Number of constructions up by 7.5 percent in fourth quarter

1. Total number of constructions generated from approved building permits in the fourth quarter of 2015 reached 31,638. This number represents an increase of 7.5 percent compared with the 29,443 constructions recorded during the same quarter in 2014.

2. The number of residential buildings rose by 14.7 percent to 24,274 from 21,155 reported during the same period of 2014. Construction of single-type houses (25.4%) and other types of residential constructions (69.6%) were the drivers of growth in residential constructions. On the other hand, construction of duplex/quadruplex (-51.1%), residential condominiums (-34.8%) and apartment/accessoria (-5.6%) exhibited decreases in number.

3. Non-residential constructions numbering to 3,717 went up by 5.6 percent from 3,520 reported during the same period last year. This was brought about by the increases in the construction of commercial buildings (12.6%) and other types of non-residential constructions (143.8%). All other types of non-residential constructions showed decrements in number.

4. Addition to existing structures with 981 projects dropped by 35.8 percent from 1,528 recorded during the same period of 2014. Likewise, alteration and repair of existing structures fell by 17.7 percent to 2,666 from 3,240 projects recorded a year ago. Figure 1 compares the number of constructions by type for the fourth quarters of 2015 and 2014.

5. The top five regions, in terms of number of constructions, comprised 63.1 percent of the total. Region IVA (CALABARZON) remained highest with 8,349 constructions, accounting for more than one-fourth (26.4%) of the total. Region VII (Central Visayas), ranking fifth in the same period last year, occupied the second slot with 3,756 constructions (11.9%). Other regions in the top five are as follows:

• Region III (Central Luzon) with 2,897 constructions (9.2%)
• National Capital Region (NCR) with 2,558 constructions (8.1%)
• Region XI (Davao Region) with 2,418 constructions (7.6%)

Figure 2 shows the distribution of constructions by region.

6. The top ten provinces accounted for 47.2 percent of the total number of constructions. Cavite continued to occupy the top slot with 3,716 constructions (11.7%), followed by Laguna and Bohol with 2,117 (6.7%) and 1,449 (4.6%) constructions, respectively. Completing the top ten provinces with the most number of constructions are as follows:

• Cebu with 1,366 constructions (4.3%)
• Bulacan with 1,313 constructions (4.2%)
• Batangas with 1,173 constructions (3.7%)
• Davao del Sur with 1,003 constructions (3.2%)
• Misamis Oriental with 999 constructions (3.2%)
• Negros Oriental with 902 constructions (2.9%)
• Iloilo with 897 constructions (2.8%) 

7. Number of constructions in Iloilo increased by 84.6 percent, the highest among the top ten provinces. This was brought about by the significant growth in the construction of apartment/accesoria and single-type dwellings in the province.

Total value of construction down by 5.2 percent

8. Total value of constructions amounting to PHP68.6 billion decreased by 5.2 percent from PHP72.4 billion recorded during the fourth quarter of 2014, despite the 7.5 percent increase in the number of constructions. This can be traced to the declines in the construction value of non-residential constructions, addition to existing structures, and alteration and repair of existing structures.

9. Value of residential constructions slightly increased by 1.2 percent to PHP30.0 billion from PHP29.6 billion recorded during the same quarter of 2014. This was influenced by the increases in the construction value of single-type houses (25.1%) and other types of residential constructions (183.2%).

10. On the other hand, value of non-residential constructions amounting to PHP33.9 declined by 6.5 percent from PHP36.2 billion registered during the fourth quarter of 2014. The two-digit decreases in the construction value of commercial buildings (-18.6%), industrial buildings (-10.1%) and other types of non-residential constructions (-63.8%) pulled down the total value of non-residential constructions.

11. Likewise, construction value of addition to existing structures estimated at PHP1.1 billion fell by 13.3 percent from PHP1.3 billion recorded during the same period in 2014. Alteration and repair of existing structures valued at PHP3.6 billion dropped by 31.0 percent compared with PHP5.2 billion posted in 2014. Figure 3 compares the value of constructions by type for the fourth quarters of 2015 and 2014.

12. In terms of value of construction, the share of top five regions comprised 60.1 percent of the total. NCR consistently remained highest with construction value of PHP22.8 billion accounting for about one-third (33.2%) of the total. This was followed by neighboring regions of CALABARZON and Central Luzon with respective construction value of PHP11.1 billion (16.1%) and PHP7.4 billion (10.8%). Central Visayas with construction value of PHP5.4 billion (7.9%) and Davao Region with PHP3.9 billion (5.7%), placed fourth and fifth, respectively.

Average cost of residential-type building is PHP9,337 per square meter

13. Average cost of residential construction for the fourth quarter of 2015 was estimated at PHP9,337 per square meter, higher by 2.1 percent compared with previous year’s average cost of PHP9,145. This was influenced by the two-digit increases in the average cost per square meter of residential condominiums (19.8%) and duplex/quadruplex buildings (15.7%).

14. Among residential constructions, single-type houses recorded the most number of projects with 21,045 accounting for 86.7 percent of the total. Total value of construction for this type amounted to PHP16.8 billion covering a total floor area of 1.9 million square meters or an average cost of PHP8,672 per square meter.

15. Apartment/accessoria-type units distantly followed with 2,188 projects or 9.0 percent of the total residential construction. This type of construction valued at PHP4.1 billion had a total floor area of 579.9 thousand square meters or an average cost of PHP7,150 per square meter.

16. Duplex/quadruplex-type dwellings came next with 972 projects or 4.0 percent of the total residential construction. Construction value for this type amounted to PHP0.7 billion with a total floor area of 91.0 thousand square meters or an average cost of PHP7,325 per square meter.

