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Construction Statistics from Approved Building Permits for Third Quarter 2015 (Preliminary Results)

Release Date:
Reference Number: 2015-068
 
 
 

TABLE A  Comparative Construction Statistics

 Third Quarter, 2015 and 2014

(Details may not add-up to total due to rounding)

Type of Construction

     Third Quarter 2015
(July - September)

Third Quarter 2014
(July - September)

TOTAL

 

 

Number

30,126

29,616

Floor Area (sq.m.)

6,598,875

8,194,670

Value (PHP '000)

80,198,524

140,712,213

Residential

   

Number

22,562

20,602

Floor Area (sq.m.)

3,781,025

3,706,670

Value (PHP '000)

41,132,631

44,235,274

Non-Residential

   

Number

3,647

3,832

Floor Area (sq.m.)

3,070,046

4,132,524

Value (PHP '000)

34,252,647

88,494,387

Addition

   

Number

983

1,333

Floor Area (sq.m.)

107,804

355,476

Value (PHP '000)

902,384

2,626,991

Alteration and Repair

   

Number

2,934

3,849

Value (PHP '000)

3,910,861

5,355,559

 

Number of constructions posts 1.7 percent growth in third quarter

  1. Total number of constructions generated from approved building permits in the third quarter of 2015 was recorded at 30,126. This represents a slight increase of 1.7 percent compared with the 29,616 constructions recorded during the same quarter in 2014.
  1. The number of residential constructions rose 9.5 percent to 22,562 from 20,602 projects reported during the same period of 2014. This was brought about by the two-digit increase (41.6%) in the construction of duplex/quadruplex-type dwellings. Other types of residential constructions that showed increments in number were single-type houses (8.8%) and apartment/accessoria-type buildings (3.3%).
  1. On the other hand, non-residential constructions numbering to 3,647 declined by 4.8 percent from 3,832 projects reported during the same period last year. The decrease in the number of projects was mainly influenced by the reduction in the construction of commercial buildings (-15.1%), pulling down the increases in number exhibited by all other types of non-residential constructions.
  1. Addition to existing structures decreased 26.3 percent to 983 from 1,333 projects recorded during the same period of 2014. Alteration and repair of existing structures with 2,934 projects fell 23.8 percent compared to 3,849 projects in 2014. Figure 1 compares the number of constructions by type for the third quarters of 2015 and 2014.
 
 
 
 
  1. The top five regions in terms of the number constructions accounted for 61.2 percent of the total, led by Region IVA (CALABARZON) where a total of 6,950 projects (23.1%) were located. This was followed by Region III (Central Luzon) with 3,386 projects (11.2%). Region VII (Central Visayas) recorded the most number of constructions in the Visayas area with 3,194 projects (10.6%). National Capital Region (NCR) with 2,972 projects (9.9%) and Region VI (Western Visayas) with 1,943 projects (6.4%), ranked fourth and fifth, respectively.
  1. Western Visayas, ranking eighth in the same period last year, occupied the fifth slot in 2015 displacing Davao Region in the top five. Figure 2 shows the distribution of constructions by region.
 
 
 
 
  1. The top ten provinces comprised 44.4 percent of the total number of constructions. Cavite remained highest with 3,082 constructions (10.2%). Ranking closely for the second and third spots were Cebu and Bulacan with respective shares of 1,470 (4.9%) and 1,450 (4.8%) constructions. Completing the top ten provinces with the most number of constructions were as follows:
  • Laguna with 1,350 constructions (4.5%)
  • Leyte with 1,190 constructions (4.0%)
  • Batangas with 1,158 constructions (3.8%)
  • Bohol with 1,016 constructions (3.4%)
  • Rizal with 916 constructions (3.0%)
  • Misamis Oriental with 882 constructions (2.9%)
  • Pampanga with 854 constructions (2.8%)
  1. Among the top ten provinces, Cebu recorded the highest increase (126.9%) in the number of constructions from the 648 projects reported during the same period in 2014. This was attributed to the three-digit growth (201.6%) in the construction of single-type houses in the province.

