Construction projects up by 11.2 percent

1. A total count of 32,729 new construction projects from approved building permits in the country were reported during the second quarter of 2014. This number represents an increase of 3,305 projects or 11.2 percent compared to 29,424 construction projects over the same quarter in 2013.

2. Residential-type constructions picked up by 11.5 percent to 23,817 from 21,360 during the same period of 2013, attributed to the increases in the construction of single and duplex/quadruplex-type houses. Single-type houses rose by 14.2 percent and duplex/quadruplex-type houses by 5.6 percent.

3. Non-residential constructions grew slightly by 1.8 percent to 3,567 from 3,504 during the same period of last year. The increase in number was brought by the growth in the construction of industrial (15.7%), institutional (9.3%), agricultural (6.4%), and commercial (5.3%) buildings.

4. Likewise, the number of additions, alterations and repairs of existing structures aggregating to 5,345 construction projects increased by 17.2 percent from 4,560 projects recorded during the same quarter of 2013. Figure 1 compares the number of construction projects by type of construction for the second quarters of 2014 and 2013.

5. The top five regions in terms of the number of constructions projects accounted for 64.9 percent of the total. Region 4A (CALABARZON) led the regions with 7,892 construction projects accounting for about one-fourth (24.1%) of the total. Region 3 (Central Luzon) came next with 4,083 (12.5%) construction projects. Other regions in the top five were as follows:

• Region VII (Central Visayas) with 3,376, (10.3%)
• National Capital Region (NCR) with 3,260, (10.0%)
• Region XI (Davao Region) with 2,642 (8.1%).

        Figure 2 shows the distribution of new construction projects by region.

6. At the provincial level, the top ten provinces made up about half (46.7%) of the total number of construction projects. Cavite reported the highest number of construction projects with 3,294 (10.3%), followed by Bulacan and Davao Del Sur with respective shares of 1,841 (5.6%) and 1,673 (5.1%) construction projects. Laguna with 1,575 (4.8%) and Batangas with 1,509 (4.6%) construction projects ranked fourth and fifth, respectively.  Completing the top ten provinces with the most number of construction projects were as follows:

• Bohol with 1,343 (4.1%)
• Rizal with 1,090, (3.3%)
• Cebu with 1,020 (3.1%)
• Negros Oriental with 982, (3.0%)
• Pangasinan with 958, (2.9%)

7. Among the top ten provinces, Davao del Sur posted the highest growth in number of construction projects, about 78.9 percent higher than the 935 construction projects registered during the same quarter in 2013.

Value of new construction projects up by 5.3 percent

8. Total value of construction projects during the second quarter of 2014 rose 5.3 percent to PHP69.9 billion from PHP66.4 billion recorded during the second quarter of 2013.

9. Value of new residential buildings recorded an increase of 5.8 percent amounting to PHP34.5 billion from PHP32.6 billion during the same quarter of 2013.

10. On the other hand, value of new non-residential building constructions dropped by 3.5 percent amounting to PHP27.5 billion from PHP28.5 billion registered during the second quarter of 2013, inspite of the 1.8 percent increase in the number of projects.

11. Combined value for additions, alterations and repairs of existing structures, estimated at PHP7.9 billion, surged by 49.9 percent from PHP5.3 billion registered during the same period of 2013. Figure 3 compares the value of construction by type of building for the second quarters of 2014 and 2013.

12. Across the country, combined construction value of the top five regions comprised more than three-fourths (77.2%) of the total. NCR consistently remained highest at PHP27.7 billion, accounting for 39.6 percent of the total value of construction, followed far behind by CALABARZON with construction value of PHP12.2 billion (17.4%). Central Luzon and Central Visayas placed third and fourth with respective shares of PHP5.6 billion (8.1%) and PHP4.6 billion (6.6%). Western Visayas, with construction value of PHP3.9 billion (5.6%), ranked fifth.

