Number of Constructions

1. The total number of constructions increased

The number of constructions from approved building permits in the fourth quarter of 2021 was registered at 38,263, which indicates an annual increase of 5.7 percent. Similarly, the annual growth rate increased in the previous quarter at 6.5 percent. In the fourth quarter of 2020, the number of constructions decreased by -7.8 percent annually. (Tables A and 1)

2. Residential buildings had the highest number of constructions

By type of construction, residential reported the highest number of constructions during the quarter at 27,998 constructions or 73.2 percent of the total. This type of construction increased at a rate of 8.1 percent, which was faster compared with the annual decline of -5.4 percent in the same quarter of the previous year. Majority (82.7%) of the total residential constructions were single-type houses. (Figure 1a, and Tables A and 1)

Non-residential type of constructions ranked second with 5,816 or 15.2 percent of the total number of constructions during the quarter. It manifested an increase of 11.0 percent in count compared with the same period of the previous year. About 65.9 percent of the non-residential constructions were commercial buildings. (Figure 1b, and Tables A and 1)

Addition, which refers to any new construction that increases the height or area of an existing building/structure, and alteration and repair of existing structures, had shares of 2.7 and 8.9 percent, respectively, to the total number of constructions. Compared with their respective annual rates in the same period of the previous year, addition-type of construction increased at a rate of 91.8 percent this quarter, while alteration and repair dropped at a rate of -24.7 percent. (Tables A and 1)

3. Number of constructions was highest in CALABARZON

CALABARZON consistently registered the highest number of constructions with 9,811 constructions or 25.6 percent share to the total during the quarter. Among the top three regions with the second and third number of constructions were Central Luzon with 5,371 (14.0%) constructions and Central Visayas with 4,432 (11.6%) constructions. (Figure 2 and Table 2)

Value of Constructions

1. The total value of constructions expanded

During the quarter, the total value of constructions was PhP 90.90 billion which represents an annual increase of 24.8 percent. Compared with the previous quarter, it expanded at an annual rate of 18.7 percent, while it declined at an annual rate of -38.3 percent in the fourth quarter of 2020. (Tables A and 1)

2. Residential-type buildings recorded the highest value of constructions

Residential building constructions, valued at PhP 48.40 billion, accounted for 53.2 percent of the total value. This amount expanded by 30.9 percent from the PhP 36.97 billion total construction value in the same quarter of 2020. (Figure 3a, and Tables A and 1)

Value of non-residential constructions, which amounted to PhP 36.34 billion, accounted for 40.0 percent of the total value during the quarter. This reflects a 24.2 percent increase from the PhP 29.25 billion value of non-residential construction in the same quarter of the previous year. (Figure 3b, Tables A and 1)

For this quarter, the value of construction for addition to, and alteration and repair to existing structures amounted to PhP 0.86 billion (0.9%) and PhP 5.30 billion (5.8%), respectively. Construction for addition expanded at an annual rate of 85.3 percent, while construction for alteration and repair of existing structure declined at annual rate of -14.1 percent. (Tables A and 1)

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

The combined shares of the top three regions, in terms of value of constructions, amounted to PhP 52.74 billion or 58.0 percent of the total. These regions were:

1. NCR, PhP 20.02 billion (22.0%)
2. CALABARZON, PhP 18.79 billion (20.7%) and
3. Central Luzon, PhP 13.94 billion (15.3%). (Figure 4 and Table 2)

Floor Area

1. Reported total floor area of constructions increased

The total floor area of constructions for this quarter was posted at 7.92 million square meters. This translates to an annual increase of 21.3 percent, from 10.0 percent increase in the previous quarter. On the other hand, it declined at an annual rate of -31.9 percent in the fourth quarter of 2020. (Tables A and 1)

2. Residential-type buildings accounted for more than half of the total floor area of constructions

Residential constructions recorded 4.44 million square meters or 56.1 percent of the total floor area of constructions this quarter. It increased at an annual rate of 26.3 percent compared with the previous year’s same quarter decline of -24.1 percent.

Similarly, non-residential construction recorded 3.38 million square meters or 42.8 percent of the total floor area of constructions this quarter. This translates to an annual increase of 14.7 percent compared with the previous year’s same quarter annual drop of -38.4 percent. (Tables A and 1)

Average Cost per Square Meter

1. Average cost of construction expanded

The average cost of construction in the fourth quarter of 2021, excluding those for alteration and repair, and other non-residential, was PhP 10,790 per square meter. It increased at an annual rate of 5.7 percent compared with the previous quarter’s annual increase of 3.5 percent. On the contrary, the average cost per square meter declined by -12.4 percent in the fourth quarter of 2020. (Table 1)

2. Residential buildings had the highest average cost of constructions

Among types of constructions, residential buildings had the highest average cost of PhP 10,900 per square meter during the quarter. This was followed by non-residential with PhP 10,679 per square meter, and addition to existing constructions with PhP 9,490 per square meter. (Table 1)

3. Residential condominium construction was the most expensive among types of residential construction

Among residential constructions, residential condominiums posted the highest average cost of PhP 19,020 per square meter during the quarter, while residential apartment/accessoria recorded the lowest average cost at PhP 8,646 per square meter. (Figure 5a and Table 1)

4. Institutional-type buildings were the costliest among non-residential constructions

For this quarter, institutional-type building constructions reported the highest average cost of PhP 13,174 per square meter. On the other hand, agricultural-type buildings continued to register the lowest average cost of PhP 4,995 per square meter.  (Figure 5b and Table 1)

(SGD) 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 fourth quarter of 2021. Data are presented at the regional and provincial levels with monthly and quarterly disaggregation.

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 the Philippine Statistics Authority (PSA) field personnel from the Offices of Local Building Officials (LBOs).

Limitations of data

1. Data on building constructions are based on 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 fourth quarter of 2021, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2021.

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).

Revision

All documents received after the cut-off date, which is 40 days after the reference quarter, are included in the generation of revised results. The revised data of the previous quarter are reported during the release of the preliminary report of the current quarter. Revisions are made for the previous quarters until the annual report is released seven months after the reference year,

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 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.