Number of Approved building permit applications grows by 23.2 percent

1. Total number of approved building permit applications nationwide reached 25,546 during the fourth quarter of 2008. This represents a growth of 23.2 percent from the 20,737 applications received during the same period of 2007. 
    

2. Residential building construction with 19,859 approved building permits jumped by 37.5 percent from 14,441 approved building permits during the same quarter of 2007. Non-residential building constructions, on the other hand, slid by 1.4 percent to 2,420 from 2,454 recorded during the same quarter of 2007. 
    

3. Combined approved building permits for additions, alterations and repairs also went down by 15.0 percent to 3,267 from 3,842 approved building permits recorded during the same quarter of 2007.Figure 1 compares the number of approved building permits by type of building for the fourth quarters of 2008 and 2007. 
    

    
    

4. Among the regions, CALABARZON (Region IVA) recorded the highest number of approved building permits with 9,174 applications or 35.9 percent of the total. National Capital Region (NCR), with 2,680 applications or 10.5 percent of the total followed next. 
    

5. Four provinces that registered approved building permits exceeding a thousand marks were: Cavite (5,893), Rizal (1,301), Cebu (1,384), and Davao del Sur (1,207).Figure 2 shows the regional distribution of approved building permit applications. 
    

   
    

   Value of construction increases by 24.8 percent 
    

6. Total value of construction during the fourth quarter of 2008 reached PhP32.8 billion. This is higher by 24.8 percent from PhP26.3 billion recorded during the same quarter of 2007. 
    

7. Value of construction for residential building construction, with PhP19.0 billion, recorded a remarkable increase of 53.3 percent from PhP12.4 billion during the same period of 2007. 
    

8. On the other hand, value of non-residential building construction went down by 5.9 percent from PhP11.0 billion to PhP10.4 billion recorded during the same quarter of 2007. 
    

9. Moreover, combined value for additions, alterations and repairs, estimated at PhP3.4 billion, rose by 18.8 percent from PhP2.9 billion registered during the same quarter of 2007.Figure 3 compares the aggregate value of construction by type of building for the fourth quarters of 2007 and 2008. 
    

   

    

10. Value of construction for the National Capital Region (NCR) consistently remained highest at PhP12.8 billion among the regions, accounting for 38.9 percent share of the total value. CALABARZON (Region IVA), and Central Luzon (Region III) ranked a far second and third with shares of 17.8 percent (PhP5.8 billion) and 9.7 percent (PhP3.2 billion), respectively. 
     

    Average cost per square meter of residential building construction is PhP8,076 
     

11. Aggregate value of construction for residential buildings during the fourth quarter of 2008 amounted to PhP19.0 billion with a total floor area of 2.4 million square meters. This is equivalent to an average cost of PhP8,076 per square meter. 
     

12. The most number of residential building constructions was recorded for single type residential units with 14,173 approved building permits or 71.4 percent of the total. Total value of construction for this type reached PhP10.2 billion covering a total floor area of 1.5 million square meters translating to an average cost of PhP6,721 per square meter. 
     

13. Apartment/accessoria placed second with 5,397 approved permits representing 27.2 percent of total residential construction. This type of residential building construction had an estimated construction value of PhP2.1 billion with a total floor area of 323 thousand square meters or an average cost of PhP6,467 per square meter.Figure 4 displays the number and value of residential building construction by type for the fourth quarter of 2008. 
     

    

     

    Average cost per square meter of non-residential building construction is PhP7,244 
     

14. Value for non-residential building construction was P10.4 billion pesos during the fourth quarter of 2008 with a total floor area of 1.4 million square meters, translating to an average cost of P7,244 per square meter. 
     

15. Commercial type topped the non-residential building construction with 1,447 approved building permits (59.8%). This type of non-residential building construction was valued at PhP6.7 billion with a total floor area of almost 1.0 million square meters or an average cost of PhP7,457 per square meter. 
     

16. Institutional building construction ranked second with 355 approved building permits (14.7 %) with construction value of PhP1.9 billion covering a total floor area of 250.6 thousand square meters or an average cost of PhP7,679 per square meter. 
     

17. The least number of non-residential building construction was recorded for the agricultural type with 76 or 3.1 percent of the total, and valued at PhP0.2 billion. The total floor area for this type was 62.4 thousand square meters, translating to an average cost of PhP2,818 per square meter.Figure 5 shows the number and value of non-residential building construction by type for the fourth quarter of 2008.

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 Batanes, Basilan (except Isabela City) 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