Number of constructions drops by 7.7 percent in the fourth quarter of 2019

The total number of constructions in the fourth quarter of 2019 reached 37,256. This shows a 7.7 percent drop from the 40,369 total number of constructions in the same quarter of 2018. (Table A)

By type of construction, residential posted the highest number of 25,869 or 69.4 percent of the total number of constructions. Compared with the fourth quarter of 2018, the number of residential constructions posted a 13.3 percent decrease this quarter.   (Tables A and A.1)

Majority or 83.5 percent of the total residential constructions were single-type houses. Construction of residential condominiums posted the least share of 0.1 percent to the total number of residential constructions.   (Figure 1)

The total number of non-residential constructions reached 6,289 which accounted  for 16.9 percent of the total constructions. This was higher by 14.5 percent than the 5,491, non-residential constructions recorded during the same period of 2018. Among the types of non-residential constructions, commercial building contributed the highest share  of 63.3 percent.  (Tables A and A.1, and Figure 1)

The number of constructions for addition to existing structures at 1,337 was higher by 9.1 percent than the previous year’s count of 1,226.  On the other hand, the combined number of constructions for alteration and repair of existing structures at 3,761 declined by 1.2 percent, from 3,807 projects recorded in the same quarter of 2018.  (Tables A and A.1)

The top five regions, in terms of number of constructions, which accounted for 65.9 percent of the total number of constructions were:

• CALABARZON, 9,808 constructions (26.3%)
• Central Visayas, 4,880 constructions (13.1%)
• Central Luzon, 3,677 constructions (9.9%)
• Ilocos Region, 3,335 constructions (9.0%)
• National Capital Region, 2,867 constructions (7.7%)

(Figure 2)

At the provincial level, the top five provinces which accounted for 32.1 percent of the total number of constructions were:

• Cavite, 4,382 constructions (11.8%)
• Cebu, 2,025 constructions (5.4%)
• Laguna, 1,973 constructions (5.3%)
• Batangas, 1,953 constructions (5.2%)             
• Bohol, 1,615 constructions (4.3%)

(Table 1)

Total value of constructions decreases by 8.8 percent

In the fourth quarter of 2019, the total value of constructions amounted to PhP111.6 billion.  This value declined by 8.8 percent from the PhP122.4 billion value of construction in the fourth quarter of 2018.  (Table A)

Residential building constructions, valued at PhP52.2 billion, accounted for 46.7 percent of the total value. This shows a decrease of 9.3 percent from the PhP57.5 billion construction value posted in the same quarter of 2018.  (Tables A and A.1, and Figure 3)

Construction value of non-residential buildings amounted to PhP52.3 billion (46.9%), a 2.0 percent decrease from the PhP53.4 billion value of construction in the fourth quarter of the previous year.

Moreover, construction value of addition to existing structures, which amounted to PhP1.3 billion or 1.1 percent of the total, dropped by 13.0 percent, from PhP1.5 billion in the same period of 2018. Similarly, combined construction value of alteration and repair of existing structures at PhP5.8 billion (5.2%) fell by 42.1 percent, from the PhP10.1 billion construction value recorded in the same quarter of 2018.  (Table A.1)

The combined shares of the top five regions, in terms of value of construction, amounted to PhP83.0 billion (74.4%). These regions were:

• NCR, PhP32.2 billion (28.8%) 
• CALABARZON, PhP19.4 billion (17.4%)
• Central Visayas, PhP12.0 billion (10.7%)
• Central Luzon, PhP11.4 billion (10.2%)
• Western Visayas, PhP8.0 billion (7.2%)

(Figure 4)

Average cost per square meter of residential building constructions increases  by 12.0 percent

Residential building constructions for the fourth quarter of 2019 had an average cost of PhP11,878 per square meter and an average floor area of 169.8 square meter per building. The average cost per square meter shows an increase of 12.0 percent from the average cost of PhP10,603 per square meter in the same quarter of 2018.  (Figure 5 and Table A.1)

Among residential constructions, residential condominiums posted the highest average cost of PhP19,391 per square meter. This type of residential construction had an average floor area of 25,454.1 square meters per building.

Average cost per square meter of non-residential building constructions increases by 5.7 percent

Non-residential building constructions had an average cost of PhP11,609 per square meter and an average floor area of 716.8 square meters per building. The average cost was 5.7 percent higher than the PhP10,983 average cost per square meter registered in the same quarter of 2018.  (Figure 5 and Table A.1)

Institutional-type building construction reported the highest average cost of PhP15,365 per square meter with an average floor area of 717.0 square meters per building. Agricultural-type building construction recorded the lowest average cost of PhP5,055 per square meter with an average floor area of 1,626.1 square meters per building.

(Sgd) ROSALINDA P. BAUTISTA
Assistant Secretary
Deputy National Statistician
Sectoral Statistics Office

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 fourth quarter of 2019. Data are presented in monthly and quarterly statistical tables at the regional and provincial level by type of construction.

Scope and Coverage

Construction statistics presented in this special release are based on approved building permits on new constructions and additions, alterations and repairs of existing residential and non-residential buildings, and other structures which are proposed to be constructed in the different cities/municipalities of the country.

Sources of Information

Construction statistics are generated from 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).

Limitations of data

1. Data on building constructions are based from approved applications for construction during the reference period and not on the construction work completed during the reference period.

2. The completeness of construction data relies on the approved applications filed with the LBOs. Hence, building constructions without approved building permits are excluded in the tabulation of data.

Geographic Classification

For the fourth quarter of 2019, building constructions are classified and presented by geographic area using the Philippine Standard Geographic Classification (PSGC) as of December 2017.

Statistics Generated

Construction statistics generated from approved building permits provide monthly data on building construction at the regional and provincial level. The statistics generated are the following:

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

Aside from the preliminary tables posted in the PSA website, the annual, quarterly and monthly statistical tables at the municipality level by type of construction are available at the Industry Statistics Division (ISD) under the Economic Sector Statistics Service (ESSS) of the PSA.

Dissemination

Preliminary results of construction statistics are made public in the form of Quarterly Special Releases. The Quarterly Special Releases are reports containing the preliminary results of construction statistics submitted within the cut-off dates for each month. This is posted 65 days after the reference quarter in the PSA website (www.psa.gov.ph).

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, 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, etc.

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 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 their value and quality.

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 furnitures 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.