Value of construction grows 35.5 percent to P25 billion

1. Total value of construction during the first quarter of 2006 increased by 35.5 percent reaching P25.0 billion from P18.4 billion recorded during the same period of 2005.

2. Value of construction for residential buildings went up by 16.6 percent to P13.1 billion from P11.2 billion compared with the same period of 2005. However, value of construction for non-residential building significantly increased by 85.3 percent to P10.2 billion from P5.5 billion. The rise in the value of non-residential building was attributed to three (3) regions namely: NCR (240.3%), Region 2 (142.3%) and Region 4B (105.1%). In these regions, large commercial buildings made up the bulk of non-residential building construction.

3. Combined value for additions, alterations and repairs amounting to P1.7 billion slightly decreased by 1.0 percent. Figure 3 compares the aggregate value of construction by type of building for the first quarters of 2006 and 2005.

4. Across the country, value of construction in the National Capital Region (NCR) consistently remained highest at P9.6 billion, accounting for 38.3 percent share of total. CALABARZON, Central Luzon, Central Visayas and Ilocos Region ranked second, third, fourth and fifth with 16.8 percent (P4.2 billion), 10.2 percent (P2.5 billion), 7.3 percent (P1.8 billion) and 5.8 percent (P1.4 billion), respectively, in terms of share of the total value of construction.

5. Approved building permits during the first quarter of 2006 summed up to 23,877, representing a decrease of 5.4 percent compared with 25,252 approved building permits recorded over the same period of the previous year.

6. A decrease in permit applications was observed for residential building construction, additions, alterations and repairs. Residential building construction went down by 9.2 percent from 18,419 to 16,717. Combined approved building permits for additions, alterations and repairs also exhibited a decline of 2.8 percent from 4,320 to 4,199 approved permits. Figure 1 compares the number of approved permits by type of building for the first quarters of 2006 and 2005 (Table A).

   

7. On the other hand, approved permits for non-residential building construction increased by 17.8 percent to 2,961 from 2,513 of the same period of 2005.

8. Among the provinces outside the National Capital Region (NCR), four provinces recorded approved building permits exceeding a thousand mark namely: Cebu (1,889), Cavite (1,662), Laguna (1,349) and Bulacan (1,093). Figure 2 shows the regional distribution of approved building permits for the first quarter of 2006 (Table 1).

   

   

   Average cost per square meter of residential building construction is P6,227

9. Total value of residential building construction was estimated at P13.1 billion with a total floor area of 2.1 million square meters or an average cost per square meter of P6,227. This figure represents an increase of 10.0 percent compared to the same period of 2005.

10. Single type residential units, comprising 82.7 percent of total approved permits for residential building construction, topped all other types of residential construction. This type of construction numbered 13,833 approved building permits covering a total floor area of 1.7 million square meters and an aggregate value of P10.4 billion. Apartment/accesoria ranked second with 1,755 approved building permits (10.5 percent), with a floor area of 150.4 thousand square meters and amounting to P947.8 billion. This was followed by duplex/quadruplex and �other residential construction� with 683 approved building permits (4.1 percent) and 421 approved building permits (2.5 percent), respectively. Residential condominium had the least share with only 25 approved building permits (0.2 percent). Figure 4 compares the number and value of residential building construction by type during the first quarter of 2006.

    

    Average cost per square meter of non-residential building construction is P7,454

11. Aggregate value of non-residential building construction amounted to P10.2 billion during the first quarter of 2006 with a total floor area of 1.4 million meters. This translates to an average cost of P7,454 per square meter or an increase of 26.9 percent compared with P5,876 of the same period of the previous year.

12. More than one half or 64.8 percent of total applications for non-residential building were for commercial buildings. This type of construction numbered 1,919 approved building permits covering a total floor area of 885.6 million square meters and an estimated value of P6.9 billion. Institutional and industrial buildings recorded 441 approved building permits valued at P1.6 billion and 254 approved building permits valued at P1.1 billion, respectively. Approved building permits for other non-residential buildings registered 187 and valued at P342.9 million while agricultural buildings recorded 160 approved building permits with an equivalent value of P188.1 million square meters. Figure 5 compares the number and value of non-residential building construction by type during the first quarter of 2006.

EXPLANATORY 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.
 

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 or construction work started 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 applications filed and approved by the Offices of Local Building Officials (LBOs). Hence, private building constructions without approved building permits are not included in the tabulation of data.
    

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, freestanding structure comprised of one or more rooms or other spaces, covered by a roof and enclosed with external walls or dividing walls, which extend the foundation to the roof.

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.

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.

Additions/alterations and repairs - Construction works by which the utility of building or structure is raised or at least renewed or which materially extends the normal life of the building or structure.

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