 

Total value of non-residential constructions slumps by 61.3 percent

  1. In spite of the 1.7 percent increase in the number of constructions, total value of constructions estimated at PHP80.2 billion dropped by 43.0 percent from PHP140.7 billion recorded during the third quarter of 2014.
  1. Value of residential constructions fell by 7.0 percent to PHP41.1 billion from PHP44.2 billion recorded during the same quarter of 2014, influenced by the drop in the construction value of residential condominium (-20.8%) and other types of residential buildings (-35.8%).
  1. Value of non-residential constructions slumped by 61.3 percent to PHP34.3 billion from PHP88.5 billion registered during the third quarter of 2014. This was largely contributed by the decline in the construction value of commercial buildings (-71.7%) particularly the 99.6 percent drop in the construction value of hotel/motel buildings to PHP0.2 billion from PHP56.5 billion in NCR Sixth District.
  1. Similarly, construction value of addition to existing structures amounting to PHP0.9 billion contracted by 65.6 percent from PHP2.6 billion recorded during the same period in 2014. Alteration and repair of existing structures valued at PHP3.9 billion dropped by 27.0 percent compared with PHP5.4 billion in 2014. Figure 3 compares the value of constructions by type for the third quarters of 2015 and 2014.
 
 
 
 
  1. The top 5 regions in the number of constructions were also the top five in terms of the value of constructions with a combined amount of PHP66.7 billion or 83.2 percent of the total. NCR, ranking fourth in the number of constructions, consistently remained highest with construction value of PHP37.2 billion accounting for 46.4 percent of the total. This was distantly followed by CALABARZON with construction value of PHP12.2 billion (15.2%) and Western Visayas with PHP8.0 billion (10.0%). Central Luzon with construction value of PHP4.9 billion (6.2%) and Central Visayas with PHP4.4 billion (5.5%), placed fourth and fifth, respectively.

 

Average cost of residential-type building is PHP10,879 per square meter

  1. Total value of residential constructions for the third quarter of 2015 was estimated at PHP41.1 billion with a total floor area of 3.8 million square meters. This reflects an average cost of PHP10,879 per square meter, lower by 8.8 percent compared with previous year’s average cost of PHP11,934 per square meter. This was primarily brought about by the 10.2 percent drop in the average cost per square meter of residential condominiums.
  1. Among residential constructions, single-type houses recorded the most number of projects with 18,678 accounting for 82.8 percent of the total. Total value of construction for this type amounted to PHP16.8 billion covering a total floor area of 1.9 million square meters or an average cost of PHP8,709 per square meter.
  1. Apartment/accessoria-type units ranked a far second with 2,444 projects or 10.8 percent of the total residential construction. This type of construction valued at PHP4.9 billion had a total floor area of 657.9 thousand square meters or an average cost of PHP7,517 per square meter.
  1. Duplex/quadruplex-type dwellings came next with 1,368 projects or 6.1 percent of the total residential construction. Construction value for this type amounted to PHP1.1 billion with a total floor area of 124.8 thousand square meters or an average cost of PHP8,647 per square meter.
  1. Residential condominiums numbering to only 38 had construction value of PHP18.2 billion and total floor area of 1.1 million square meters, translating to an average cost of PHP17,206 per square meter. Figure 4 displays the number and value of residential constructions by type for the third quarter of 2015.
 
 
 
 

Average cost of non-residential construction is PHP11,157 per square meter

  1. Total value of non-residential constructions for the third quarter of 2015 summed-up to PHP34.3 billion with a total floor area of 3.1 million square meters. This translates to an average cost of PHP11,157 per square meter, a decline of 47.9 percent compared to a year ago average cost of PHP21,414 per square meter.  The drop in the average cost was contributed by the decline in the average cost per square meter of commercial (-57.8%), industrial (-11.1%) and other types of non-residential constructions (-75.1%).
  1. Commercial-type buildings dominated all other types of non-residential constructions with 2,072 projects or 56.8 percent of the total. Construction value for this type amounted to PHP21.7 billion with a total floor area of 1.9 million square meters or an average cost of PHP11,729 per square meter.
  1. Institutional-type buildings came next with 812 projects (22.3%), construction value of PHP7.0 billion and total floor area of 542.3 thousand square meters, translating to an average cost of PHP12,827 per square meter. 
  1. Industrial-type buildings ranked third with 439 projects (12.0%). Total construction value for this type was estimated at PHP4.9 billion with total floor area of 530.0 thousand square meters or an average cost PHP9,186 per square meter. 
  1. Agricultural-type buildings made up of 189 projects or 5.2 percent of the total non-residential construction. Construction value for this type was PHP0.6 billion with total floor area of 145.4 thousand square meters or an average cost of PHP4,077 per square meter. Figure 5 shows the number and value of non-residential constructions by type for the third quarter of 2015.
 
 
 
 
 
 

TECHNICAL NOTES

CONSTRUCTION STATISTICS FROM APPROVED BUILDING PERMITS

 
 
 

Introduction

This Special Release presents the preliminary data on construction statistics from approved building permits for the third quarter of 2015, generated 60 calendar days after the reference quarter.

