Construction activities up 20% in Q2

Construction activity in the country rose 20.2 percent in the second quarter due primarily to an increase in residential buildings, the Philippine Statistics Authority (PSA) reported yesterday.

Based on approved building permits during the period, the total number of constructions during the reference period reached 39, 635, up from 32, 974 in the same period last year.

The number of residential buildings being built rose 23.7 percent to 30,366 in the second quarter from 24, 543 in the same period last year. All types of residential constructions registered two-digit expansions during the period: residential condominiums (48.4 percent), other residential (42.4 percent), duplex/quadruplex (24.2 percent) and single-type houses (25.5 percent).

Construction of non-residential constructions rose 15 percent to 4,548, from 3,956 recorded during the same period a year ago. All types of non-residential constructions exhibited twodigit growths, led by other nonresidential which registered a 70.3 percent increase.

Permits for additions to existing structures rose 11.2 percent to 1,444 in the second quarter from 1,298 recorded during the same period of 2015. Likewise, alteration and repair of existing structures with 3,277 grew 3.1 percent from 3,177 recorded a year ago.

The bulk of these construction projects—60 percent—were situated in Region IVA (CALABARZON), Region VII (Central Visayas), Region III (Central Luzon), National Capital Region and Region XI (Davao Region).

In terms of value, the total number of approved construction projects in the second quarter of 2016 was placed at P116.9 billion, up 48 percent from P70 billion in the same period last year.

Residential constructions valued at P50.8 billion rose 38.3 percent from P36.7 billion recorded during the same quarter of 2015. The significant increases in the construction value of other residential, residential condominiums, duplex/quadruplex and single houses pulled up the total value of residential constructions.

Construction value of nonresidential buildings amounting to P58.7 billion was up 69 percent compared to P34.7 billion registered during the second quarter of 2015. This was attributed to the upswing in the construction value of commercial, agricultural, industrial,and institutional buildings.

The value of alteration and repair of existing structures estimated at P5.9 billion was up 6.2 percent in the second quarter of 2016 compared with P5.6 billion recorded in 2015. On the other hand, addition to existing structures valued at P1.5 billion fell 23.8 percent from P2 billion recorded during the same period in 2015.

Increased construction activity was reflected in the increased importation of durable goods in June.

Socioeconomic Planning Secretary Ernesto Pernia said strong construction activity is seen to boost spending on durable equipment and capital goods.