Easing curbs drive up 4th quarter construction works

MANILA, Philippines — Construction activities in the country managed to recover with the downgrade of alert level in several areas, evident in the jump in the value of building works during the last quarter of the year.

Based on the Philippine Statistics Authority’s Construction Statistics from Approved Building Permits, the total value of constructions went up by 24.8 percent to P90.9 billion in the October to December 2021 period from P72.85 billion in the comparable period in 2020.

However, it was slightly lower than the P92.12 billion in the third quarter of 2021.

The number of construction projects during the fourth quarter increased by six percent to reach 38,263 projects.

It was during the last quarter of last year when the government further reopened the economy toward greater normalcy, as the Philippines saw a significant reduction in new COVID cases to less than 1,000 per day as the vaccination drive was ramped up.

By type of construction, residential projects totaling 27,998 made up 73 percent of the total number of constructions during the period. This type of construction, the majority of which were single-type houses, improved by 8.1 percent annually.

Total value also increased by 31 percent to P48.4 billion.

Non-residential projects, mostly commercial buildings, also increased by 11 percent. It comprised 15 percent of the total constructions during the period.

Value of non-residential constructions jumped 24 percent to P36.34 billion during the period.

The rest were additions and alterations and repairs of existing structures.

Building activity was still strongest in Calabarzon with 9,811 constructions or 26 percent of total. It was followed by Central Luzon and Central Visayas.

By value, however, the National Capital Region accounted for 22 percent of total at P20.02 billion. It was followed by Calabarzon, with P18.79 billion and Central Luzon, with P13.94 billion.

The total floor area of constructions for the quarter was recorded at 7.92 million square meters, which indicated an increase of 21.3 percent annually.

As the economy reopens, the average cost of construction in the fourth quarter expanded by 5.7 percent to P10,790 per square meter, with residential buildings being the most expensive at P10,900 per square meter.

Among residential constructions, condominiums had the highest average cost at P19,020.

Construction statistics are generated from 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.