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Construction Statistics from Approved Building Permits : Third Quarter 2012 (Preliminary Results)

Release Date:
Reference Number: 2012-777

 

Number of construction projects grows by 8.2 percent

 

A total count of 27,323 new construction projects from approved building permits in the country were reported for the third quarter of 2012. This number grew 8.2 percent compared to 25,255 construction projects over the same quarter in 2011.

Residential-type building with 19,523 new constructions went up by 7.5 percent from 18,154 during the same period of 2011. Likewise, non-residential constructions rose by 9.2 percent from 3,377 to 3,688 during the same period of last year.

Furthermore, additions, alterations and repairs of existing structures aggregating to 4,112 increased by 10.4 percent from 3,724 constructions recorded during the same quarter of 2011. Figure 1 compares the number of new construction projects by type of construction for the third quarters of 2011 and 2012.

 

 

Among the regions, CALABARZON (Region IVA) recorded the highest number of new building construction projects with 6,378 or 23.3 percent of the total. Central Visayas (Region VII) ranked second with 3,407 construction projects or 12.5 percent of the total, followed by National Capital Region (NCR) with 3,320 constructions (12.2%). Central Luzon (Region III) and Davao (Region XI), ranked fourth and fifth with 2,543 (9.3%) and 2,222 (8.1%) construction projects, respectively. Figure 2 shows the regional distribution of construction projects for the third quarter of 2012.

 

 

At the provincial level, Cavite reported the biggest share to total construction with 2,577 construction projects or 9.4 percent of the total construction during the third quarter of 2012. Other provinces exceeding a thousand mark were Cebu with 1,698 (6.2%), Davao del Sur, 1,411 (5.2%), Laguna, 1,378 (5.0%), and Batangas, 1,212 (4.4%).

 

Value of construction rises 54.5 percent

 

Total value of construction projects during the third quarter of 2012 rose 54.5 percent to PHP64.3 billion from PHP41.6 billion recorded during the third quarter of 2011.

Value of new residential building constructions posted an increase of 54.1 percent amounting to PHP31.3 billion from PHP20.3 billion during the same quarter of 2011.

Similarly, value of new non-residential building constructions soared 99.2 percent amounting to PHP28.2 billion from PHP14.2 billion registered during the third quarter of 2011.

Moreover, combined value for additions, alterations and repairs of existing structures, estimated at PHP4.8 billion, declined by 32.6 percent from PHP7.2 billion registered during the same period of 2011. Figure 3 compares the value of construction by type of building for the third quarters of 2011 and 2012.

 

 

Regionwise, value of construction for NCR consistently remained highest at PHP29.7 billion, accounting for 46.1 percent share of the total value. CALABARZON (Region IVA), and Central Visayas (Region VII) ranked a far second and third with respective shares of 13.2 percent (PHP8.5 billion) and 12.0 percent (PHP7.7 billion). This was followed by Central Luzon (Region III) and Davao (Region XI) with construction value of PHP4.1 billion and PHP3.8 billion, respectively.

 

Average cost of residential construction is PHP9,567 per square meter

 

Total value of residential building construction reached PHP31.3 billion with a total floor area of 3.3 million square meters, translating to an average cost of PHP9,567 per square meter.

Single-type residential units recorded the most number of residential building constructions with 16,706 or 85.6 percent of the total. Total value of construction for this type amounted to PHP13.0 billion covering a total floor area of 1.6 million square meters translating to an average cost of PHP8,131 per square meter.

Apartment/accessoria followed next with 2,217 constructions or 11.4 percent of total residential construction. This type of residential construction had an estimated construction value of PHP5.0 billion with total floor area of 704.0 thousand square meters or an average cost of PHP7,075 per square meter. Figure 4 displays the percentage distribution of the number and value of new residential building construction by type for the third quarter of 2012.

 

 

 

Average cost of non-residential construction is PHP9,600 per square meter

 

During the third quarter of 2012, total value of non-residential construction was estimated at PHP28.2 billion pesos with a total floor area of 2.9 million square meters. This translates to an average cost of PHP9,600 per square meter.

Commercial type building dominated all other types of non-residential construction with 2,174 or 58.9 percent of the total. Total value of construction for this type was estimated at PHP20.1 billion covering a total floor area of 2.0 million square meters or an average cost of PHP10,108 per square meter.

Institutional building construction, which ranked a far second, had 620 projects or 16.8 percent of the total non-residential construction, with construction value of PHP4.8 billion and a total floor area of 467.8 thousand square meters or an average cost of PHP10,204 per square meter. 

The least number of non-residential constructions was reported for agricultural type with 134 or 3.6 percent of the total. Construction value for this type was estimated at PHP0.5 billion covering a total floor area of 118.4 thousand square meters, reflecting an average cost of PHP4,574 per square meter. Figure 5 shows the number and value of new non-residential constructions by type for the third quarter of 2012.

 

 

 

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 in a specific period.

For this publication, data for the provinces of Basilan (excluding Isabela City), Lanao del Sur, Sulu and Tawi-tawi, all from the Autonomous Region in Muslim Minandanao (ARMM) are not included in the tabulation as these provinces did not submit building permit documents and certification of no construction before the generation of preliminary tables. 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.
  1. The completeness of the number of building permits collected relies on the approval of applications filed with the 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 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-Building Constructions – These include cemetery structures, street furniture, 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.