For this publication, data for the provinces of Apayao, Occidental Mindoro, Basilan (except Isabela City), Lanao Del Sur, Sulu, and Tawi-Tawi are not included in the tabulation as these provinces did not submit any building permit document and/or certification of no approved building permit before the generation of preliminary tables. However, if any, these are to be included in the annual tabulation.

Data are presented at the provincial level by type of construction in Tables 1 to 7.  Beginning with the third quarter of 2015, data on institutional and agricultural constructions are included in this publication and presented in Tables 6 and 7, respectively.

 

Scope and Coverage

Construction statistics from approved building permits relate to administrative-based data on new constructions and additions, alterations and repairs of existing residential and non-residential buildings and other structures proposed to be constructed in all cities and municipalities of the country in a specific period.

 

Sources of Information

Construction statistics are compiled by the Philippine Statistics Authority from the copies of original application forms of approved building permits as well as from the demolition and fencing permits collected every month by PSA field personnel from the Offices of Local Building Officials (LBOs) nationwide.

 

Limitations

  1. Data on building constructions refer to those approved applications 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

Building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2014. The PSGC contains the latest updates on the official number of regions, provinces, cities, municipalities and barangays in the Philippines.

 

Industry Classification

Construction statistics utilizes the 2009 Philippine Standard Industrial Classification (PSIC) to identify the industrial classification of the structure proposed for construction through its use or character of occupancy.

 

Collection

The number of building permit forms accomplished by the applicant comes in five (5) copies. The “NSO copy” of the approved building permit is made available within the first five (5) working days after each reference month. Collections of these documents from the LBO in city/municipality are undertaken by PSA field personnel within this period.

Collected documents for each month are properly checked as to its completeness by verifying the beginning and ending numbers indicated in the permit numbers. Missing numbers are indicated, with corresponding reasons, in the transmittal. In cases where there is no construction in a given month in a municipality, a certification that there was no approved building permit during the reference period is provided by the LBO to the PSA field staff.

 

Data Processing

Data processing of approved building permits is done both manually and mechanically. Copies of documents collected from the offices of LBOs are properly controlled, sorted, edited and coded, folioed and encoded in the PSA provincial offices. During machine validation, inconsistent and invalid entries which are flagged in an error listing are corrected in the data file. This process is repeated until there are no more inconsistent or erroneous entries found in the error listing. The data files are then forwarded to PSA Central Office for validation, consolidation and generation of preliminary tables. Data files received after the cut-off dates of submission set for each quarter are included in the generation of annual tables.

Preliminary results are based from data files that have undergone data processing in the provincial offices and have been validated at the Central Office. The preliminary tables are revised to include building permit documents received after the cut-off period in the annual tabulation.

 

Statistics Generated

Construction statistics generated from approved building permits provide monthly administrative-based data on building construction at the municipality level nationwide. Statistics generated are the following:

  • number
  • floor area
  • type of construction
  • value of construction

 

Statistical Tables

The statistical tables are presented at the regional and provincial levels by type of construction and by period according to form of ownership. 

 

Unpublished Data

Aside from the preliminary tables posted in the PSA website, annual, quarterly and monthly statistical tables at the municipality level by type of construction and by form of ownership are available at the Industry Statistics Division of the PSA.

Other special tabulations may also be made available upon request, addressed to the National Statistician, Philippine Statistics Authority, 3rd Floor CVEA Building, East Avenue, Quezon City.

 

Dissemination

Preliminary and final results of construction statistics generated from approved building permits are made public in the form of Quarterly Special Releases posted in the PSA website (www.psa.gov.ph) 65 calendar days after the reference quarter and Annual Special Release, eight months after the reference year, respectively. The Quarterly Special Releases are reports containing the preliminary results of construction statistics generated 60 days after the reference quarter while the Annual Special Release is a consolidated report of the quarterly preliminary data incorporating documents which are submitted after the cut-off dates for each quarter.

 

Definition of Terms (Adopted from the Revised and Updated IRR of the National Building Code)

Building permit is a written authorization granted by the 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 all on-site work done from site preparation, excavation, foundation, assembly of all the components and installation of utilities, machineries 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 house 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 construction consists 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 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 all 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 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 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.

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

Renovation is any physical change made on structures to increase the value, quality and to improve the aesthetic.

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.

Conversion is a change in the use or occupancy of structure or any portion thereof, which has different requirements.

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