Number of approved building permit applications increases by 18.3 percent

1. Approved building permits nationwide reached 26,992 during the third quarter of 2009. This was 18.3 percent higher compared with 22,817 applications recorded during the same period of 2008. 
    

2. An increase in applications of 22.0 percent was recorded for residential building construction with 20,734 approved building permits compared with 16,997 reported during the same quarter of 2008. Likewise, non-residential building constructions posted an increment of 9.2 percent to 2,905 from 2,660 approved building permits during the same quarter of 2008. 
    

3. Furthermore, combined approved building permits for additions, alterations and repairs grew by 6.1 percent to 3,353 from 3,160 approved building permits recorded during the same quarter of 2008.Figure 1 compares the number of approved building permits by type of building for the third quarters of 2008 and 2009. 
    

   
    

4. At the regional level, CALABARZON (Region IVA) recorded the highest number of approved building permits with 6,177 applications or 22.9 percent of the total. This was followed by Central Luzon (Region III) with 4,859 applications (18.0%). National Capital Region (NCR) placed third with 3,238 applications representing 12.0 percent of the total. Figure 2 shows the regional distribution of approved building permit applications. 
    

5. Seven provinces that registered approved building permits exceeding a thousand mark were: Bulacan (1,069), Pampanga (2,884), Batangas (1,107), Cavite (2,245), Laguna (1,622), Cebu (1,874) and Davao del Sur (1,336). 
    

    
    

   Total value of construction grows by 12.0 percent 
    

6. Aggregate value of construction estimated at Php34.58 billion during the third quarter of 2009 billion grew by 12.0 percent from Php30.87 billion reported during the same quarter of 2008. 
    

7. Value of residential building construction, amounting to Php17.61 billion, increased slightly by 2.1 percent from Php17.25 billion during the same period of 2008. 
    

8. Value of non-residential building construction, amounting to Php14.32 billion, surged by 41.3 percent from Php10.14 billion recorded during the same quarter of 2008. 
    

9. On the other hand, combined value for additions, alterations and repairs, estimated at Php2.64 billion, fell by 24.0 percent from Php3.48 billion registered during the same quarter of 2008. Figure 3 compares the aggregate value of construction by type of building for the third quarters of 2008 and 2009. 
    

   
    

10. Value of construction during the third quarter of 2009 for the National Capital Region (NCR) was highest at Php13.30 billion among the regions in the country, accounting for 38.5 percent share of the total value. CALABARZON (Region IVA) and Davao Region (Region XI) ranked a far second and third with shares of 12.7 percent (Php4.40 billion) and 9.9 percent (Php3.42 billion), respectively. 
     

    Average cost per square meter of residential building construction is Php8,003 
     

11. Total value of construction for residential buildings reached Php17.61 billion with a total floor area of 2.2 million square meters, translating to an average cost of Php8,003 per square meter. 
     

12. Single residential units, consisting of 15,347 approved permits, topped all types of residential building constructions with 74.0 percent of the total. This type of residential building constructions had a total value of construction amounting to Php10.92 billion covering a total floor area of 1.5 million square meters or an average cost of Php7,055 per square meter. 
     

13. Apartment/Accessoria ranked second with 4,858 approved building permits representing 23.4 percent of total residential construction. This type of residential building construction had an estimated construction value of Php2.93 billion with a total floor area of 441.5 thousand square meters or an average cost of Php6.639 per square meter. Figure 4 displays the number and value of residential building construction by type for the third quarter of 2009. 
     

     
     

    Average cost per square meter of non-residential building construction is Php8,797 
     

14. Value of non-residential building construction during the third quarter of 2009 was estimated at Php14.32 billion pesos with a total floor area of 1.6 million square meters or an average cost of Php8,797 per square meter. 
     

15. Commercial type units recorded the highest number of non-residential building construction with 1,716 approved building permits (59.1%). Value of construction for this type was estimated at Php10.06 billion covering a total floor area of 1.1 million square meters or an average cost of Php9,383 per square meter. 
     

16. Institutional building construction, followed a far second with 517 approved building permits (17.8%), construction value of Php2.36 billion and a total floor area of 272.3 thousand square meters or an average cost of Php8,618 per square meter. 
     

17. Agricultural type of non-residential building construction, recorded the least number with 113 or 3.9 percent of the total. Construction value was estimated at Php0.17 billion covering a total floor area of 73.7 thousand square meters, translating to an average cost of Php2,313 per square meter. Figure 5 shows the number and value of non-residential building construction by type for the third quarter of 2009.

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 Camarines Norte, Sulu and Apayao are not included in the tabulation as these provinces did not submit building permit documents and certification of no construction before 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 Office 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 and presented 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 - A 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, 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 - All on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities and equipment of buildings/structures.

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 or household, i.e. bungalow, 2-storey house, nipa hut.

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.

Commercial Buildings - 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 - All buildings which are 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 - All buildings which are 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 - All buildings which are used to house livestocks, plants and agricultural products such as barn, poultry house, piggeries, stables, greenhouses and grain mill.

Other Non Buildings Constructions - These include cemetery structures, street furnitures, waiting sheds, communication towers, etc.

Addition - Any new construction which increases the height or area of an existing building/structure.

Alteration - Construction in a building/structure involving changes in the materials used, partitioning, location/size of openings, structural parts, existing utilities and equipment but does not increase the overall area thereof.

Repair - remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

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