New construction projects grow by 13.5 percent 

The reported total number of new construction projects from approved building permits nationwide reached 27,931 during the fourth quarter of 2012. This number represents a 13.5 percent increase compared to 24,610 construction projects recorded in same quarter of 2011.

Residential-type building projects climbed 15.9 percent to 20,218 from 17,451 during the same period of 2011. On the other hand, non-residential constructions slightly dropped by 0.8 percent to 3,379 from 3,407 during the same period of last year.

Furthermore, additions, alterations and repairs of existing structures aggregating to 4,334 rose by 15.5 percent from 3,752 constructions recorded during the same quarter of 2011. Figure 1 compares the number of new construction projects by type of construction for the fourth quarters of 2011 and 2012.

Among the regions, CALABARZON (Region IVA) recorded the highest number of new construction projects with 7,361 or 26.4 percent of the total. National Capital Region (NCR) ranked second with 3,423 construction projects or 12.3 percent of the total, followed by Central Luzon (Region III) with 2,675 (9.6%) constructions. Central Visayas (Region VII) and Northern Mindanao (Region X), ranked fourth and fifth with 2,650 (9.5%) and 1,981 (7.1%) construction projects, respectively. Figure 2 shows the regional distribution of new construction projects for the fourth quarter of 2012.

By province, majority of construction projects was located in Cavite with 4,052 or 14.5 percent of the total construction during the fourth quarter of 2012. Other provinces exceeding a thousand mark were Laguna with 1,165 (4.2%), Cebu, 1,085 (3.9%), Davao del Sur, 1,082 (3.9%), and Bulacan, 1,037 (3.7%).

Value of Construction rises by 53.1 percent

Total value of construction projects during the fourth quarter of 2012 reached PHP67.0 billion, posting a double-digit increment of 53.1 percent compared to PHP43.8 billion during the same quarter of 2011.

Value of construction for new residential building constructions valued at PHP38.3 billion significantly grew by 57.6 percent compared to PHP24.3 billion reported during the same period of 2011.

Similarly, value of construction for new non-residential building constructions soared 48.1 percent amounting to PHP23.2 billion from PHP15.7 billion during the fourth quarter of 2011.

Moreover, combined value for additions, alterations and repairs of existing structures, estimated at PHP5.5 billion, went up by 44.8 percent from PHP3.9 billion during the same period of 2011. Figure 3 compares the value of construction by type of building for the fourth quarters of 2011 and 2012.

At the regional level, more than half (52.6%) of the total value of construction was spent in NCR at PHP35.2 billion. Region IVA and Region III ranked a far second and third, with respective shares of 12.1 percent (PHP8.1 billion) and 8.0 percent (PHP5.4 billion). This was followed by Region VII and Region XI with construction value of PHP3.9 billion and PHP2.5 billion, respectively.

Average cost of residential construction is PHP9,816 per square meter

Total value of residential building construction reached PHP38.3 billion with a total floor area of 3.9 million square meters, translating to an average cost of PHP9,816 per square meter.

Single-type residential units recorded the most number of construction projects with 17,634 or 87.2 percent of the total. Value of construction for this type amounted to PHP13.5 billion covering a total floor area of 1.7 million square meters translating to an average cost of PHP8,043 per square meter.

Apartment/accessoria-type residential dwelling units numbered to 2,215 or 11.0 percent of the total residential construction. This type had an estimated construction value of PHP4.5 billion with total floor area of 659.5 thousand square meters or an average cost of PHP6,862 per square meter. Figure 4 displays the percentage distribution of the number and value of new residential building construction by type for the fourth quarter of 2012.

Average cost of non-residential construction is PHP9,589 per square meter

During the fourth quarter of 2012, total value of non-residential construction was estimated at PHP23.2 billion pesos with a total floor area of 2.4 million square meters. This translates to an average cost of PHP9,589 per square meter.

Commercial-type dominated all other types of non-residential building construction with 1,919 or 56.8 percent of the total. Value of construction for this type was estimated at PHP14.7 billion covering a total floor area of 1.5 million square meters or an average cost of PHP9,527 per square meter.

Institutional building construction ranked a far second with 632 projects (18.7%), construction value of PHP4.7 billion and a total floor area of 387.7 thousand square meters or an average cost of PHP12,107 per square meter.

The least number of non-residential constructions was reported for agricultural type with 170 or 5.0 percent of the total. Construction value for this type was estimated at PHP0.5 billion covering a total floor area of 114.6 thousand square meters, reflecting an average cost of PHP4,641 per square meter. Figure 5 shows the number and value of new non-residential constructions by type for the fourth 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), Sulu and Tawi-Tawi, all from the Autonomous Region in Muslim Mindanao (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.

2. 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 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 is 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 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 Building includes commercial, industrial, agricultural and institutional buildings.

Commercial Building includes 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 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 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 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 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 refers to construction in a 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 refers to remedial work done on any damaged or deteriorated portion/s of a structure to restore its original condition.

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