Construction activity in the Philippines continued to weaken in November 2025, with approved building permits pointing to a sustained slowdown as developers adopt a more cautious stance.
The decline comes amid a raging public controversy over alleged corruption in government flood control projects, which has raised concerns over governance, public spending efficiency, and investor confidence.
Data from the Philippine Statistics Authority show that the number of constructions approved in November slipped to 12,281, down 13 percent from 14,066 in the same month last year. While this was an improvement from October’s steeper 16 percent annual drop, the figures signal persistent softness in the sector.
Residential buildings remained the largest component, accounting for more than three-fifths of total construction activity. A total of 7,691 residential constructions were approved during the month, but this was still 15 percent lower than the 9,000 recorded a year earlier. Single-type houses dominated the segment, making up 89 percent or 6,829 projects, underscoring continued preference for low-density housing despite weaker overall momentum.
Non-residential construction ranked second, with 2,854 approved projects or 23 percent of the total. This segment declined by 9.7 percent year-on-year, a slower contraction than residential construction. Commercial buildings accounted for the bulk of non-residential activity, with 1,894 projects or 66 percent, reflecting selective expansion by businesses.
The slowdown was more evident in value terms. Total construction value dropped 23 percent to P40.20 billion in November. Residential construction value fell 18 percent to P19.12 billion, while non-residential construction value slid sharply by 28 percent to P17.51 billion.
Government economists had said that the ongoing controversy surrounding alleged corruption in flood control projects have added to uncertainty, potentially delaying approvals and dampening both public and private construction investment.
