Fewer building projects were launched in January 2024 compared to last year.
The Philippine Statistics Authority said the number of newly-issued building permits dropped 17.3 percent in January to 11,433, following a smaller decline in December.
Homes continued to be the most popular construction project, with over 7,300 permits issued in January. That’s two-thirds of all permits, but it’s still a 22-percent drop from the same time last year.
The number of permits issued for building construction fell 17.3 percent in January 2024 to 11,433 from 13,824 in January 2023.
This followed a December 2023 decline of 5.3 percent, according to the PSA.
Residential buildings accounted for the most significant share of construction permits issued in January 2024, with 7,390 permits, or 64.6 percent of the total. However, this represented a 22.3-percent decrease from January 2023’s 9,507 permits.
Single-family homes comprised the majority of residential permits at 88.0 percent or 6,506.
Non-residential construction permits came in second at 2,876 or 25.2 percent of the total, showing a slight year-on-year increase of 0.6 percent. Commercial buildings led this category, accounting for 72.2 percent or 2,077 of non-residential permits.
Additions and alterations to existing structures made up the remaining 10.2 percent of permits.
Data showed that the total value of construction projects authorized in January 2024 amounted to P29.83 billion, down 7.5 percent P32.25 billion in January 2023.
Residential construction held the largest share of the total value at P13.60 billion or 45.6 percent, but this reflected a 14.0-percent decline from January 2023. Single-family homes again led the way, contributing P10.67 billion or 78.4 percent of the residential value.
Non-residential construction value amounted to P13.10 billion or 43.9 percent, a 3.4-percent decrease from January 2023. Commercial buildings topped this category with a value of P6.04 billion or 46.2 percent.
The combined value of additions and alterations to existing structures reached P3.13 billion or 10.5 percent.
The total floor area authorized for construction in January 2024 was 2.34 million square meters, a 27.5-percent decrease from the 3.23 million square meters recorded in January 2023.
Non-residential construction permits covered 1.16 million square meters or 49.5 percent of the total floor area, reflecting a 9.0 percent decline year-on-year. Residential construction permits encompassed 1.11 million square meters or 47.6 percent of the total), down 41.7 percent from January 2023.
The average construction cost per square meter in January 2024, excluding alterations, repairs, and other non-residential projects, was P11,402.00. This represented a 23.8-percent increase from P9,212.21 average cost per square meter in January 2023.
Residential buildings had the highest average cost at P12,220.80 per square meter, followed by non-residential at P10,713.27) and additions P9,704.64.