The local construction industry grew in October, driven by a surge in residential construction and investments in non-residential projects, while average construction costs decreased.
The Philippine Statistics Authority (PSA) reported that the construction sector continued its upward trajectory in October 2024, with a 4.0 percent year-on-year increase in the number of constructions to 13,848 projects.
According to the PSA, this growth is primarily attributed to a surge in residential building constructions, which accounted for the majority of construction projects in October, with 9,003 projects or 65.0 percent of the total.
The PSA said this represents a 5.4 percent increase compared to the same period in 2023. Single-type houses dominated the residential segment, comprising 76.6 percent of all residential constructions.
Non-residential constructions also played a significant role in the sector's performance, contributing 20.7 percent to the total number of projects.
However, this segment posted a slight decline of 2.2 percent year-on-year, with commercial buildings accounting for the majority of projects at 68.9 percent.
In terms of construction value, the sector registered a significant surge in construction value, reaching P44.39 billion in October, a 21.9 percent increase compared to the same period in the previous year.
Non-residential buildings led the way, accounting for 49.0 percent of the total value, driven by a 35.8 percent year-on-year growth in construction value.
The total floor area of constructions in October also expanded by 40.9 percent year-on-year to 3.87 million square meters. Non-residential constructions accounted for the larger share, with 56.3 percent of the total floor area, demonstrating a significant 60.4 percent growth compared to October 2023.
Despite the overall growth in construction activity, the average cost of construction per square meter decreased by 9.7 percent year-on-year to P10,596.33.
Residential buildings recorded the highest average cost at P11,448.35 per square meter, while non-residential constructions averaged PhP 9,941.63 per square meter.