Construction activity in December 2024 saw a 10.8% decline in approved building permits, with a total of 10,809 recorded, down from 12,116 permits issued in the same month of 2023, according to the latest data from the Philippine Statistics Authority (PSA).
Despite the decline, residential buildings continued to dominate, accounting for 62.2% of all constructions with 6,728 projects. However, this category experienced a 15.7% drop from the 7,983 residential constructions recorded in December 2023. Among these, single-type houses were the most common, making up 91.2% of the total residential constructions.
Non-residential buildings followed with 2,589 constructions, representing 24% of the total permits. This number remained steady from the previous year, with commercial buildings taking the lead in this category, accounting for 67.3% of non-residential projects. Smaller contributions came from additions, which refer to any new construction that increases the height or area of an existing building, (3.6%); alterations and repairs of existing structures (7.7%); and other types of constructions (2.5%).
In terms of construction value, non-residential projects also led the way, reaching P16.26 billion. This was a decline of 9.7% from P18 billion in 2023. Commercial buildings within the non-residential sector had the highest value, totaling P7.57 billion.
The total construction value in December 2024 amounted to P32.94 billion, marking an 11% decrease from P37 billion in December 2023. Residential buildings represented P13.62 billion of this total, 41.3% of the value, down by 8.4% from the previous year. Within this sector, single-type houses had the highest value at P10.22 billion.
Regarding floor area, total constructions covered 2.63 million square meters, a decrease of 20.7% from 3.31 million square meters in December 2023. Non-residential buildings accounted for 54.9% of the total floor area, though this sector also saw a 27.8% decline from the previous year. Residential buildings represented 43.8% of the floor area but also showed a decrease of 10.2%.
Amid a challenging year-end, the cost of construction showed an upward trend. The average cost per square meter in December 2024 was P11,478.75, a 14.7% increase from P10,010.26 in December 2023. Residential buildings had the highest average cost of P11,849.09 per square meter, followed closely by non-residential constructions at P11,190.94.
Residential condominiums posted the highest average cost at P12,751.80 per square meter, while container van houses and other low-cost structures reported the lowest costs at P5,084.32 per square meter.
Among non-residential types, institutional buildings had the highest average cost of P14,528.40 per square meter, while agricultural buildings remained the most affordable at P5,607.51 per square meter.