By DERCO ROSAL
Construction activity in the country declined in August due to reduction in residential and commercial building projects, data from the Philippine Statistics Authority (PSA) showed.
The PSA reported that the number of constructions based on approved building permits fell by 7.5 percent to 13,436 in August from 14,521 in the same month last year.
Accounting for over half (64.7 percent), residential buildings reported the highest number of constructions at 8,694 of the total number of constructions during the month.
Despite its significant contribution, it saw a 9.6 percent annual decline from last year's 9,621 constructions, with single-type houses comprising the majority at 7,229 (83.1 percent).
Non-residential constructions ranked second with 2,975 projects (22.1 percent of the total), marking a 3.1 percent annual decline, with commercial buildings making up the majority at 2,058 (69.2 percent).
Additions, alterations and repairs, and other constructions collectively account for 13.2 percent of the total number of constructions.
Compared to the same period last year, additions rose by 7.3 percent, while alterations and repairs dropped by 5.1 percent, and other constructions fell by 12.0 percent.
In August, the total value of constructions rose by 1.1 percent to P43.05 billion, up from P42.59 billion in the same month last year.
Of the total, non-residential building constructions, amounting to P18.31 billion, recorded the highest value, but this marked a 13.0 percent drop from the P21.06 billion recorded in August last year.
Commercial-type buildings led non-residential constructions in value, totaling P7.58 billion or 41.4 percent of the sector's total.
Meanwhile, residential buildings' construction value was P17.66 billion (41 percent of the total), up 12 percent from last year.
Additions, alterations, and other projects totaled P7.08 billion (16.4 percent), with all categories experiencing an average increase of about 18 percent.
Excluding alterations, repairs, and various non-residential projects, the average construction cost in August 2024 was P9,840 per square meter, down 15.9 percent from P11,701 in August 2023.
Residential buildings had the highest average construction cost at P12,079 per square meter, followed by non-residential projects at P10,551 and additions to existing structures at P9,242.
Condominium-type residential units had the highest average cost at P15,753 per square meter, while other types, such as container van houses, had the lowest at P6,558.
In non-residential projects, institutional-type buildings topped the list at P13,398 per square meter, whereas agricultural buildings were the lowest at P6,791.
Reflecting a 1.9 percent annual increase, the total floor area of constructions reached 3.23 million square meters, up from 3.17 million square meters in the same month last year.
Posting 1.73 million square meters, non-residential constructions accounted for more than half (53.5 percent) of the total floor area, but this also marked a 2.0 percent annual decline from 1.77 million square meters in August 2023.
Meanwhile, residential constructions covered 45.2 percent of the total floor area, reflecting a 6.2 percent annual decrease from 1.56 million square meters in the same month last year.