Residential buildings had the highest number of constructions

The number of constructions from approved building permits February 2024 reached 13,100. This indicates an annual drop of 5.5 percent from 13,859 total number of constructions in the same month of the previous year. The number of constructions in January 2024 declined at an annual rate of 10.3 percent. (Tables A and 1)

By type of construction, residential buildings reported the highest number with 8,345 constructions or 63.7 percent of the total number of constructions during the month. It recorded an annual decrease of 9.4 percent from the same month of the previous year’s level of  9,209 constructions. Majority of the total residential constructions were single-type houses with 7,104 (85.1%). (Figure 1, and Tables A and 1)

Meanwhile, non-residential type of constructions was the second highest in terms of number of constructions at 3,177 or 24.3 percent of the total number of constructions during the month. This type of construction increased during the period at an annual rate of 1.4 percent. Most of the non-residential constructions were commercial buildings with 2,192 constructions (69.0%). (Figure 1, and Tables A and 1)

Addition, which refers to any new construction that increases the height or area of an existing building, and alteration and repair of existing structures contributed 4.2 percent and 7.9 percent to the total number of constructions, respectively. Compared with their respective numbers in the same period of the previous year, addition-type of construction increased by 20.4 percent, while alteration and repair posted an annual drop of 2.8 percent. (Tables A and 1)

Non-residential buildings recorded the highest value of constructions

In February 2024, the total value of constructions amounted to PhP 43.27 billion, reflecting an annual increase of 40.3 percent from PhP 30.84 billion value of constructions posted in the same month of the previous year. (Tables A and 1)

Non-residential building constructions valued at PhP 19.47 billion accounted for 45.0 percent of the total value of constructions during the period. This indicates an increase of 59.4 percent from the PhP 12.21 billion construction value of non-residential buildings recorded in the same month of 2023. Among non-residential constructions, commercial-type building had the highest value of constructions at PhP 9.12 billion (46.9%). (Figure 2a, and Tables A and 1)

On the other hand, the construction value of residential buildings amounted to PhP 19.34 billion or 44.7 percent of the total construction value in February 2024. This reflects an increment of 20.6 percent from PhP 16.03 billion value of constructions of residential buildings reported in the same month of the previous year. Among residential buildings, single-type houses registered the highest value of constructions at PhP 11.47 billion (59.3%). (Figure 2b, and Tables A and 1)

In February 2024, the value of constructions for addition, and alteration and repair to existing structures were recorded at PhP 0.93 billion (2.1%) and PhP 3.52 billion (8.1%), respectively. Compared with their respective values in the same month of the previous year, addition to existing structures recorded an annual expansion of 31.7 percent from 120.6 percent annual increase, while alteration and repair posted an annual increment of 86.2 percent from an annual growth of 17.1 percent. (Tables A and 1)

Non-residential buildings accounted for almost half of the total floor area of constructions

The total floor area of constructions for this month was recorded at 3.61 million square meters. This corresponds to an annual increment of 34.5 percent from the recorded 2.67 million square meters floor area in the same period of the previous year. (Tables A and 1)

Non-residential constructions posted 2.09 million square meters or 57.8 percent of the total floor area of constructions this period. This reflects an annual increase of 68.9 percent from the floor area of 1.24 million square meters in the same month of 2023.

Meanwhile, residential constructions recorded 1.44 million square meters or 39.7 percent of the total floor area of constructions in February 2024. It expanded at an annual rate of 3.7 percent from the previous year’s same month floor area of 1.39 million square meters. (Tables A and 1) 

Residential buildings had the highest average cost of constructions

The average cost of construction in February 2024, excluding those for alteration and repair, and other non-residential, was recorded at PhP 10,899.39 per square meter. This was 1.3 percent higher than the average cost of PhP 10,760.10 per square meter in February 2023. (Table 1)

By type of construction, residential buildings had the highest average cost of PhP 13,468.60 per square meter during the month. This was followed by addition to existing constructions with PhP 10,507.15 per square meter, and non-residential constructions with PhP 9,150.16 per square meter. (Table 1)

Among residential constructions, residential condominium posted the highest average cost of PhP 22,194.61 per square meter during the period, while other residential recorded the lowest average cost of PhP 4,715.39 per square meter. (Figure 4a and Table 1)

Across non-residential constructions, institutional-type buildings reported the highest average cost of PhP 12,796.09 per square meter. On the other hand, agricultural-type buildings registered the lowest average cost of PhP 5,108.29 per square meter. (Figure 4b 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 February of 2024. Data are presented at the regional, provincial and/or Highly Urbanized City (HUC) levels.

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 month of February 2024, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2022.

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

IV.1 Dissemination

Preliminary results of construction statistics are made public in the form of Monthly Special Releases. The Monthly Special Releases are reports containing the preliminary results of construction statistics submitted within the cut-off date, which was 30 days after the reference month. Results are posted 50 days after the reference month in the PSA website. 

Note: The statistical tables are posted at the PSA OpenStat portal at: https://openstat.psa.gov.ph/PXWeb/pxweb/en/DB/DB__2G__CONS__BGP/?tablelist=true&rxid=bdf9d8da-96f1-4100-ae09-18cb3eaeb313

IV.2 Revision

All documents received after the cut-off date, which is 30 days after the reference month, are included in the generation of revised results. The revised data of the previous month are reported during the release of the preliminary report of the current month. Revisions are made for the previous months until the annual report is released six months after the reference year.

V. Citation

Philippine Statistics Authority. (April 2024). 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    
isd.staff@psa.gov.ph

For data request, you may contact the:    
Knowledge Management and Communications Division    
(632) 8462-6600 locals 820 and 823   
info@psa.gov.ph