Premium housing projects lift construction value in April

The Philippine construction sector saw a dip in approved building permits in April, but key indicators point to resilience in high-value residential developments, according to preliminary data from the Philippine Statistics Authority (PSA).

While the total number of permits declined by 9.6 percent year-on-year to 14,111, the value of residential construction posted a notable 5.7 percent increase, reaching P20.71 billion in April compared to P19.59 billion the previous year. This suggests that developers are focusing on quality and high-value builds despite a temporary moderation in permit issuances.

Residential projects continued to account for the bulk of construction activity, comprising nearly 66 percent of total permits for the month, with 9,288 residential developments approved.

Other segments such as additions to existing structures also reflected positive trends, with a 3.6 percent increase in project value. Although permits for alterations and non-residential structures saw lower numbers, total investments in ‘other’ construction categories surged over threefold, reaching P1 billion, a sharp rise from P288 million in April 2024.

The PSA noted that while volume has declined slightly across categories, value-focused development and selective investments continue to support construction industry momentum.

As the real estate sector adapts to market conditions, analysts suggest that developers are prioritizing more strategic builds—balancing quality, consumer demand, and long-term viability.

Despite macroeconomic pressures, the upward trend in residential construction value signals continued confidence in housing demand, especially in suburban and provincial growth centers.