Number of constructions posts a 12.1 percent growth in 2016

1. The total number of constructions generated from approved building permits for the year 2016 reached 147,998. This number increased by 12.1 percent compared to 132,006 constructions recorded in 2015.

2. Residential constructions recorded a double digit growth of 16.4 percent to 113,097 in 2016 from 97,174 reported in 2015. The double digit increase was attributed to the construction of other residential-type buildings (38.2%), apartment/accessoria-type buildings (33.1%), single-type houses (17.7%) and residential condominiums (11.5%). However, decrement in number of constructions were observed in duplex/quadruplex-type residential dwellings (-51.0%).

3. Non-residential constructions numbering to 17,845 posted a 10.7 percent increase from 16,126 recorded during the same period of previous year. This was brought about by the increase in agricultural (16.6%), industrial (14.1%), commercial (12.5%), and institutional (6.7%) construction projects.

4. Additions to existing structures with 4,504 projects in 2016 declined by 10.1 percent from 5,012 recorded in 2015. Similarly, alterations and repairs of existing structures decreased by 8.3 percent to 12,552 in 2016 from 13,694 projects recorded of previous year.

Figure 1 compares the number of constructions by type for the years 2016 and 2015.

5. In terms of number of construction projects, top five regions in 2016 accounted for 59.0 percent of the total constructions. CALABARZON led other regions with a total construction projects of 34,713 (23.5%). Central Visayas placed second with 14,801 (10.0%) projects, followed by Central Luzon with 14,481 (9.8%) constructions. National Capital Region ranked fourth with 13,166 (8.9%) constructions while Davao Region, having the largest count in Mindanao area, ranked fifth with 10,091 (6.8%) constructions.

Figure 2 shows the distribution of constructions by region.

6. The top ten provinces in terms of number of constructions in 2016 accounted for 46.0 percent of the total. Cavite topped other provinces with 16,362 or 11.1 percent share to total. This was followed by Cebu and Bohol with respective number of 7,469 (5.0%) and 7,183 (4.9%) constructions. Completing the top ten provinces with the most number of construction projects in 2016 were as follows.

• Laguna with 5,876 (4.0%) 
• Batangas with 5,612 (3.8%)
• NCR Fourth District with 5,515 (3.7%)
• Bulacan with 5,335 (3.6%)
• Negros Oriental with 5,140 (3.5%)
• Davao del Sur with 4,820 (3.3%)
• Misamis Oriental with 4,806 (3.2%)

7. Among the top ten provinces, Negros Oriental posted the largest increase in the number of constructions, higher by 56.8 percent from 3,278 projects in 2015. The increase in number was mainly attributed to the construction of single-type residential houses in the province.

Total value of constructions in 2016 increases by 14.3 percent

8. Total value of constructions reached PHP378.9 billion in 2016, representing an increase of 14.3 percent from the previous year’s construction value of PHP331.6 billion.

9. Value of residential constructions, accounting for about half (49.5%) of the total value of constructions was estimated at PHP187.6 billion. This translates to a growth of 17.2 percent from previous year’s value of PHP160.1 billion.

10. Construction value of non-residential constructions amounting to PHP162.5 billion posted a 13.5 percent increase compared with PHP143.2 billion in 2015.

11. Alterations and repairs of existing structures valued at PHP24.0 billion, likewise increased by 9.2 percent compared with PHP22.0 billion recorded in 2015. On the other hand, value of additions to existing structures declined by 24.5 percent to PHP4.8 billion from PHP6.3 billion in 2015.

Figure 3 compares the value of constructions by type for 2016 and 2015.

12. Across the country, combined construction value of the top three regions amounting to PHP248.7 billion accounted for 65.6 percent of the total. NCR which ranked fourth in the number of constructions consistently remained highest in terms of value of construction estimated at PHP157.4 billion or 41.5 percent of the total. This was followed by CALABARZON and Central Visayas with respective construction values of PHP62.3 billion (16.4%) and PHP29.0 billion (7.7%).

Average cost per square meter of residential-type building is PHP10,664

13. In 2016, total value of residential building constructions was estimated at PHP187.6 billion with a total floor area of 17.6 million square meters, which translated to PHP10,664 average cost per square meter. This figure is 4.8 percent higher than the average cost per square meter of PHP10,180 in 2015.

14. Among residential constructions, single-type houses with 97,460 projects recorded the most number accounting for 86.2 percent of the total. Value of construction for this type amounted to PHP83.2 billion covering a total floor area of 9.4 million square meters or an average cost of PHP8,879 per square meter.

15. Apartment/accessoria-type units ranked second with 13,274 projects or 11.7 percent of the total residential constructions. This type of construction valued at PHP25.9 billion had a total floor area of 3.4 million square meters or an average cost of PHP7,658 per square meter.

16. Duplex/quadruplex-type dwellings came in next with 2,000 projects or 1.8 percent of the total residential constructions. Construction value for this type amounted to PHP2.5 billion with a total floor area of 288.0 thousand square meters or an average cost of PHP8,629 per square meter.

17. Residential condominiums numbering to only 175 (0.2%) construction projects had construction value of PHP75.7 billion and a total floor area of 4.5 million square meters, translating to an average cost of PHP16,767 per square meter.

Figure 4 shows the number and value of residential constructions by type in 2016.

