential building constructions, valued at PhP 36.5 billion, accounted for 42.4 percent of the total value. This shows a contraction of 19.2 percent from the PhP 45.2 billion construction value posted in the same quarter of 2019.

Construction value of non-residential buildings amounted to PhP 44.3 billion or 51.5 percent of the total value. This reflects an 18.5 percent decrease from the PhP 54.3 billion value of construction in the same quarter of the previous year. (Table A, Table 1, and Figure 3b)

The value of construction for addition and alteration and repair to existing structures, accounted for PhP 1.7 billion (1.9%) and Php 3.6 billion (4.2%), respectively, of the total. Both types of constructions had reduction in their respective value with annual rate of 10.8 percent for addition and 42.7 percent for alteration and repair to existing structure.  (Table A and Table 1)

3. Top three regions contribute more than half of the total value of constructions

The combined shares of the top three regions, in terms of value of construction, amounted to PhP 50.0 billion (58.1%). These regions were

1. NCR, PhP 30.4 billion (35.3%)
2. CALABARZON, PhP 11.6 billion (13.5%)
3. Central Visayas, PhP 8.0 billion (9.3%)

(Figure 4)

Floor Area

1. Total floor area constructed declines

The total floor area constructed for this quarter was recorded at 7.9 million square meters. This reflects a slightly faster annual decline of 17.0 percent for the quarter, from 13.4 percent in the previous quarter. On the other hand, it increased at an annual rate of 11.1 percent in the first quarter of 2019. (Table A)

2. Non-residential records more than half of the total floor area constructed

Residential construction accounted for 3.4 million square meters or almost half (43.5%) of the total floor area constructed. It continued to drop at an annual rate of 19.3 percent for this quarter.

On the other hand, non-residential construction recorded 4.3 million square meters or more than half (54.6%) of the total floor area constructed. Non-residential construction decreased at a faster rate of 15.2 percent as compared with the previous quarter’s annual rate of 7.2 percent. (Table 1)

Average Cost per Square Meter

1. Average cost of construction shrinks

The average cost per square meter in the first quarter of 2020 was valued     at PhP 10,891, indicating an annual decline of 3.7 percent. On the contrary, the average cost per square meter in the previous quarter increased at an annual rate of 5.3 percent but in the first quarter of 2019, it contracted by 4.7 percent.   (Table 1)

2. Addition has the highest average cost of constructions

Among types of constructions, addition had the highest average cost per square meter amounting to PhP 11,100.  This was followed by residential (PhP 10,630) and non-residential (PhP 10,259) constructions. (Table 1)

3. Residential condominiums are the most expensive among types of residential construction

Among residential constructions, residential condominiums posted the highest average cost of PhP 12,709 per square meter. The lowest average cost amounting to PhP 9,681 was seen in other types of residential constructions not elsewhere classified. (Figure 5a and Table 1)

4. Institutional-type buildings are the most costly among nonresidential buildings

Institutional-type building constructions reported the highest average cost of PhP 11,290 per square meter.  On the other hand, agricultural-type building constructions continued to register the lowest average cost of PhP 4,599 per square meter.  (Figure 5b and Table 1)

DENNIS S. MAPA, Ph.D.
Undersecretary
National Statistician and Civil Registrar General

TECHNICAL NOTES

Introduction

This Special Release presents the preliminary data on construction statistics from approved building permits for the first quarter of 2020. Data are presented in monthly and quarterly statistical tables at the regional and provincial level by type of construction

Scope and Coverage

Construction statistics presented in this special release are based on 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 PSA field personnel from the Offices of Local Building Officials (LBOs).

Limitations of data

1. Data on building constructions are based from 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 2020, 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

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, 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 the approved building permit and represents the estimated value of the building or structure when completed.