PSA reports 46.6-percent decline in residential condo construction

residential condo construction

Manila, Philippines – A near 50-percent drop in the number of residential condominium projects has triggered a slowdown in the growth of private construction nationwide, according to the Philippine Statistics Authority (PSA).

Preliminary data from approved building permits in the fourth quarter showed the number of residential condominiums constructed contracted 46.6 percent.

This led to a growth of only 3.6 percent in construction projects nationwide in the last quarter of the year.

“The number of residential building constructions declined by 4.3 percent to 23,693, from 24,752 reported during the same period of 2016,” the PSA said.

The total number of constructions in the fourth quarter of 2017 reached 33,445, higher than the 32,282 constructions recorded during the same quarter in 2016.

Apart from residential condominiums, other residential constructions posted contractions in the fourth quarter of last year.

All types of residential constructions, except other residential structures, showed decrements in number. Data showed apartment/accessoria contracted 10.2 percent; single-type houses, 3.5 percent; and duplex/quadruplex, 4 percent.

The lower number of construction led to a 0.9-percent contraction in total construction value in the October-to-December period last year.

Total value of constructions estimated at P81.7 billion, lower than the P82.4 billion recorded during the fourth quarter of 2016.

Residential constructions valued at P41.6 billion decreased by 12.4 percent, from P47.5 billion recorded during the same quarter of 2016.

“This was attributed to the decline in construction values of residential condominiums at 31.6 percent, and single house type of construction at 4.5 percent,” PSA said.

Meanwhile, the top 5 regions, in terms of number of constructions, comprised 56.5 percent of the total.

Calabarzon led other regions, where a total of 7,292, or 21.8 percent of the total constructions, were registered.

Central Luzon ranked second with 3,611, or 10.8 percent of constructions, followed by Region 7 (Central Visayas) with 2,804, or 8.4 percent; National Capital Region (NCR) with 2,625, or 7.8 percent; and Davao region with 2,575, or 7.7 percent of total constructions.

At the provincial level, the top 10 provinces in terms of the number of construction projects accounted for 44.3 percent of the total.

Cavite topped the list of provinces with 3,129, or 9.4 percent of total constructions, followed by Batangas and Cebu with respective shares of 1,636, or 4.9 percent, and 1,593, or 4.8 percent.

Completing the list are Iloilo with 1,378, or 4.1 percent of total constructions; Davao del Sur, 1,297 or 3.9 percent; Laguna, 1,252 or 3.7 percent; Fourth District of NCR with 1,221 or 3.7 percent; Bohol with 1,168 or 3.5 percent; Bulacan, 1,081 or 3.2 percent; and Davao del Sur, 1,070 or 3.2 percent.

In terms of value of construction, the share of the top 5 regions amounting to P59 billion comprised 72.3 percent of the total.

NCR, ranking third in the number of constructions projects, however, occupied the top slot in terms of value of construction estimated at about P22.7 billion, or 27.8 percent of the total.

Completing the top 5 were Calabarzon  with P13.8 billion, or 16.8 percent of total value; Central Visayas, P9.3 billion or 11.4 percent; Central Luzon, P7.8 billion or 9.6 percent; and Davao region, P5.5 billion or 6.7 percent.

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

For this publication, data for the provinces of Mountain Province, Sulu, Tawi-Tawi and Lanao del Sur are not included in the tabulation as these provinces did not submit any approved building permit before the generation of preliminary tables. However, if any, these are to be included in the annual tabulation.

Data for Negros Island region, comprising the provinces of Negros Occidental and Negros Oriental, are also included in this publication.

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