Approved building permits decline sharply in 2Q, dims construction prospects

Approved building permits in the second quarter dropped 15 percent year-on-year to 36,136, pulled down by a sharp decline in approved residential permits, data from the Philippine Statistics Authority showed.

The size in square meters and the value of the projects covered by approved permits also declined in the second quarter compared to the same period last year or even against the first quarter this year.
 Statistics on building permits are leading indicators of demand for real estate and future construction activities. Construction is a major contributor of the industry sector, which accounts for about a third of gross domestic product.

Data showed the value of projects in the second quarter dropped 17 percent to P87.83 billion from P106.02 billion last year. In the first quarter, the value of projects covered by 41,558 approved permits stood at P104.33 billion.

In terms of size, approved permits covered in the second quarter total 7.24 million square meters, down from 9.1 million square meters in the second quarter of 2022 and 8.93 million square meters this year.

Approved permits for residential projects in the second quarter was down 20 percent year-on-year to 24,175 while those for non-residential projects increased 10 percent year-on-year to 7,928. Permits for other building projects was up 15 percent to 1,553.