17. Residential condominiums numbering to only 30 (0.1%) had construction value of PHP8.3 billion and total floor area of 596.4 thousand square meters, translating to an average cost of PHP13,956 per square meter. Figure 4 displays the number and value of residential constructions by type for the fourth quarter of 2015.

Average cost of non-residential construction is PHP10,125 per square meter

18. Average cost per square meter of non-residential constructions dropped by 25.0 percent to PHP10,125 from PHP13,493 recorded during the same quarter in 2014. This was brought about by the declines in the average cost per square meter of industrial (-52.9%) and commercial (-24.2%) buildings.

19. Commercial-type buildings dominated all other types of non-residential constructions with 2,303 projects or 62.0 percent of the total. Construction value for this type amounted to PHP17.2 billion with a total floor area of 1.7 million square meters or an average cost of PHP10,395 per square meter.

20. Institutional-type buildings came next with 753 projects (20.3%), construction value of PHP6.6 billion and total floor area of 535.2 thousand square meters, translating to an average cost of PHP12,278 per square meter. 

21. Industrial-type buildings ranked third with 400 projects (10.8%). Total construction value for this type was estimated at PHP9.3 billion with total floor area of 564.4 thousand square meters or an average cost PHP8,374 per square meter. 

22. Agricultural-type buildings made up of 144 projects or 3.9 percent of the total non-residential construction. Construction value for this type amounted to PHP0.7 billion with total floor area of 139.0 thousand square meters or an average cost of PHP4,834 per square meter. Figure 5 shows the number and value of non-residential constructions by type for the fourth quarter of 2015.

TECHNICAL NOTES

CONSTRUCTION STATISTICS FROM APPROVED BUILDING PERMITS

Introduction

This Special Release presents the preliminary data on construction statistics from approved building permits for the fourth quarter of 2015, generated 60 calendar days after the reference quarter.

For this publication, data for the provinces of Apayao, Isabela City, Lanao Del Sur, Sulu, and Tawi-Tawi are not included in the tabulation as these provinces did not submit any building permit document and/or certification of no approved building permit before the generation of preliminary tables. However, if any, these are to be included in the annual tabulation.

Data are presented at the provincial level by type of construction in Tables 1 to 7.  

Scope and Coverage

Construction statistics from approved building permits relate to administrative-based data on new constructions and additions, alterations and repairs of existing residential and non-residential buildings and other structures proposed to be constructed in all cities and municipalities of the country in a specific period.

Sources of Information

Construction statistics are compiled by the Philippine Statistics Authority from the copies of original application forms of 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) nationwide.

Limitations

1. Data on building constructions refer to those approved applications 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 LBOs. Hence, private building constructions without approved building permits are excluded in the tabulation of data.

Geographic Classification

Building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2014. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines.

Industry Classification

Construction statistics utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to identify the industrial classification of the structure proposed for construction through its use or character of occupancy.

Collection

The number of building permit forms accomplished by the applicant comes in five (5) copies. The “NSO copy” of the approved building permit is made available within the first five (5) working days after each reference month. Collections of these documents from the LBO in city/municipality are undertaken by PSA field personnel within this period.

Collected documents for each month are properly checked as to its completeness by verifying the beginning and ending numbers indicated in the permit numbers. Missing numbers are indicated, with corresponding reasons, in the transmittal. In cases where there is no construction in a given month in a municipality, a certification that there was no approved building permit during the reference period is provided by the LBO to the PSA field staff.

Data Processing

Data processing of approved building permits is done both manually and mechanically. Copies of documents collected from the offices of LBOs are properly controlled, sorted, edited and coded, folioed and encoded in the PSA provincial offices. During machine validation, inconsistent and invalid entries which are flagged in an error listing are corrected in the data file. This process is repeated until there are no more inconsistent or erroneous entries found in the error listing. The data files are then forwarded to PSA Central Office for validation, consolidation and generation of preliminary tables. Data files received after the cut-off dates of submission set for each quarter are included in the generation of annual tables.

Preliminary results are based from data files that have undergone data processing in the provincial offices and have been validated at the Central Office. The preliminary tables are revised to include building permit documents received after the cut-off period in the annual tabulation. 

Statistics Generated

Construction statistics generated from approved building permits provide monthly administrative-based data on building construction at the municipality level nationwide. Statistics generated are the following:

• number
• floor area
• type of construction
• value of construction

Statistical Tables

The statistical tables are presented at the regional and provincial levels by type of construction and by period according to form of ownership. 

Unpublished Data

Aside from the preliminary tables posted in the PSA website, annual, quarterly and monthly statistical tables at the municipality level by type of construction and by form of ownership are available at the Industry Statistics Division of the PSA.

Other special tabulations may also be made available upon request, addressed to the National Statistician, Philippine Statistics Authority, 3^rd Floor CVEA Building, East Avenue, Quezon City.

Dissemination

Preliminary and final results of construction statistics generated from approved building permits are made public in the form of Quarterly Special Releases posted in the PSA website (www.psa.gov.ph) 65 calendar days after the reference quarter and Annual Special Release, eight months after the reference year, respectively. The Quarterly Special Releases are reports containing the preliminary results of construction statistics generated 60 days after the reference quarter while the Annual Special Release is a consolidated report of the quarterly preliminary data incorporating documents which are submitted after the cut-off dates for each quarter.

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, an 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.

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 all 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 the value, quality and to improve the aesthetic.

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 multi-dwellings. 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.