Approved building permit applications posts a 9.3 percent growth

1. Approved building permits nationwide were recorded at 25,145 during the second quarter of 2008, representing an increase of 9.3 percent compared with 23,003 applications received during the same period of 2007. 
    

2. An increase in applications was observed for both residential and non-residential building construction. Residential building construction went up by 16.9 percent to 18,451 from 15,781 approved building permits during the same quarter of 2007. Non-residential constructions, likewise, increased by 7.5 percent to 2,707 from 2,518 recorded during the same quarter of 2007. 
    

3. However, combined approved building permits for additions, alterations and repairs decreased by 15.2 percent to 3,987 from 4,704 approved building permits.Figure 1 compares the number of approved building permits by type of building for the second quarters of 2008 and 2007. 
    

    
    

4. Regionwise, the number of approved building permits was highest in CALABARZON (Region IV-A) with 5,096 applications or 20.3 percent of total . This was followed by the National Capital Region (NCR) with 4,184 applications or 16.7 percent of the total. Figure 2 displays the regional distribution of approved building permit applications for the second quarter of 2008. 
    

5. Six (6) provinces registered approved building permits exceeding more than a thousand mark. These were Bulacan (1,377), Cavite (1,719), Laguna (1,014), Rizal (1,108), Cebu (1,069), and Davao del Sur (1,077). 
    

   
    

   Total value of construction surges by 29.2 percent 
    

6. Total value of construction during the second quarter of 2008 was estimated at P38.3 billion. This figure represents an increase of 29.1 percent from P29.7 billion recorded during the same period of 2007. 
    

7. Value of construction for residential buildings rose by 36.5 percent to P18.3 billion, from P13.4 billion recorded during the same period of 2007. 
    

8. Value of non-residential building construction, likewise, went up by 19.4 percent to P16.9 billion from P14.1 billion recorded during the same quarter of 2007. 
    

9. Moreover, combined value for additions, alterations and repairs, estimated at P3.1 billion, jumped by 46.9 percent from P2.1 billion registered during the same quarter of the previous year. Figure 3 compares the aggregate value of construction by type of building for the second quarters of 2007 and 2008. 
    

    
    

10. Regionwise, value of construction in the National Capital Region (NCR) consistently remained highest at P20.2 billion, accounting for 52.8 percent share of the total value. CALABARZON and Central Luzon followed a far second and third with shares of 11.8 percent (P4.5 billion) and 8.3 percent (P3.2 billion), respectively. 
     

    Average cost per square meter of residential building construction is P7,624 
     

11. Total value of construction for residential buildings reached P18.3 billion with a total floor area of 2.4 million square meters, translating to an average cost of P7,624 per square meter. 
     

12. Majority of residential building construction were for single type residential units with 16,375 approved building permits or 88.7 percent of the total. This type of residential building construction had a total floor area of 1.9 million square meters, and an aggregate value of P13.0 billion bringing an average cost of P6,970 per square meter. 
     

13. Apartment/accessoria ranked second with 1,442 applications representing 7.8 percent of total residential construction. The total floor area reported for this type was 410.2 thousand square meters with an estimated construction value of P4.3 billion or an average cost of P10,556 per square meter. Figure 4 compares the number and value of residential building construction by type during the second quarters of 2008. 
     

     
     

    Average cost per square meter of non-residential building construction is P10,110 
     

14. Aggregate value of non-residential building construction was estimated at P16.9 billion during the second quarter of 2008. The corresponding total floor area was recorded at 1.7 million square meters, translating to an average cost of P10,110 per square meter. 
     

15. Commercial type of building comprised the bulk or 60.0 percent of the total, with 1,625 approved building permits. Value of construction for this type reached P13.0 billion with the total floor area of 1.1 million square meters or an average cost of P12,029 per square meter. 
     

16. Institutional building construction came next with 441 approved building permits (16.3%), total floor area of 297.3 thousand square meters and construction value of P2.4 billion. 
     

17. Agricultural type of non-residential building construction had the least number of approved building permits with 117 or 4.3 percent of the total. Value of construction for this type reached P0.1 billion covering a total floor area of 44.5 thousand square meters or an average cost of P3,274 per square meter.Figure 5 shows the number and value by type of non-residential building construction by type during the second 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 Lanao del Sur and Romblon are not included in the tabulation as the documents were not received during 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