Building construction recovers in September 2024

The number of constructions from approved building permits in September 2024 reached 14,063, up 4.4% from 13,475 in the same month last year.

The Philippine Statistics Authority (PSA) said that by type of construction, residential buildings reported the highest number at 9,354 or 66.5% of the total in September. It recorded an annual increase of 10% from 8,501 constructions in September 2023. Majority of the total residential constructions were single-type houses with 7,293 constructions (78.0%).

Meanwhile, non-residential constructions reached 2,987 or 21.2% of the total. This declined 2.0% from a year earlier. Most of the non-residential constructions were commercial buildings with 1,989 constructions (67%).

Additions, which refer to any new construction that increases the height or area of an existing building, alteration and repair of existing structures, and other constructions contributed 3.2%, 7.1%, and 2.0% to the total number of constructions, respectively. Compared with their respective numbers in the same period of the previous year, the annual rates for these types of construction declined by 19.3% for addition, 7.7% for alteration and repair, and 5.0% for other constructions.

In September 2024, the total value of constructions amounted to P40.34 billion, reflecting an annual decline of 4.8% from P42.35 billion in the same month last year.

Residential building constructions valued at P18.97 billion accounted for almost half (47%) of the total value of constructions during the period. This represented a decline of 3.0% from P19.57 billion a year ago.

The construction value of non-residential buildings amounted to P18.61 billion or 46.1% of the total. This reflects an increase of 5.8% from P17.60 billion a year ago.

The total floor area of constructions was recorded at 3.11 million square meters in September, excluding alteration and repair, other non-residential such as facade, helipad, niche, water tank, etc., and other constructions, which include demolition, street furniture, landscaping, and signboards, since there is no reported floor area for these types of constructions.

The total floor area in September 2024 registered an annual decline of 1.8% from the recorded 3.16 million square meters floor area in the same period in 2023.

Residential constructions posted 1.55 million square meters or 49.9% of the total floor area of constructions in September. This reflects an annual decline of 3.7% from the floor area of residential constructions in the same month of 2023 at 1.61 million square meters.

Non-residential constructions recorded 1.52 million square meters or 49.0% of the total floor area and increased at an annual rate of 0.4% from the previous year’s 1.51 million square meters.

The average cost of construction in September 2024 was recorded at P12,192.54 per square meter. This was 2.8% higher than the average cost of P11,861.23 per square meter in September 2023.

Residential buildings had the highest average cost of P12,243.17 per square meter during the month. This was followed by non-residential constructions with P12,161.17 per square meter, and addition to existing constructions with P11,991.70 per square meter.

Among residential constructions, residential condominium-type posted the highest average cost of P14,825.25 per square meter, while other residential such as container van house, staff housing, servants quarter, etc. recorded the lowest average cost of P8,447.33 per square meter.

Across non-residential constructions, institutional-type buildings reported the highest average cost of P16,037.88 per square meter. On the other hand, agricultural-type buildings registered the lowest average cost of P5,931.01 per square meter.