Number of new construction increases by 5.4 percent

1. A total count of 25,255 new construction projects from approved building permits in the country were reported for the third quarter of 2011. This number registered an increase of 5.4 percent compared to 23,970 construction projects over the same period in 2010. 
    

2. Residential type building recorded a total of 18,154 in the third quarter of 2011. This reflects a 3.0 percent growth from the third quarter of 2010 with 17,618 residential constructions. Likewise, non-residential construction for the period grew 7.6 percent to 3,377 from 3,138 during the same quarter of 2010. 
    

3. Approved applications for additions, alterations and repairs of existing structures with a combined total of 3,724 increased by 15.9 percent from 3,214 approved applications recorded during the same quarter of 2010. Figure 1 compares the number of new construction projects for the third quarters of 2010 and 2011. 
    

    
    

4. At the regional level, the most number of construction projects were located in the following: 
    

   • CALABARZON with 5,516, (21.8%)
   • Central Luzon with 2,972, (11.8%)
   • National Capital Region (NCR) with 2,923, (11.6%)
   • Davao Region with 2,699, (10.7%)
   • Central Visayas with 2,449, (9.7%).

    

5. For areas outside NCR, seven provinces listed below contributed the biggest share in terms of the number of construction projects during the third quarter 2011. These provinces recorded number of construction projects exceeding a thousand mark: 
    

   • Cavite with 1,869, (7.4%)
   • Davao del Sur with 1,704, (6.7%)
   • Bulacan with 1,334, (5.3%)
   • Laguna with 1,132, (4.5%)
   • Cebu with 1,071, (4.2%)
   • Batangas with 1,031, (4.1%)
   • Rizal with 1,005, (4.0%).

     Figure 2 displays the distribution of new construction projects by region: 
    

    
    

   Value of construction projects contracts by 10.0 percent 
    

6. Aggregate value of construction projects during the third quarter of 2011 decreased 10.0 percent to PHP41.6 billion from PHP46.3 billion posted during the same quarter of 2010. 
    

7. Value of construction for residential type building exhibited a decrease of 17.4 percent to PHP20.3 billion from PHP24.6 billion during the same period of 2010. 
    

8. Similarly, value for non-residential building construction, fell by 21.6 percent to PHP14.2 billion from PHP18.1 billion registered during the same quarter of 2010. 
    

9. However, combined value of construction for additions, alterations and repairs of existing structures, estimated at PHP7.2 billion, significantly rose 97.0 percent from PHP3.6 billion registered during the same period of 2010. Figure 3 compares the aggregate value of construction by type of building for the third quarters of 2010 and 2011. 
    

   

    

10. Across the country, value of construction for the NCR remained highest at PHP13.4 billion, accounting for 32.1 percent share of the total value. CALABARZON and Central Luzon ranked second and third with respective shares of 22.6 percent (PHP9.4 billion) and 9.8 percent (PHP4.1 billion). 
     

    Average cost per square meter of residential building construction is PHP8,554 
     

11. Total value of construction for residential buildings was PHP20.3 billion with a total floor area of 2.4 million square meters, translating to an average cost of PHP8,554 per square meter. This figure represents a slight decrease of 2.9 percent compared with the average cost of PHP8,811 per square meter of the previous year. 
     

12. Comprising about 88.3 percent of the total approved building permits for residential building construction were applications for single type residential units. This type of construction numbered 16,031 projects with a total floor area of 1.6 million square meters and an aggregate value of PHP12.1 billion. This translates to an average cost of PHP7,736 per square meter. 
     

13. Approved building permits for apartment/accessoria reached 1,723 representing 9.5 percent of total residential construction. This type of residential building construction had an estimated construction value of PHP3.5 billion with total floor area of 492.6 thousand square meters or an average cost of PHP7,026 per square meter. 
     

14. Duplex type residential building recorded a total of 305 construction projects or 1.7 percent of the total residential construction. Total value for this type amounted to PHP380.5 million and a total floor area of 49.5 thousand square meters or an average cost of PHP7,684 per square meter. Figure 4 displays the percentage distribution of the number and value of residential building construction by type for the third quarter of 2011. 

    

    Commercial type dominates non-residential building construction with 1,973 projects 
     

15. The total value of non-residential building construction reached PHP14.2 billion with a total floor area of 1.8 million square meters translating to an average cost of PHP7,752 per square meter. 
     

16. More than half (58.4%) of the total approved building permits for non-residential was for commercial building construction with 1,973 applications. Value of construction for this type was estimated at PHP8.0 billion covering a total floor area of 1.0 million square meters or an average cost of PHP7,637 per square meter. 
     

17. Institutional building construction reported a total of 503 construction projects (14.9%) with construction value of PHP3.1 billion and a total floor area of 324.6 thousand square meters or an average cost of PHP9,505 per square meter. 
     

18. One in every ten (10.8%) non-residential projects was for the construction of industrial type building with 364 construction projects. The total value of industrial construction amounted to PHP2.3 billion with a total floor area of 337.5 thousand square meters. This reflects to an average cost of PHP6,868 per square meter. 
     

19. Agricultural type building reported the least number of non-residential construction with 160 or 4.7 percent of the total. Construction value was estimated at PHP522.0 million covering a total floor area of 120.9 thousand square meters, indicating an average cost of PHP4,318 per square meter. Figure 5 shows the number and value of non-residential building construction by type for the third quarter of 2011. 
     

    
     

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 cities/municipalities of the country.

For this publication, data for the provinces of Maguindanao (excluding Cotabato City), Misamis Occidental, Sulu and Tawi-tawi are not included in the tabulation as these provinces did not submit building permit documents and/or certification of no construction before the deadline. However, if any, these are to be included in the annual tabulation.

Source of Information

Construction statistics are compiled by the National Statistics Office (NSO) from the copies of original application forms of approved building permits as well as from the demolition permits collected every month by NSO field personnel from the Offices of Local Building Officials (LBOs) 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 from 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 is 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 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 an 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 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 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 Constructions consist of school or company staff houses, living quarters for drivers and maids, and guardhouses.

Non-residential Buildings include these types of buildings: 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 plant, electric generating plants.

Institutional Buildings are 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 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.

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.

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

Demolitions refer to the systematic dismantling or destruction of a building/structure or in part.

Street Furnitures are street structures consisting of monuments, waiting sheds, benches, plant boxes, lamp posts, electric poles and telephone poles.

Floor Area of the 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.

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 Bldg. II, Ramon Magsaysay Blvd. Sta. Mesa, Manila, Tel No. 716-39-32.

Source:    National Statistics Office
               Manila, Philippines