Average cost per square meter of non-residential construction is PHP11,269

18. Total value of non-residential constructions in 2016 reached PHP162.5 billion covering a total floor area of 14.4 million square meters. This represented an average cost of PHP11,269 per square meter, a slight increase of 0.7 percent compared with PHP11,195 average cost per square meter in 2015.

19. Commercial-type buildings dominated all other types of non-residential constructions with 10,693 projects or 59.9 percent of the total. Construction value for this type was estimated at PHP99.4 billion with a total floor area of 8.0 million square meters or an average cost of PHP12,384 per square meter.

20. Institutional-type buildings followed with 3,682 projects (20.6%). This type of construction valued at PHP25.8 billion had total a floor area of 2.3 million square meters or an average cost of PHP11,195 per square meter.

21. Industrial-type buildings came in next with 2,140 projects (12.0%). Total construction value for this type was estimated at PHP32.8 billion with a total floor area of 3.3 million square meters or an average cost of PHP10,071 per square meter.

22. Agricultural-type buildings made up of 900 projects or 5.0 percent of the total non-residential constructions. Construction value for this type amounted to PHP3.7 billion with a total floor area of 842.3 thousand square meters or an average cost of PHP4,380 per square meter.

Figure 5 shows the number and value of non-residential constructions by type in 2016.

TECHNICAL NOTES

CONSTRUCTION STATISTICS FROM APPROVED BUILDING PERMITS

Introduction

This Special Release presents the final data on construction statistics from approved building permits for the year 2016.

The final data set provides updates to the 2016 Quarterly Special Releases on construction statistics. The sources of updates are additional approved building permits collected after cut-off dates because of data collection constraints. These additional documents were not yet available for inclusion in the quarterly tabulation of data on designated target dates.

For this publication, data for the province of Sulu from the Autonomous Region in Muslim Mindanao (ARMM) is not included in the tabulation as this province did not submit any approved building permit and/or certification of no construction during the reference year.

Annual final tables are presented in Tables 1 to 7, while quarterly final tables are presented in Tables 8 to 11. Data from the newly created Negros Island Region, comprising the province of Negros Occidental and Negros Oriental, are also included in this publication.

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.

Sources of Information

Construction statistics are compiled by the Philippine Statistics Authority (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 Local Building Officials (LBOs) nationwide.

Limitations of Data

1.    Data on building constructions refer to those approved applications 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, 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) as of December 2016. The PSGC is a systematic classification and coding of geographic areas of the Philippines. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines.

Industry Classification

Construction statistics utilizes the 2009 Philippine Standard Industrial Classification to identify the industrial classification of the structure proposed for construction through its use or character of occupancy.

Collection

The number of building permit forms accomplished by the applicant comes in five (5) copies. The “NSO copy” of the approved building permit is made available within the first five (5) working days after each reference month. Collections of these documents from the LBO in city/municipality are undertaken by PSA field personnel within this period.

Collected documents for each month are properly checked as to its completeness by verifying the beginning and ending numbers indicated in the permit numbers. Missing numbers are indicated, with corresponding reasons, in the transmittal. In cases where there is no construction in a given month in a municipality, a certification that there was no approved building permit during the reference period is provided by the LBO to the PSA field staff.

Data Processing

Copies of documents collected from the offices of LBOs are properly controlled, sorted, edited and coded, folioed and encoded in the PSA provincial offices. Collected approved building permits undergo manual and machine processing both at the Central Office (CO) and Field Office (FO). The collected documents are kept at the FO while data files are forwarded to CO.

Manual processing includes receipt and control, editing and coding while machine processing includes data encoding, data merging, data validation and generation of statistical tables. Both the CO and FO utilize the Building Permit Computer System (BPCS) for machine processing of documents. The CO is responsible for validation, consolidation and generation of preliminary tables. During machine validation, inconsistent and invalid entries which are flagged in an error listing are corrected in the data file.

Data files received after the cut-off dates of submission set for each quarter are included in the generation of annual tables. Preliminary results are based from data files that have undergone data processing in the provincial offices and have been validated at the Central Office. The preliminary tables are revised to include building permit documents received after the cut-off period in the annual tabulation.

Statistics Generated

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

• number
• floor area
• type of construction
• value of construction

Statistical Tables

The statistical tables are presented at the regional and provincial levels by type of construction and by period according to form of ownership. 

Unpublished Data

Aside from the preliminary tables posted in the PSA website, annual, quarterly and monthly statistical tables at the municipality level by type of construction and by form of ownership are available at the Industry Statistics Division of the PSA.

Other special tabulations may also be made available upon request, addressed to the Undersecretary, National Statistician and Civil Registrar General, Philippine Statistics Authority, 2^nd Floor PSA-Tam Building PSA Complex, East Avenue, Diliman, Quezon City.

Dissemination

Preliminary and final results of construction statistics generated from approved building permits are made public in the form of Quarterly Special Releases posted in the PSA website (www.psa.gov.ph) 60 days after the reference quarter and Annual Special Release, eight months after the reference year, respectively. The Quarterly Special Releases are reports containing the preliminary results of construction statistics generated 60 days after the reference quarter while the Annual Special Release is a consolidated report of the quarterly preliminary data incorporating documents which are submitted after the cut-off dates for each quarter.

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, an 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 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 all 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, hospitals.

Agricultural buildings are buildings 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.

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 the value, quality and to improve the aesthetic.

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.