Construction projects dropped 8.5% in Q4

The value of private sector construction projects in the fourth quarter of 2011 fell by 8.5 percent year-on-year to P43.8 billion as growth in domestic output continued to be feeble as opposed to the previous year, according to the National Statistics Office.

But NSO data also showed that the value of newly built residential and nonresidential structures—including additions and repairs—approved from October to December was 5.3 percent higher than the P41.6 billion recorded in the previous quarter.

Related data from the National Statistical Coordination Board showed that the construction industry jumped by 11.2 percent year-on-year in the fourth quarter last year based on 2000 prices.

The NSO said that, based on the number of approved building permits, fourth-quarter private construction projects went up by 7.6 percent year-on-year to 24,610 permits.

Compared with the previous quarter, the number of approved permits decreased by 2.6 percent from 25,255.

In yearly terms, residential projects shrank in value by 7.1 percent to P24.3 billion, while the number of permits increased by 4.5 percent to 17,451.

With a total floor area of 2.6 million square meters, residential projects chalked up an average cost of P9,209 per square meter.

Single-type units continued to make up the most number of residential building projects with 15,422 approved permits, accounting for 88.4 percent of the total for residences.

Single-type units accounted for P11.2 billion, covering a total floor area of 1.4 million square meters at an average cost of P7,867 per square meter.

Apartments and accessories made up the second biggest batch with 1,443 approved permits, or 8.3 percent of all residential projects in the fourth quarter of 2011.

These projects were valued at P3.2 billion with a total floor area of 458,900 square meters or an average cost of P7,055 per square meters.

Nonresidential projects represented a total value P15.7 billion, down by 14.1 percent over the same quarter of 2010.

With 1.9 million square meters of floor area built, the average cost of nonresidential projects reached P8,342 per square meter.

Institutional buildings represented P3.4 billion in construction spending, while industrial structures chalked up P2 billion.