Number of Constructions

1. Number of constructions dropped

The number of constructions from approved building permits reached 39,638 in the second quarter of 2022. This indicates an annual drop of  -6.4 percent, which was slower than the previous quarter’s annual growth rate of -6.5 percent. In the second quarter of 2021, the number of constructions increased by 136.2 percent annually. (Table A)

2. Residential buildings still recorded the highest number of constructions

By type of construction, residential buildings reported the highest number of 28,411 constructions or 71.7 percent of the total number of constructions during the quarter. This type of construction declined at an annual rate of -5.7 percent compared with the 30,139 constructions in the same quarter of the previous year. Majority of the total residential constructions were single-type houses with 24,727 (87.0%). (Figure 1a, and Tables A and 1)

Non-residential type of constructions ranked second with 6,646 or 16.8 percent of the total number of constructions during the quarter. This indicates an increase of 5.7 percent compared with the 6,285 constructions recorded in the same period of the previous year. Most of the non-residential constructions were commercial buildings with 4,584 (69.0%). (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 contributed 3.1 percent and 8.4 percent to the total number of constructions during the quarter, respectively. Compared with their respective number of constructions in the same period of the previous year, addition-type of construction expanded at an annual rate of 0.1 percent this quarter, while alteration and repair dropped at an annual rate of -28.9 percent. (Tables A and 1)

3. Number of constructions was highest in CALABARZON

CALABARZON continued to register the highest number of constructions with 10,071 or 25.4 percent share to the total number of constructions during the quarter. Completing the top three regions with the highest number of constructions were Central Luzon with 5,122 constructions (12.9%) and Central Visayas with 4,846 constructions (12.2%). (Figure 2 and Table 2)

Value of Constructions

1. Total value of constructions increased

In the second quarter of 2022, the total value of constructions amounted to PhP 99.60 billion, which translates to an annual increase of 8.0 percent. In the first quarter of 2022, it dropped at an annual rate of -11.7 percent, while it expanded at an annual rate of 221.9 percent in the second quarter of 2021. (Tables A and 1)

2. Residential-type recorded the highest value of constructions

Residential building constructions, valued at PhP 49.27 billion, accounted for almost half or 49.5 percent of the total value of constructions during the quarter. This amount increased by 3.5 percent from its PhP 47.60 billion total construction value in the same quarter of 2021. Among residential constructions, single house had the highest value of constructions at PhP 34.30 billion (69.6%). (Figure 3a, and Tables A and 1)

Meanwhile, the value of non-residential constructions, amounting to PhP 44.06 billion, contributed 44.2 percent to the total value of constructions during the quarter. This reflects a 21.7 percent annual increment from the PhP 36.20 billion value of non-residential constructions in the same quarter of the previous year. Among non-residential constructions, commercial buildings registered the highest value of constructions at PhP 21.29 billion (48.3%). (Figure 3b, Tables A and 1)

In the second quarter of 2022, the value of constructions of addition, and alteration and repair to existing structures amounted to PhP 0.93 billion (0.9%) and PhP 5.34 billion (5.4%), respectively. The construction value for addition to existing structures expanded at an annual rate of 2.0 percent, while the value of constructions for alteration and repair of existing structures declined at an annual rate of -29.2 percent. (Tables A and 1)

3. The 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 54.81 billion or 55.0 percent of the total value of constructions during the quarter. These regions were:

1. National Capital Region, PhP 21.45 billion (21.5%);

2. CALABARZON, PhP 19.49 billion (19.6%); and

3. Central Luzon, PhP 13.88 billion (13.9%).

(Figure 4 and Table 2)

Floor Area

1. The reported total floor area of constructions increased

The total floor area of constructions for this quarter was recorded at 8.54 million square meters. This translates to an annual increase of  8.9 percent from a -5.9 percent annual drop in the previous quarter. On the other hand, it increased at an annual rate of 172.4 percent in the second quarter of 2021. (Tables A and 1)

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

Residential constructions recorded 4.40 million square meters or 51.6 percent of the total floor area of constructions this quarter. It contracted at an annual rate of -3.9 percent compared with the previous year’s same quarter floor area of 4.59 million square meters.

Meanwhile, non-residential constructions recorded 4.03 million square meters or 47.2 percent of the total floor area of constructions during the quarter. This reflects a slower annual increment of 27.4 percent from its floor area of 3.16 million square meters in the same quarter of 2022. (Tables A and 1)

Average Cost per Square Meter

1. The average cost of constructions expanded

The average cost of constructions in the second quarter of 2022, excluding those for alteration and repair, and other non-residential, was registered at PhP 11,669.09 per square meter. It increased at an annual rate of  6.5 percent compared with the previous year’s same quarter average cost of PhP 10,959.81 per square meter. (Table 1)

2. Residential buildings had the highest average cost of constructions

Among types of construction, residential buildings had the highest average cost of PhP 11,186.38 per square meter during the quarter. This was followed by non-residential with PhP 10,849.58 per square meter and addition to existing structures with PhP 8,939.73 per square meter. (Table 1)

