Construction Statistics from Approved Building Permits Second Quarter 2021

Reference Number: 

2021-377

Release Date: 

Monday, September 13, 2021

TABLE A.  Summary of Construction Statistics from Approved Building Permits, Philippines

Second Quarter 2020, First Quarter 2021r and Second Quarter 2021p
Type of Construction Second Quarter 2020 First Quarter 2021r Second Quarter2021p
Level
Annual
Growth
Rate
(percent)
Level
Annual
Growth
Rate
(percent)
Level
Annual
Growth
Rate
(percent)
Total            
Number 17,932 -61.4 36,621 4.7 38,389 114.1
Floor Area (sq.m.) 2,878,055 -73.8 7,251,716 -17.7 7,142,459 148.2
Value (PhP '000) 28,664,096 -78.4 87,548,880 -9.5 84,356,387 194.3
Residential            
Number 13,499 -61.0 25,353 10.0 27,375 102.8
Floor Area (sq.m.) 1,472,599 -74.0 4,220,115 8.8 4,207,597 185.7
Value (PhP '000) 14,151,833 -79.5 50,180,608 21.0 43,794,829 209.5
Non-residential            
Number 2,532 -59.8 5,798 -9.4 5,550 119.2
Floor Area (sq.m.) 1,383,189 -73.3 2,888,318 -39.5 2,864,237 107.1
Value (PhP '000) 13,317,440 -76.0 32,496,068 -33.7 32,829,707 146.5
Addition            
Number 394 -75.7 883 -30.9 1,174 198.0
Floor Area (sq.m.) 22,267 -84.7 143,283 -9.8 70,625 217.2
Value (PhP '000) 205,977 -81.6 1,438,123 -20.1 727,246 253.1
Alteration and Repair            
Number 1,507 -62.0 4,405 7.5 4,290 184.7
Value (PhP '000) 988,846 -86.1 3,434,080 -23.0 7,004,606 608.4

p – preliminary;  r – revised
Note: Details of floor area and value may not add up to their respective totals due to rounding.
Source: Philippine Statistics Authority

Number of Constructions

  1. Number of constructions increased

The number of constructions in the second quarter of 2021 registered a total of 38,389, indicating an annual expansion of 114.1 percent. This increase was faster than the previous quarter’s annual growth rate of 4.7 percent. In the second quarter of 2020, the number of constructions decreased by -61.4 percent annually. (Table A)

  1. Residential had the highest number of constructions

By type of construction, residential reported the highest number of constructions during the quarter at 27,375 or 71.3 percent of the total number of constructions. This type of construction increased at a rate of 102.8 percent, which was contradictory to the annual decline of -61.0 percent in the same quarter of 2020. Majority (82.4%) of the total residential constructions were single-type houses. (Figure 1a, and Tables A and 1)

Non-residential constructions, which accounted for 14.5 percent of the total constructions during the quarter, ranked second. It manifested an increase of 119.2 percent relative to its count in the same period of the previous year. About 69.2 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 a share of 3.1 percent and 11.2 percent, respectively, to the total number of constructions. Compared with their respective annual rates in the same quarter of the previous year, both addition to existing structures, and alteration and repair posted an expansion of 198.0 percent and 184.7 percent, respectively. (Tables A and 1)

  1. Number of constructions was highest in CALABARZON

CALABARZON remained to have the highest number of constructions with 9,773 constructions or 25.5 percent share to the total during the quarter. Completing the top three regions were Central Visayas with 5,608 (14.6%) constructions and Ilocos Region with 4,659 (12.1%) constructions. (Figure 2 and Table 2)

 

Value of Constructions

  1. Total value of constructions increased

In the second quarter of 2021, the total value of constructions was PhP 84.36 billion, which represents an annual increase of 194.3 percent. However, value of constructions dropped at an annual rate of -9.5 percent in the previous quarter and -78.4 percent in the second quarter of 2020. (Tables A and 1)

  1. Residential recorded the highest value of constructions

Residential building constructions, valued at PhP 43.79 billion, accounted for 51.9 percent of the total value of constructions in the second quarter of 2021. This amount expanded by 209.5 percent from the PhP 14.15 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 32.83 billion, accounted for 38.9 percent of the total value during the quarter. This translates to a 146.5 percent increment from the
PhP 13.32 billion value of non-residential construction in the same quarter of the previous year. (Figure 3b, and Tables A and 1)

 

For this quarter, the value of construction for addition to, and alteration and repair of existing structures amounted to PhP 0.73 billion (0.9%) and PhP 7.00 billion (8.3%), respectively. These types of constructions expanded at an annual rate of 253.1 percent for addition to existing structures and 608.4 percent for alteration and repair. (Tables A and 1)

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

The combined shares of the top three regions, in terms of value of constructions, totaled to PhP 46.63 billion or 55.3 percent of the total. These regions were:

  1. CALABARZON, PhP 20.09 billion (23.8%)
  2. NCR, PhP 16.56 billion (19.6%)
  3. Ilocos Region, PhP 9.97 billion (11.8%). (Figure 4)

 

Floor Area

  1. Reported total floor area of constructions expanded

The total floor area of construction for this quarter was posted at 7.14 million square meters, translating to an annual increase of 148.2 percent. On the contrary, the total floor area of construction recorded annual decreases of-17.7 percent in the previous quarter and -73.8 percent in the second quarter of 2020. (Table A)

  1. Residential accounted for more than half of the total floor area of constructions

Residential constructions recorded 4.21 million square meters or 58.9 percent of the total floor area of constructions this quarter. It increased at an annual rate of 185.7 percent compared to the previous year’s same quarter decline of -74.0 percent.

Likewise, non-residential construction, which accounted for 2.86 million square meters or 40.1 percent of the total floor area of constructions, exhibited a faster annual increase of 107.1 percent from the previous year’s same quarter drop of -73.3 percent. (Table 1)

Average Cost per Square Meter

  1. Average cost of construction expanded

The total average cost of construction in the second quarter of 2021 was PhP 10,814 per square meter. This indicates a faster increase of 12.7 percent compared with the previous quarter’s increase of 10.7 percent. On the contrary, the average cost per square meter declined by -16.0 percent in the second quarter of 2020. (Table 1)

  1. Non-residential had the highest average cost of constructions

Among types of constructions, non-residential had the highest average cost of PhP 11,423 per square meter during the quarter. This was followed by residential with PhP 10,408 per square meter, and addition to existing constructions with PhP 10,297 per square meter. (Table 1)

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

Among residential constructions, residential condominiums posted the highest average cost of PhP 13,743 per square meter during the quarter. The lowest average cost per square meter of PhP 9,210 was recorded in apartment/accessoria type of residential construction. (Figure 5a and Table 1)

  1. Industrial-type buildings were the costliest among non-residential buildings

For this quarter, industrial-type building constructions reported the highest average cost of PhP 16,906 per square meter among types of nonresidential buildings. On the other hand, agricultural-type building constructions continued to register the lowest average cost of PhP 4,552 per square meter. (Figure 5b and Table 1)

 

 

 

 

 


TECHNICAL NOTES

Introduction

This Special Release presents the preliminary data on construction statistics from approved building permits for the second quarter of 2021. Data are presented at the regional and provincial levels with monthly disaggregation.

Scope and Coverage

Construction statistics presented in this special release are based on the 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.
  1. 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 first quarter of 2021, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2020.

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 the 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, and 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 multidwellings. 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 theapproved building permit and represents the estimated value of the building or structure when completed

 

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