Construction projects surged 59.5% in Q1

MANILA, Philippines—-The value of private-sector construction projects in the first quarter of 2010 jumped 59.5 percent year-on-year to P47.3 billion, according to the National Statistics Office.

NSO data also showed that the value of newly built residential and non-residential structures, including additions and repairs, from January to March was 18.1 percent higher than the P40.06 billion posted in the previous quarter.

The government hopes that the construction industry will continue to be a major growth driver, as it had in 2009, to shore up growth and keep the country on track toward full recovery from the global financial crisis.

Based on the number of approved building permits, first-quarter private construction projects surged by 9.9 percent year-on-year to 29,992 permits.

But compared to the fourth quarter, the number of approved permits dipped by 16.6 percent from 30,499.

Residential projects grew in both value and number, increasing by 24.6 percent to P21.3 billion and by 20.3 percent to 23,586 permits.

With a total floor area of 2.6 million square meters, residential buildings chalked up an average cost of P8, 126 per square meter.

Single-type units continued to make up the most number of residential building projects with 17,502 approved permits—almost three-fourths of the total for residences.

Single-type units accounted for P12.5 billion, covering a floor area of 1.7 million sq m at an average cost of P7, 467 per sq m.

Apartments and accessories made up the second biggest batch with 5,598 approved permits, about a quarter of all residential projects in the fourth quarter.

These projects were valued at an estimated P3.1 billion with a total floor area of 446,800 sq m, or an average cost of P6, 914 per sq m.

Nonresidential projects represented a total value P22.3 billion—an increase of 130 percent over the same quarter of 2009.

At 2.4 million sq m built, the average cost of non-residential projects settled at P9, 471 per sq m.

Of these, commercial buildings accounted for P16.6 billion which, at 1.5 million sq m built, cost P11, 108 per sq m.

Institutional buildings represented P2.8 billion in construction spending, while agricultural structures chalked up P200 million. –Ronnel Domingo, Philippine Daily Inquirer