3. Residential condominium constructions were the most expensive among types of residential constructions

Among residential constructions, residential condominiums posted the highest average cost of PhP 17,279.65 per square meter during the quarter, while other residential recorded the lowest average cost at PhP 5,461.13 per square meter. (Figure 5a and Table 1)

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

For this quarter, institutional-type building constructions reported the highest average cost of PhP 12,680.78 per square meter. On the other hand, agricultural-type buildings continued to register the lowest average cost of PhP 7,960.51 per square meter. (Figure 5b and Table 1)

DIVINA GRACIA L. DEL PRADO, PhD
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

TECHNICAL NOTES
Construction Statistics from Approved Building Permits

I. Introduction

I.1. Introduction

The Philippine Statistics Authority (PSA) serves as the central statistical authority of the government on primary data collection which includes the consolidation of selected administrative recording systems. Construction statistics from approved building permits is one of the data generated by PSA based on administrative records. It is compiled by PSA from the copies of approved building permits issued by the Local Building Officials (LBOs) of the Local Government Units (LGUs).

However, the approved building permits issued by LBOs is just one of the sources of construction statistics. Other sources of construction statistics are the surveys of construction establishments and enterprises conducted by the PSA, and the administrative-based data from the Department of Public Works and Highways (DPWH) and the Commission on Audit.

This Special Release presents the preliminary data on construction statistics from approved building permits for the second quarter of 2022. Data are presented at the regional, provincial and/or Highly Urbanized City (HUC) levels with monthly and quarterly disaggregation.

I.2. Objectives

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

1. number of units/buildings
2. floor area of the buildings
3. types of construction
4. value of construction

 
I.3. Historical Background

The collection of approved building permit forms started in 1977 when the then National Census and Statistics Office (NCSO) (now part of the PSA) and the Ministry of Local Government and Community Development entered into an informal agreement in 1976 to implement the provisions of the National Building Code (NBC) and to monitor the building permit forms.

Later, on 11 July 1979, a Memorandum of Agreement (MOA) between the NCSO and the former Ministry of Public Works, Transportation and Communication (MPWTC) (now the DPWH) defined the agencies’ responsibilities in the generation of construction statistics. The NCSO was responsible for the collection, processing, analysis, and dissemination of construction statistics, while MPWTC shouldered the printing of the building permit forms from 1980 onwards.

In 1993, a joint Memorandum Circular was issued by the Department of Interior and Local Government and the DPWH defining the duties and responsibilities of the municipal/city engineers relative to the implementation of the NBC and in the production of construction statistics from approved building permits. As a result, the printing of the building permits and certificate of completion forms became the responsibility of the LBOs.

On 15 July 2005, the DPWH through the National Building Code Development Office (NBCDO) issued Memorandum Circular No. 01 series of 2005 instructing all LBOs to implement the revised Implementing Rules and Regulations (IRR) including the use of the new building permit form.

The building permit form under the old IRR is valid for use by LGUs until today.

I.4. Scope and Coverage

Construction statistics presented in this special release are based on the approved building permits on new constructions, additions, and alterations and repairs of existing residential and non-residential buildings, and other structures, which are proposed to be constructed in different cities/municipalities of the country.

I.5. Geographic Classification

For the second quarter of 2022, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2021.

II. Data Collection

II.1. Data Collection

The collection of the approved building permits from the LBOs is done within the first five working days after each reference month by a PSA field staff.

II.2. Sources of Data

Construction statistics are compiled by the PSA 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 LBOs nationwide.

II.3. Statistics Generated

Construction statistics generated from approved building permits provide monthly data on building construction at the regional and provincial levels. The statistics generated are the following:

1. number of constructions
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 in OpenStat.

II.4. Limitations of Data

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.

The completeness of construction data relies on the approved applications filed in the LBOs. Hence, building constructions without approved building permits are not part of the tabulation of data.

III. Concepts and Definitions of Terms

The definition of terms is 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 plants, 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., schools, museums, libraries, sanitaria, churches, hospitals.

Agricultural buildings are buildings used to house livestock, plants, and agricultural products such as barns, poultry houses, piggeries, stables, greenhouses, and grain mills.

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.

IV. Dissemination of Results and Revision

V.1 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 50 days after the reference quarter in the PSA website. The statistical tables are also available in OpenStat.

V.2 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.

V. Citation

Philippine Statistics Authority. (July 2023). Technical Notes on the Construction Statistics from Approved Building Permits. https://psa.gov.ph/technical-notes/buildingpermit

VI. Contact Information

John Paul C. Sacop
(Supervising Statistical Specialist)
Officer-in-Charge
Industry Statistics Division
(632) 8376-2060
non-mfg.staff@psa.gov.ph
isd.staff@psa.gov.ph

For data request, you may contact the:
Knowledge Management and Communications Division
(632) 8462-6600 local 839
info@psa.gov.ph