Number of constructions posts two-digit growth in third quarter

1. Total number of constructions in the third quarter of 2016 reached 35,684, according to the preliminary results of construction statistics from approved building permits. This represents an increase of 18.4 percent from the 30,126 constructions recorded during the same quarter in 2015.

2. The number of residential constructions rose 19.2 percent to 26,896 from 22,562 reported during the same period of 2015. The increase in number was influenced by the two-digit growth of apartment/accessoria-type (83.5%), other residential (79.4%) and single-type (16.5%) dwellings. On the other hand, duplex/quadruplex-type units(-57.9%) and residential condominiums (-42.1%) showed decrements in number.

3. Similarly, non-residential constructions numbering to 4,641 posted 27.3 percent increase from 3,647 recorded during the same period a year ago. All types of non-residential constructions except for other non-residential recorded significant growth. Commercial constructions recorded an increase of 33.3 percent; industrial, 30.1 percent; agricultural, 24.3 percent; and institutional, 18.0 percent.

4. Addition to existing structures slightly grew by 2.0 percent to 1,003 from 983 recorded during the same period of 2015. Alteration and repair of existing structures with 3,144 also went up by 7.2 percent from 2,934 recorded a year ago. Figure 1 compares the number of constructions by type for the third quarters of 2016 and 2015.

   

5. The top three regions, in terms of number of constructions, were all located in Luzon accounting for 43.8 percent of the total. Region IVA (CALABARZON) led the regions where a total of 8,710 (24.4%) constructions were built. This was followed by Region III (Central Luzon) and National Capital Region (NCR) with respective shares of 3,614 (10.1%) and 3,309 (9.3%) constructions. Region VII (Central Visayas), recording the most number in the Visayas, placed fourth with 2,934 (8.2%) constructions. Region XI (Davao Region), which topped the list of regions in Mindanao, occupied the fifth place with 2,297 (6.4%) constructions.

             Figure 2 shows the distribution of constructions by region.

6. At the provincial level, the top ten provinces comprised 44.4 percent of the total number of constructions. Cavite still occupied the top slot with 4,519 constructions or 12.7 percent of the total, followed by Cebu and Laguna with respective shares of 4.7 percent (1,675) and 4.5 percent (1,591). Completing the top ten provinces with the most number of constructions were:

• Fourth Districtof NCR with 1,477 (4.1%)
• Bohol with 1,206(3.4%)
• Batangas with 1,162 (3.3%)
• Misamis Oriental with 1,090 (3.1%)
• Bulacan with 1,088 (3.0%)
• Davao del Sur with 1,013 (2.8%)
• Negros Oriental with 1,006 (2.8%)

7. Total number of constructions in Cavite went up by 46.6 percent to 4,519 from 3,082 recorded during the same period a year ago, the highest among the top ten provinces.

         Total value of constructions down by 3.8 percent

8. Despite the 18.4 percent growth in the number of constructions, total value of constructions estimated at PHP77.2 billion declined 3.8 percent from PHP80.2 billion recorded during the third quarter of 2015.

9. Total value of residential constructions estimated at PHP39.7 billion dropped by 3.6 percent from PHP41.1 billion recorded during the same quarter of 2015. The decreases in the construction value of duplex/quadruplex (-49.8%) and residential condominiums (-33.2%) pulled down the total value of residential constructions.

10. Similarly, construction value of non-residential buildings amounting to PHP31.8 billion posted 7.1 percent drop compared with PHP34.3 billion registered during the third quarter of 2015. This was mainly due to the decrease in the construction value of commercial (-24.1%) buildings.

11. On the other hand, addition to existing structures valued at PHP1.1 billion grew 22.4 percent compared with PHP0.9 billion recorded in 2015. Alteration and repair of existing structures estimated at PHP4.6 billion rose 17.9 percent from PHP3.9 billion recorded during the same period in 2015. Figure 3 compares the value of constructions by type for the third quarters of 2016 and 2015.

12. In terms of value of construction, the share of the top three regions  amounting to PHP42.6 billion comprised more than half (55.1%) of the total. NCR, ranking third in the number of constructions, remained highest with construction value estimated at PHP20.2 billion or more than a quarter (26.1%) of the total. This was followed by CALABARZON and Central Visayas with respective shares of PHP13.4 billion (17.3%) and PHP9.0billion (11.7%).

       Average cost per square meter of residential constructions slides during third quarter

13. Average cost of residential constructions for the third quarter of 2016 estimated at PHP9,193 per square meter contracted by 15.5 percent compared with previous year’s average cost of PHP10,879. Decreases in average cost per square meter were recorded for residential condominiums (-27.7%), duplex/quadruplex-type (-8.2%) and apartment/accessoria (-5.0%) dwellings.

14. Single-type houses numbering to 21,753 dominated all other types of residential constructions comprising 80.9 percent of the total. Total value of construction for this type amounted to PHP19.1 billion with a total floor area of 2.2 million square meters or an average cost of PHP8,796 per square meter.

15. The count for apartment/accessoria-type units followed distantly with 4,484 or 16.7 percent of the total residential constructions. This type of construction was valued at PHP7.7 billion and with a total floor area of 1.1 million square meters or an average cost of PHP7,139 per square meter.

16. Duplex/quadruplex-type dwellings totaled to 576 units or 2.1 percent of the total residential constructions. Construction value for this type amounted to PHP0.5 billion and with a total floor area of 68.3 thousand square meters or an average cost of PHP7,935 per square meter.

17. Residential condominium numbering to 22 recorded construction value of PHP12.2 billion and a total floor area of 980.4 thousand square meters. Average cost for this type was PHP12,433 per square meter, registering the highest cost per floor area among the residential constructions. Figure 4 displays the number and value of residential constructions by type for the third quarter of 2016.

        Average cost per square meter of non-residential constructionslikewisecontracts

18. Average cost of non-residential constructions recorded at PHP9,944 per square meter during the third quarter of 2016 posted an annual drop of 10.9 percent,lower than the PHP11,157 per square meter registered during the same period last year. Decreases in average cost per square meter of commercial (-14.3%), industrial (-3.1) and institutional (-2.9) buildings were observed during the quarter.

19. Among non-residential constructions, commercial-type buildings recorded the most number with 2,761 or 59.5 percent of the total. Construction value for this type was estimated at PHP16.5 billion with a total floor area of 1.6 million square meters or an average cost of PHP10,052 per square meter.

20. Institutional-type buildings distantly followed with 958 or 20.6 percent of the total. This type of construction with estimated value of PHP7.0 billion had total a floor area of 563.2 thousand square meters or an average cost of PHP12,456 per square meter.

21. Industrial-type buildings came next with 571 units or 12.3 percent of the total non-residential constructions. Construction value for this type was estimated at PHP7.3 billion and with total floor area of 801.6 thousand square meters or an average cost of PHP8,905 per square meter.

22. Agricultural-type buildings recorded the least number with 235 or 5.1 percent of the total. Construction value for this type amounted to PHP0.8 billion and with total floor area of 184.1 thousand square meters or an average cost of PHP4,336 per square meter. Figure 5 shows the number and value of non-residential constructions by type for the third quarter of 2016.

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 2016, generated 60 calendar days after the reference quarter.

For this publication, data for the provinces of Sulu and Tawi-Tawi are not included in the tabulation as these provinces did not submit any 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.  Data for the newly created Negros Island Region, comprising the provinces of Negros Occidental and Negros Oriental, are also included in this publication.

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.

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

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, 3^rd 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.