Building permit applications nationwide grow by 10.7 percent

1. Approved building permits nationwide summed up to 21,513 during the third quarter of 2007, representing a 10.7 percent growth compared with 19,431 recorded during the same quarter of the previous year. 
    

2. Increases in building permit applications were observed for both residential and non-residential building constructions. Approved building permits for residential building construction grew by 15.4 percent to 15,145 from 13,121 while non-residential building construction increased by a modest 3.6 percent to 2,539 from 2,450 during the same period of 2006. 
    

3. On the other hand, combined approved building permits for additions, alterations and repairs decreased by 0.8 percent to 3,829 from 3,860 approved building permits. Figure 1 compares the number of approved building permits by type of building for the third quarters of 2007 and 2006. 
    

    
    

4. Across the country, CALABARZON recorded the highest number of approved building permits with 3,391 applications or 15.8 percent of the total. This number is 23.4 percent lower compared with 4,425 applications reported during the third quarter of the previous year. Central Visayas followed closely with 15.8 percent of the total or 3,389 applications. This figure, however, is significantly lower by 65.6 percent compared with 2,046 applications reported during the same quarter of the previous year. 
    

5. Three (3) provinces registered approved building permits exceeding a thousand mark. These were Cebu (2,257), Cavite (1,481) and Bulacan (1,353). Figure 2 displays the regional distribution of approved building permit applications for the third quarter of 2007. 
    

    
    

   Value of residential building construction decreases by 11.1 percent 
    

6. Total value of construction amounted to P24.9 billion during the third quarter of 2007. This figure is 11.1 percent lower compared with P28.0 billion registered during the same quarter of the previous year. 
    

7. Value of construction for residential buildings increased by 7.9 percent to P13.1 billion from P12.2 billion recorded during third quarter of the previous year. 
    

8. On the other hand, value of construction for non-residential building amounting to P9.7 billion was lower by 27.6 percent from P13.4 billion recorded during the same quarter of the previous year. Combined value for additions, alterations and repairs, estimated at P2.0 billion, slid by 15.4 percent from P2.4 billion registered during the same quarter of the previous year. Figure 3 compares the aggregate value of construction by type of building for the third quarters of 2006 and 2007. 
    

   
    

9. Across the country, value of construction in the National Capital Region (NCR) consistently remained highest at P9.4 billion accounting for 37.9 percent share of the total value. CALABARZON and Central Visayas ranked second and third with shares of 14.9 percent (P3.7 billion) and 10.5 percent (P2.6 billion), respectively. 
    

   Average cost per square meter of residential building construction is P7,292 
    

10. During the third quarter of 2007, aggregate value of construction for residential buildings reached P13.1 billion and with a total floor area of 1.80 million square meters, translating to an average cost of P7,292 per square meter. This figure represents an increase of 4.8 percent compared with the average cost of P6,961 per square meter during the same quarter of the previous year. 
     

11. Single type residential units, comprising 85.3 percent of total approved permits for residential building construction, recorded the highest number of residential construction. This type of construction with 12,926 approved building permits had a total floor area of 1.53 million square meters, and an aggregate value of P11.0 billion or an average cost of P7,205 per square meter . 
     

12. Approved building permits for apartment/accessoria ranked a far second with 1,615 applications representing 10.7 percent of total residential constructions. It had a total floor area of 0.18 million square meter and an estimated construction value of P1.4 billion or an average cost of P7,754 per square meter. 
     

13. Residential condominium, with 74 applications (0.5%), recorded the least number of applications among the residential type of building construction. This type of residential building had a total floor area of 0.03 million square meter, valued at P0.03 billion or an average cost of P6,537 per square meter. Figure 4 shows the comparison of the number and value by type of residential building construction during the third quarters of 2007. 
     

     
     

    Average cost per square meter of non-residential building construction is P8,150 
     

14. Aggregate value of construction for non-residential building during the third quarter of 2007 was estimated at P9.7 billion with a total floor area of 1.20 million square meters, translating to an average cost of P8,150 per square meter. 
     

15. More than half or 60.4 percent of non-residential building construction was for commercial type of building with 1,535 applications. Value of construction for this type of non-residential building construction was P5.4 billion and a total floor area of 0.68 million square meters or an average cost of P7,868 per square meter. 
     

16. Institutional buildings which ranked second recorded 449 approved building permit applications (17.7%) with a total floor area of 0.28 million square meter and construction value of P2.5 billion or an average cost of P8,782 per square meter. 
     

17. Agricultural type of building had the least number of approved building permits at 61 or 2.4 percent of the total. Value of construction for this type reached P0.08 billion with a total floor area of 0.03 million square meter or an average cost of P2,875 per square meter. Figure 5 shows the number and value by type of non-residential building construction during the third quarter of 2007.

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 Ifugao, Mountain Province, Zamboanga Sibugay, Maguindanao (excluding Cotabato City), and Lanao del Sur 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 Offices 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 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 - 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, freestanding structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend the foundation to the roof.

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.

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.

Additions/Alterations and Repairs - Construction works by which the utility of building or structure is raised or at least renewed or which materially extends the normal life of the building or structure.

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