13. During the second quarter of 2014, Central Luzon outranked Central Visayas in the third slot while Western Visayas replaced Davao Region in the fifth place.

Average cost of residential-type building is PHP9,552 per square meter

14. Total value of construction for residential-type buildings was estimated at PHP34.5 billion with a total floor area of 3.6 million square meters, translating to an average cost of PHP9,552 per square meter. This figure represents a decrease of 2.1 percent compared with the average cost of PHP9,754 per square meter of the same period last year.

15. Among the residential buildings, single-type house recorded the most number with 20,774 construction projects or 87.2 percent of the total. Total value of construction for this type amounted to PHP17.7 billion covering a total floor area of 2.0 million square meters, translating to an average cost of PHP8,840 per square meter.

16. Apartment/accessoria distantly followed with 2,452 construction projects or 10.3 percent of total residential construction. This type of residential construction recorded a construction value of PHP5.3 billion with total floor area of 674.2 thousand square meters or an average cost of PHP7,833 per square meter.

17. Duplex/quadruplex-type recorded a total of 525 construction projects or 2.2 percent of the total residential construction. Total value for this type amounted to PHP646.1 million and a total floor area of 69.8 thousand square meters or an average cost of PHP9,257 per square meter.

18. Residential condominiums reported the least number with only 22 construction projects, construction value of PHP10.8 billion and total floor area of 859.0 thousand square meters, translating to an average cost of PHP12,606 per square meter. Figure 4 displays the percentage distribution of the number and value of new residential construction by type for the second quarter of 2014.

Average cost of non-residential construction is PHP11,534 per square meter

19.  Total value of non-residential construction for the second quarter of 2014 reached PHP27.5 billion covering a total floor area of 2.4 million square meters. This translates to an average cost of PHP11,534 per square meter.

20. Commercial-type buildings dominated all other types of non-residential construction with 2,197 or 61.6 percent of the total. Total value of construction for this type amounted to PHP13.9 billion, with a total floor area of 1.3 million square meters or an average cost of PHP10,682 per square meter.

21. Institutional buildings, which ranked a far second, registered 655 projects or 18.4 percent of the total non-residential construction, with construction value of PHP 7.0 billion and  total floor area of 513.8 thousand square meters or an average cost of PHP13,646 per square meter. 

22. Agricultural-type buildings numbering to 182 or 5.1 percent of the total non-residential construction, recorded a construction value of PHP0.6 billion and total floor area of 123.9 thousand square meters. This reflects an average cost of PHP4,665 per square meter. Figure 5 shows the number and value of new non-residential constructions by type for the second quarter of 2014.

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 second quarter of 2014, generated 60 days after the reference quarter.

For this publication, data for the provinces of Basilan (excluding Isabela City), Lanao Del Sur, Sulu, and Tawi-Tawi, all from the Autonomous Region in Muslim Mindanao (ARMM) are not included in the tabulation as these provinces did not submit any building permit document and certification of no construction 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 5.   

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/municipalities of the country in a specific period.

Source of Information

Construction statistics are compiled by the Philippine Statistics Authority - National Statistics Office (PSA-NSO) from the copies of original application forms of approved building permits as well as from the demolition permits collected every month by PSA-NSO field personnel from the Offices of Local Building Officials (LBOs) 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 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). The geographic codes are in accordance with NSCB Resolution No. 3, Series of 2005 that approved the PSGC.

Industry Classification

Construction statistics utilizes the amended 1994 Philippine Standard Industrial Classification to classify the main activity through the use or type of occupancy of the building.

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 is 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 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 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, quadruplex, 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 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 constructions consist 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 Building includes 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 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 are 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 are buildings which are used to house livestocks, 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.

Alteration refers to construction in a 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 refers to remedial work done on any damaged or deteriorated portion/s of a structure to restore its original condition.

Demolitions refer to the systematic dismantling or destruction of a building/structure 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.