The Philippine Statistics Authority (PSA) has reported a 15 percent year-on-year decline in the number of construction permits approved in January to 12,526, a greater decrease from the 5 percent posted in December and an indication of a glut in supply.
Real estate consultancy firms have traced the excess supply in office space and residential units to the government’s decision to ban Philippine overseas gaming operations or POGO.
Residential buildings, which accounted for 61.2 percent of the total constructions, experienced a notable decline of 14 percent year-on-year to 7,671 permits. Single-type houses dominated the residential category, making up 90 percent of the constructions, with 6,863 reported.
The non-residential sector, which saw 3,138 constructions or 25 percent of the total, also posted a decline, albeit at a smaller rate of 4.3 percent. Commercial buildings led non-residential constructions, accounting for 2,288 of the projects.
In contrast to the overall drop in numbers, the construction value for January rose significantly by 26 percent, reaching P48.58 billion. This increase was driven by non-residential buildings, which made up nearly half of the total value at P24.16 billion, a 40.4 percent growth from the previous year. Residential buildings also saw a positive shift, with a 28 percent increase in value to P20.94 billion.
Floor area for all constructions in January increased by 30 percent year-on-year, reaching 3.72 million square meters. Non-residential constructions contributed 60 percent of this growth, with a 52 percent rise in floor area.
Despite the downturn in the number of construction permits, the overall value and floor area expansion indicate continued investment in both residential and non-residential development in the Philippines.
