Approved building permits for all types of construction increase by 9.9 percent

1. Approved building permit applications nationwide summed up to 29,992 during the first quarter of 2010, posting a growth of 9.9 percent from the 27,282 applications received during the same period of 2009. 
    

2. Residential building construction, with 23,586 approved building permits, rose by 20.3 percent from 19,608 during the same quarter of 2009 while non-residential building constructions went down by 28.8 percent to 2,978 from 4,180 during the same period of last year. 
    

3. Furthermore, combined approved building permits for additions, alterations and repairs with a total of 3,428 dropped by 1.9 percent from 3,494 approved building permits recorded during the same quarter of 2009. Figure 1 compares the number of approved building permits by type of construction for the first quarters of 2009 and 2010. 
    

    
    

4. Among the regions, CALABARZON (Region IVA) recorded the highest number of approved building permits with 8,149 applications or 27.2 percent of the total. Central Luzon (Region III) with 6,148 applications (20.5%) ranked second, followed by National Capital Region (NCR) with 3,467 applications representing 11.6 percent of the total. 
    

5. Seven provinces that registered approved building permits exceeding a thousand marks were: Pampanga (3,427), Cavite (3,291), Laguna (2,101), Bulacan (1,760), Cebu (1,263), Rizal (1,199) and Batangas (1,109). Figure 2 shows the regional distribution of approved building permit applications. 
    

    
    

   Value of construction rises by 59.5 percent 
    

6. Total value of construction during the first quarter of 2010 rose 59.5 percent to PhP47.3 billion from PhP29.7 billion recorded during the same quarter of 2009. 
    

7. Similarly, value of residential building construction exhibited an increase of 24.6 percent amounting to PhP21.3 billion from PhP17.1 billion during the same quarter of 2009. 
    

8. Value of non-residential building construction, however, remarkably grew 130.5 percent amounting to PhP22.3 billion from PhP9.7 billion registered during the same quarter of 2009. 
    

9. Moreover, combined value for additions, alterations and repairs, estimated at PhP3.7 billion, rose 27.4 percent from PhP2.9 billion registered during the same period of 2009. Figure 3 compares the aggregate value of construction by type of building for the first quarters of 2009 and 2010. 
    

   

    

10. Across the country, value of construction for the National Capital Region (NCR) had always remained highest at PhP23.4 billion, accounting for 49.4 percent share of the total value. CALABARZON (Region IVA), and Central Luzon (Region III) ranked a far second and third with shares of 16.5 percent (PhP7.8 billion) and 7.8 percent (PhP3.7 billion), respectively. 
     

    Average cost per square meter of residential building construction is PhP8,126 
     

11. Total value of construction for residential buildings reached PhP21.3 billion with a total floor area of 2.6 million square meters, translating to an average cost of PhP8,126 per square meter. 
     

12. Single type residential units with 17,502 approved permits (74.2%) recorded the most number of residential building construction. Total value of construction for this type reached PhP12.5 billion covering a total floor area of 1.7 million square meters translating to an average cost of PhP7,467 per square meter. 
     

13. Apartment/accessoria followed next with 5,598 approved permits representing 23.7 percent of total residential construction. This type of residential building construction had an estimated construction value of PhP3.1 billion with total floor area of 446.8 thousand square meters or an average cost of PhP6,914 per square meter. Figure 4 displays the percentage distribution of the number and value of residential building construction by type for the first quarter of 2010. 
     

    

     

    Average cost per square meter of non-residential building construction is PhP9,471 
     

14. During the first quarter of 2010, value of non-residential building construction was PhP22.3 billion pesos with a total floor area of 2.4 million square meters. This translates to an average cost of PhP9,471 per square meter. 
     

15. Commercial type dominated all other types of non-residential building construction with 1,662 approved building permits (55.8%). Value of construction for this type was estimated at PhP16.6 billion covering a total floor area of 1.5 million square meters or an average cost of PhP11,108 per square meter. 
     

16. Institutional building construction, which ranked a far second, had 471 approved building permits (15.8%), construction value of PhP2.9 billion and a total floor area of 318.9 thousand square meters or an average cost of PhP9,046 per square meter. 
     

17. The least number of non-residential building construction was reported for agricultural type with 160 or 5.4 percent of the total. Construction value was estimated at PhP0.2 billion covering a total floor area of 97.5 thousand square meters, translating to an average cost of PhP2,387 per square meter. Figure 5 shows the number and value of non-residential building construction by type for the first quarter of 2010.

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 Apayao, Kalinga, Misamis Occidental, North Cotabato, Sulu and Zambales 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