Building Permit Applications Reached 1.13 Million in 22 Years

1.     The generation of construction statistics from building permit in the country started in 1977. For the past 22 years, from 1977 to 1998, the total number of approved building permits received in the entire county reached 1.13 million. This translates to an average of 13,000 building permit applications a quarter, with the highest number of 31,411 applications received in the 3^rd quarter of 1997. Table 1-presents the number, floor area and value of building constructions by type of building by quarter.

2.     From 1977 to 1993, the total number of building permits applications per quarter ranged between 5,000 to less than 15,000. During this period, the highest number of building permit applications so far received was 14,152 in the 1^st quarter of 1993. The corresponding value of construction was placed at P8.76 billion.

3.     Construction activities started to perk up beginning the 1^st quarter of 1994 as the number of building permit applications received was recorded at 16,851 with construction value of P12.68 billion. The increased construction activities continued until the 3^rd quarter of 1997 with 31,411 building permit applications received and construction value reaching an all-time high of P37.05 billion. The period, from 1994 to 1997, is considered the boom years for the construction industry. Figure 1 & 2 present the total number and value of construction by quarter from 1977 to 1998, respectively.

4.     During the 4^th quarter of 1997, as the country was caught up with the Asean financial crisis, construction activities started to decline. Although there were 31,322 building permit applications during this quarter, the estimated value of construction was placed at P22.6 billion.

5.     Of the total 1.13 million applications, 287,051 or 25 percent were received from the National Capital Region. The figures indicate that construction activities were concentrated in the country's premier region. Table 2 presents statistics on cumulative total, number, floor area and value of constructions by region and province from 1977 to 1998.

6.     Outside Metropolitan Manila, the provinces that received the highest number of building permit applications were Cavite (70,1164), Davao del Sur (62,987), Cebu (50,198), Rizal (49,427), Bulacan (44,943), and Laguna (43,5597). Cavite, Rizal and Laguna are part of the CALABARZON group, an area south of the capital region, which is being developed into residential, industrial and recreational complex. On the other hand, Davao del Sur is a key province in the East Asian Growth Area, which is currently being developed as center of economic activities in the Southern Philippines and neighboring South East Asian countries.

Bulk of Building Permit Applications were for Residential Buildings

7.     Since 1977, the number of building permit applications for residential type of construction accounted for more than 50 percent of the total number of applications. The highest proportion of 79 percent and an estimated construction value of P8.01 billion was recorded in the 4^th quarter of 1997.

8.     The proportion of building permits applications for non-residential type of building ranged from 8 to 18 percent while those for additions, alterations and repairs, 13 to 39 percent.