The Market Monitor Minding the Nation's Business
By Daryl Rose Virtudazo
Although building constructions registered an increase of 7.5 percent in the fourth quarter of 2015, compared with the figure in the same period in 2014, total value of construction decreased by 5.2 percent from P72.4 billion in the fourth quarter of 2014 to P68.6 billion in the same period in 2015.
Based on preliminary results released by the Philippine Statistics Authority, this can be attributed to the declines in the construction value of non-residential constructions, addition to existing structures, and alteration and repair of existing structures.
The value of residential constructions slightly increased by 1.2 percent to P30.0 billion from the P29.6 billion recorded in the same quarter of 2014. This was influenced by the increases in the construction value of single-type houses that accounts for 25.1 percent, and other types of residential constructions at 183.2 percent.
On the other hand, the value of non-residential constructions amounting to P33.9 declined by 6.5 percent from the P36.2 billion registered in the fourth quarter of 2014. The two-digit decreases in the construction value of commercial buildings at 18.6 percent, industrial buildings at 10.1 percent, and other types of non-residential constructions at 63.8 percent pulled down the total value of non-residential constructions.
Likewise, the construction value of addition to existing structures estimated at P1.1 billion fell by 13.3 percent from the P1.3 billion recorded during the same period in 2014. Alteration and repair of existing structures valued at P3.6 billion dropped by 31.0 percent, compared with the P5.2 billion posted in 2014.
In terms of value of construction, the share of top five regions comprised 60.1 percent of the total. Metro Manila consistently remained the highest with a construction value of P22.8 billion, accounting for about one-third (33.2 percent) of the total. This was followed by the Region 4-B (Calabarzon) and 3 (Central Luzon) with respective construction value of P11.1 billion (16.1 percent) and P7.4 billion (10.8 percent). Region 7 (Central Visayas), with construction value of P5.4 billion (7.9 percent), and Region 11 (Davao) with P3.9 billion (5.7 percent), placed fourth and fifth, respectively.
Meanwhile, building construction registered an increase of 7.5 percent from 29,443 in the fourth quarter of 2014 to 31,638 in the same period in 2015.
The number of residential buildings rose by 14.7 percent to 24,274 from 21,155 reported in the same period in 2014. Of the said number, the construction of single-type houses accounts for 25.4 percent and other types of residential constructions reached 69.6 percent were the drivers of growth in residential constructions. On the other hand, construction of duplexes/quadruplexes, residential and apartments/accessorias decreased in number with 51.1 percent, 34.8 percent, and 5.6 percent, respectively.
Non-residential constructions numbering 3,717 went up by 5.6 percent from the 3,520 reported in the same period in 2014. This was brought about by the increases in the construction of commercial buildings by 12.6 percent and other types of non-residential constructions by 143.8 percent. All other types of non-residential constructions showed decrements in number.
Addition to existing structures, with 981 projects, dropped by 35.8 percent from the 1,528 recorded in the same period in 2014. Likewise, alteration and repair of existing structures fell by 17.7 percent to 2,666 from 3,240 projects recorded a year earlier.
The top five regions, in terms of number of constructions, comprised 63.1 percent of the total. Region 4-A remained the highest with 8,349 constructions, accounting for more than one-fourth or 26.4 percent of the total. Region 7, ranking fifth in the same period last year, occupied the second slot with 3,756 constructions or 11.9 percent. Other regions in the top five are as follows:
• Region 3, with 2,897 constructions (9.2 percent)
• National Capital Region (NCR), with 2,558 constructions (8.1 percent)
• Region 11, with 2,418 constructions (7.6 percent)
The top 10 provinces accounted for 47.2 percent of the total number of constructions. Cavite continued to occupy the top slot with 3,716 constructions (11.7 percent), followed by Laguna and Bohol with 2,117 (6.7 percent) and 1,449 (4.6 percent) constructions, respectively. Completing the top 10 are:
• Cebu, with 1,366 constructions (4.3 percent).
• Bulacan, with 1,313 constructions (4.2 percent).
• Batangas, with 1,173 constructions (3.7 percent).
• Davao del Sur, with 1,003 constructions (3.2 percent).
• Misamis Oriental, with 999 constructions (3.2 percent).
• Negros Oriental, with 902 constructions (2.9 percent).
• Iloilo with 897 constructions (2.8 percent).
The number of constructions in Iloilo increased by 84.6 percent, the highest among the top 10 provinces. This was brought about by the significant growth in the construction of apartment/accesoria and single-type dwellings in the province.
Average cost of residential-type building is P9,337 per square meter.
The average cost of residential construction for the fourth quarter of 2015 was estimated at P9,337 per sq.m., higher by 2.1 percent compared with the previous year’s average cost of P9,145. This was influenced by the two-digit increases in the average cost per sq.m. of residential condominiums (19.8 percent) and duplex/quadruplex buildings (15.7 percent).
Among residential constructions, single-type houses recorded the most number of projects with 21,045 accounting for 86.7 percent of the total. Total value of construction for this type amounted to P16.8 billion covering a total floor area of 1.9 million sq.m., or an average cost of P8, 672/sq.m.
Apartment/accessoria-type units followed with 2,188 projects, or 9 percent of the total residential construction. This type of construction, valued at P4.1 billion, had a total floor area of 579.9 thousand sq.m. or an average cost of P7,150/sq.m.
Duplex/quadruplex-type dwellings came next with 972 projects, or 4 percent of the total residential construction. Construction value for this type amounted to P0.7 billion, with a total floor area of 91.0 thousand sq.m. or an average cost of P7, 325/sq.m.
Residential condominiums numbering to only 30 (0.1 percent) had a construction value of P8.3 billion and total floor area of 596.4 thousand sq.m., translating to an average cost of P13,956/sq.m.
Average cost of non-residential construction is P10,125/sq.m.
Average cost per sq.m. of non-residential constructions dropped by 25 percent to P10,125 from P13, 493 recorded in the same quarter in 2014. This was brought about by the declines in the average cost per sq.m. of industrial (-52.9 percent) and commercial (-24.2 percent) buildings.
Commercial-type buildings dominated all other types of non-residential constructions with 2,303 projects, or 62 percent of the total. The construction value for this type amounted to P17.2 billion with a total floor area of 1.7 million sq.m. or an average cost of P10,395/sq.m.
Institutional-type buildings came next with 753 projects (20.3 percent), construction value of P6.6 billion and total floor area of 535.2 thousand sq.m., translating to an average cost of P12,278/sq.m.
Industrial-type buildings ranked third with 400 projects (10.8 percent). Total construction value for this type was estimated at P9.3 billion, with total floor area of 564.4 thousand sq.m., or an average cost P8, 374/sq.m.
Agricultural-type buildings made up of 144 projects or 3.9 percent of the total non-residential construction. Construction value for this type amounted to P0.7 billion, with total floor area of 139.0 thousand sq.m., or an average cost of P4, 834/sq.m.
According to the PSA, data for the provinces of Apayao, Lanao del Sur, Sulu and Tawi-Tawi, and Isabela City are not included in the tabulation, as these did not submit any building permit document and/or certification of no approved building permit before the generation of preliminary tables.