Building permit applications APPROVED rose 5.7% year-on-year to 38,263 in the fourth quarter, according to the Philippine Statistics Authority.
The growth rate in permit issuances represents a reversal from the 7.8% contraction of the previous year, although it moderated from the 6.5% growth rate recorded in the third quarter of 2021.
Construction projects covered by permits issued during the period were equivalent to 7.915 million square meters (m²) of floor area worth 90.897 billion pesos. Floor area and total value increased by 21.3% and 24.8%, respectively, over the previous year.
Permits for residential projects, which accounted for 73.2% of the total, increased by 8.1% to 27,998. These projects were valued at 48.40 billion pesos with a floor area of 4.440 million m² .
Single-detached homes accounted for 82.7% of all residential projects, down 0.6% year-on-year to 23,152 permits.
Non-residential projects totaled 5,816 building permits approved during the period, up 11%.
Commercial construction accounted for 3,831 approved permits (+18.5%); agricultural, 209 (+5.0%); and other non-residential, 203 (up 35.3%).
Institutional building permits fell 0.6% to 1,070, while industrial projects fell 13% to 503.
Permits for additions to existing structures rose 91.8% to 1,051 in the fourth quarter, while permits for modifications and repairs fell 24.7% to 3,398.
The Calabarzon region – made up of the provinces of Cavite, Laguna, Batangas, Rizal and Quezon – accounted for 25.6% of all building permits approved in the fourth quarter with 9,811, followed by central Luzon with 14% or 5,371 and Central Visayas with 11.6% or 4,432.
In value, construction projects in the National Capital Region (NCR) amounted to 20.018 billion pesos. Next come Calabarzon with 18.788 billion pesos and Central Luzon with 13.938 billion pesos.
In a text message, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the period’s performance was impacted by the Delta Variant-fueled coronavirus outbreak and rising global commodity prices. raw materials.
“The slower growth could be attributed to the push for the Delta variant which led to tighter restrictions that carried over into the start of the fourth quarter,” he said.
“Some recovery in global commodity prices that led to higher construction material prices also contributed in part to slowing growth,” he added.
Metro Manila and neighboring provinces were placed under Alert Level 3 in October, in the middle of the stringent range of quarantine parameters.
Mr Ricafort expressed his optimism for the growth of the construction sector as the economy heads towards recovery with Metro Manila and other provinces now under Alert Level 1 – the quarantine setting the most permissive.
“Compensating risk factors include the Russian-Ukrainian war which has driven up the cost of building materials against a backdrop of a sharp increase in oil or energy, metals and other global commodities which has led to a rise in headline inflation, thereby increasing production costs,” he added.
In February, Russia invaded Ukraine, causing global oil prices to spike amid concerns over sanctions against Russia, a major energy producer. — Mariedel Irish U. Catilogo