Construction Statistics from Approved Building Permits in Central Luzon, Third Quarter 2020

Reference Number: 

2021-SRBP-Q32020-014

Release Date: 

Thursday, March 25, 2021

Central Luzon’s Approved Building Permits dropped by 28.6 percent

Central Luzon’s total number of new constructions was recorded at 4,009 during the third quarter of 2020, based on the preliminary results of construction statistics from approved building permits. This represents a dropped of 28.6 percent from the 5,614 constructions recorded during the same quarter in 2019.

Among the provinces in the region, Bulacan recorded the highest construction activity at 1,446, accounting for more than one-thirds (36.1%) of the total. This was followed by Pampanga and Tarlac with respective shares of 24.6 percent (988 constructions) and 11.5 percent (462 constructions). Figure 1 presents the distribution of the number of constructions by province for the third quarter of 2020.

The number of residential buildings has decreased considerably by 30.1 percent from the 4,244 registered in the third quarter of 2019 to 2,965 in the same period of 2020. The significant decrease was mainly attributed to the dropped in the construction in all types of residential buildings. (see Table B)

Similarly, the number of non-residential constructions slightly decreased from 869 reported in the third quarter of 2019 to 800 in the same period of 2020. This was primarily influenced by the decrease in the construction of institutional (18.2%), commercial (16.9%) and other non-residential buildings (14.8%).

Furthermore, the number of addition to existing structures decreased by 6.3 percent from 63 in same period of 2019 to 59 in the 3rd quarter of 2020. In the same manner, alteration and repair of existing structures was registered at 185, lower than the 438 recorded during the same quarter of 2019. Figure 2 compares the number of constructions by type for the third quarter of 2020 and of 2019.

Total value of constructions amounts PhP 9.70 billion

The total value of constructions in the third quarter of 2020 was estimated at PhP 9.70 billion, representing a decrease of 18.2 percent from the previous year’s construction value of PhP11.85 billion.

The construction value of residential buildings amounting to PhP 4.73 billion, decreased by 20.6 percent compared with the PhP 5.96 billion registered during the same period in 2019. This was brought about by the considerable decrease in the construction value in all types of residential constructions.

The non-residential constructions valued at PhP4.75 billion fell off by 10.5 percent from PhP 5.31 billion recorded during the same period in 2019. Leading the decline in the construction value of non-residential buildings were other non-residential and commercial buildings at 78.0 and 42.5 percent, respectively.

Likewise, alteration and repair of existing structures estimated at about PhP 0.17 billion decreased by 64.8 percent. Similarly, the value of addition to existing structures dropped by 50.6 percent from 2019’s PhP 0.11 billion to PhP 0.05 billion. Figure 3 compares the value of constructions by type for the third quarters of 2020 and 2019.

Average cost per square meter of Residential constructions went up by 2.1 percent

The average cost of residential constructions was estimated at PhP9,469 per square meter, higher by 2.1 percent compared with the average cost of PhP9,277 per square meter in the 3rd quarter of 2019. This was generally attributed by the increase in the average cost per square meter in all types of residential constructions.

Non-residential constructions’ average cost per square meter up by 3.0 percent
 
The non-residential constructions’ average cost per square meter up by 3.0 percent from PhP8,031 during the same period a year ago to PhP8,270. Increases in the average cost per square meter of institutional (27.9%) and industrial (9.7%) were observed during the quarter.

TECHNICAL NOTES

CONSTRUCTION STATISTICS FROM APPROVED BUILDING PERMITS

 

This Special Release presents the preliminary data on construction statistics from approved building permits in Central Luzon for the third quarter of 2020. Data are presented at the provincial level by type of construction in Tables 1 to 7.  

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 September 2018. 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.

Statistics Generated

Construction statistics generated from approved building permits provide administrative-based data on building construction. Statistics generated are the following:

·         number

·         floor area

·         type of construction

·         value of construction

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 accesoria 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 constructions consist 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.

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.

Demolition refers 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.

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