Total number of approved building permits increases

Approved building permit applications for the year 2023 posted a significant increase of 70.8% or 418 approved applications compared to last year which is 296 approved applications. The significant increase applies to all non-residential constructions. Out of the approved applications in the same period, 57.8% were residential constructions. Of the residential constructions, 99% single houses. Non-residential constructions also contributed 43.1% to the total permits or 180 approved applications. Of this figure, 87.8% were commercial buildings, 11.1% were institutional buildings and 0.01% were other Non-Residential buildings.

An increase was also recorded in the construction for Street Furniture/Landscaping/Signboard from 12 in 2022 to 16 in 2023. There was no recorded Demolition or Moving in the two-year reference period.

Total value of construction increases

Total value of construction from approved building permits for the 2023 was registered at Php 1.81 billion against Php 467.21 million 2022 or a significant increase 300.87 percent.

Alterations and Repair projects had the highest total value of constructions at Php 852.6 million or 47.1 percent of the total value of construction for said period followed by non-residential buildings with Php 672.0 million or 37.1 percent. Meanwhile, the total value of residential buildings was estimated at Php 275.7 million or 15.2 percent. Additions projects posted a total value of constructions at Php 9.5 million and Street Furniture/Landscaping/Signboard was estimated at Php 9.4 million.

Average cost per square meter of residential building constructions is Php 10,564

Total value of construction for residential buildings in 2023 was Php 275.7 million with a total floor area of 26,097 square meters. This translates to an average cost of Php 10,564 per square meter with an increment of 7 percent compared with Php 9,847 average cost per square meter posted in the 2022.

Average cost per square meter of non-residential building constructions is Php 11,777

Total value of construction for non-residential buildings in 2023   was Php 672 million with a total floor area of 57,056 square meters. This translates to an average cost of Php 11,777 per square meter with a decrement of 7 percent compared with Php 12,561 average cost per square meter posted in 2022.

Commercial-type buildings numbering to 158 or 87.8 percent dominated all other types of non-residential construction during the year. The value of construction for this type amounted to Php 224.25 million with a total floor area of 23,031 square meters or an average cost of Php 9,737 per square meter.

Institutional-type buildings followed next with 20 or 11.1 percent share of the total non-residential construction. Construction value for this type was Php 446.61 million with a total floor area of 34,025 square meters, translating to an average cost of Php 13,126 per square meter.

Other Non-residential type buildings came with only 2 constructions with a total construction value of Php 1.13 million.

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 years 2023 and 2022.

Scope and Coverage

Constructions statistics from approved building permits relate to the administrative-based data on new construction and additions, alterations and repairs of existing residential and non-residential buildings and other structures proposed to be constructed in all cities and municipalities nationwide in a specific period.

Source of Information

Constructions statistics are compiled by the Philippine Statistics Authority (PSA) from the copies of original application forms of approved building as well as from the demolition permits collected every month by the PSA field personnel from the Office of the Local Building Officials (LBOs) nationwide in a specific period.

LIMITATIONS:

1.    Data on private building constructions refer to those proposed to be constructed 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 Office of the Building Officials (LBOs). Hence, private building constructions without approved building permits are excluded form the tabulation of data.

Geographic Classification

Private building constructions are classified and presented by the geographic area using the Philippine Standard Geographic Classification (PSGC). The PSGC contains the latest updates on the official number of provinces of Region VII.

The geographic codes are in accordance with NSCB Resolution No. 3, Series of 2005 that approved the PSGC.

Industry Classification

Construction statistics utilizes the amended 1994 Philippine Standard Industrial Classification (PSIC) to classify the main activity though the use type of occupancy of the building.

Definitions of Terms:

Building Permit is 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 refers to any independent, free-standing structure comprised of one or more rooms or other spaces, covered by a roof and enclosed 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 and equipment of building/structures.

Residential buildings are buildings 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, and apartment and/or accessories and residential condominium.

Single house is a complete structure intended for a single family or household, i.e. bungalow, 2-story 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 wall and courts.

Accessoria is 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 constructions consist of school of company staff houses and living quarters for drivers, maids and guardhouses.

Non-residential buildings include these type of buildings: Commercial, Industrial, Agricultural and Institutional Buildings.

Commercial buildings refer to office buildings and all buildings which are intended for use primary in wholesale, retail and service trades; i.e. stores, hotels, restaurants, banks, disco houses etc.

Industrial buildings are buildings which are primarily engaged in providing educational instructions and hospital/health care; ports, airports and other government buildings; i.e. schools, museums, libraries, sanitaria, churches, hospitals.

Agricultural buildings are buildings used to house livestock, plants and agricultural products such as barns, poultry houses, piggeries, stables, greenhouses and grain mills.

Other non-building constructions include cemetery structures, street furniture, waiting sheds, communication towers, etc.

Addition refers to any construction which increases the height or area of an existing building/structure.

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.

Repair is a remedial work done on any damaged or deteriorated portion/s of a building/structure to restore its original condition.

Demolition refers to the systematic dismantling of destruction of a building/structure or in part.

Street Furnitures are street structures which consist 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 permits and represents the estimated value of the building or structure when completed.

(SGD) JOSELITO C. MAGHANOY
(Supervising Statistical Specialist)/
Officer-in-Charge