CONSTRUCTION activity in the Philippines fell sharply in September, with approved building permits dropping 25 percent year on year as both residential and non-residential projects recorded double-digit declines, the Philippine Statistics Authority reported.
Total approved constructions reached 11,746 in September, down from 15,663 a year earlier. This followed a 0.6 percent annual drop in August.
Residential buildings continued to dominate the construction pipeline, accounting for 7,209 permits, or more than three-fifths of all projects.
However, this segment fell 30.5 percent from the 10,379 recorded in September 2024. Single-detached houses made up 85 percent of all residential projects.
Non-residential projects reached 2,782 permits, representing 23.7 percent of the total and down 15.4 percent from a year earlier.
Commercial buildings comprised the bulk of these at 1,808, or 65 percent.
Construction value declines 16 percent
The total value of construction projects slid 16.1 percent to P45.14 billion from P53.78 billion in the same month last year.
Residential projects accounted for P19.94 billion, or 44.2 percent of total value, down 13.7 percent from a year earlier. Single-detached homes also led in value at P11.32 billion.
Non-residential construction value dropped 24 percent to P19.03 billion. Institutional buildings posted the highest value among this group at P7.57 billion, accounting for nearly 40 percent.
Average construction costs ease
The average cost of construction declined 4.9 percent to P12,390 per square meter from P13,033 a year earlier. The PSA excluded projects with no reported floor area, such as repairs, demolitions and certain utility structures.
Residential projects were the costliest to build at an average of P15,562 per square meter, followed by non-residential at P10,273 and additions to existing structures at P9,743.
Among residential types, condominiums posted the highest average construction cost at P24,100 per square meter, while other residential structures were the lowest at P8,215.
For non-residential buildings, institutional structures remained the most expensive at P14,921 per square meter, while agricultural buildings were the least costly at P4,904. (KOC)