By Jun Sanchez*
THIS entry is based on the study this author made on the survey released this April by the National Statistics Office on all types of private building construction in the Philippines. The study focused on residential construction since it is meant for prospective Pinoy homeowners and residential developers.
The survey is based on the number of building permits approved by the local building officials in all cities and municipalities in the Philippines; the projects are described as “started.” No figure was given as to how many were finished, still in progress or discontinued. The study shows that:
- Residential projects account for 70% of all private construction in the Philippines. Of which, 85% are single houses, 3% are duplex/quadruplex/townhouses, 9% are apartments and 3% are condos.
- Residential projects have a short boom-bust cycle, i.e., growth cannot be sustained. It’s moderate for single houses and apartments but for townhouses and condos, the cycle is volatile. They enjoy massive growth for a year or two only to plummet later. Condo construction has been declining massively since 2005, indicating a glut in this segment. This, however, is a national trend and does not classify projects into Class A, B or C.
- Apartment construction grows steadily indicating that there’s a growing demand for it from Pinoys who have yet to own their homes.
- National Capital Region ranks only 4th. Manila is last in three residential types among the six districts but 4th in condos.
- CALABARZON ranks first. In Cavite alone, over 1,700 condos were started. Compare that with 23 condos in NCR’s District 5 that includes Makati. Cavite also accounts for 25% of all quadruplex and townhouses in the eight regions.
- Central Visayas is 2nd. Cebu is way ahead of the other provinces in this region. Its output is equivalent to 71% of NCR’s total output.
- Central Luzon is 3rd. Bulacan overtook Cavite with over 1,900 condos, 29% of all condos.
- 5th, 6th and 7th are Davao Region, Ilocos Region and Western Visayas, respectively. The number of their condominium projects is also peculiar. 174 condos were started in Davao del Sur, 208 in Pangasinan, 135 in La Union and 130 in Iloilo. Ranked 8th is Northern Mindanao.
- Not in the top eight, 125 condos were started in the Cordilleras, 57 in Mimaropa, 39 in Bicol, 36 in Soccsksargen and 23 in Caraga in 2004.
You failed to mention the values involved. There are of course lesser number of projects in the big cities, but their values are very enormous compared to those in towns and small cities. One big project in Manila, or NCR, and also in Metro Cebu may compare in value to probably fifty to one hundred projects elsewhere. This is where you miss the point. Sorry for this comment. But, by the way, thanks for the information.
kulang ito. simple lang ang dapat nyo malaman about philippines construction industry.
OLIGOPOLY! yun lng!
lahat ng aspects about it is that it is controlled by a few powerful and influential people. from lot price to construction materials to, govnmnt lagays etc
hindi na importante yan mga chorva chorva na market research na yan. ang bottom line dyan ay yun base ng system which is Oligopoly talaga.
example lang ah! hindi ba kayo nagtataka eh 3rd world country eto eh mas mahal pa lupa dito sa pinas kesa sa america eh. anu ba yan
importante lng d2 sa construction industry is that u play the game well and that is to play it dirty ganun lng!
insider ito noh haha
I'm interested in how residential property was classified in the study. What's the difference between an "apartment" and a "condo" for instance? In the US, a condo is an apartment that one owns. I'd like to see a copy of the full study.
Excellent research! I was wondering if i could get a copy somehow... Thanks very much!
It is not peculiar in La Union since a lot of Ilocano Migrants prefer to have a more convenient and secured home while staying in Philippines during their vacation.
Could someone provide the statistics on how may Filipino family lost some of their money out of these projects?
The downside of owning a condominium is that you don't usually own the land where the units were built. Plus you don't have the sprawling gardens you've always dreamt about. It's like renting the lot, albeit for a long time, i.e. until the condo is finally demolished, or God forbid, gets burned down. (raffyboy@yahoo.com)
Please forward to me copy of the study
on housing issues in the Phil.
Could I get a copy of the study?
My apology for this late reply. I didn't realize that many have already commented until I stumbled upon this article by first going thru someone else's blog.
Mr. de Dios, no need to apologize. I intentionally did not include the values involved. I was after the number of residential projects regardless of how modest or grand they are. You are correct in saying that a single project in NCR or Metro Cebu may be equivalent to 50 or even 100 projects elsewhere, but that’s not the point. The point is, by constructing certain residential types in areas where they are not appropriate, the homebuyer may not get the things that he values most in a home – time, convenience, space, privacy or peace and quiet. Since no single residential type can offer all these benefits (each has its own pros and cons), it’s not difficult to imagine, given the sheer number of condos, particularly in Bulacan and Cavite, that many homebuyers bought homes that did not enhance their lifestyle.
I’m not saying that condos should not be built in the provinces. I’m sure many have been finished and delivered to buyers who are now enjoying the convenience of and the time they save by living in these condos. But given their numbers, how many of them are within short walking or commuting distance from work, schools, banks, supermarkets, wet markets, hospitals, malls or barber shops. More than a roof over one’s head, a home should enhance one’s quality of life. And the worst mistake any Pinoy homebuyer can make is to buy into the mistake of residential developers who build projects in places where they are not appropriate. Strawberry shrubs may flourish in Baguio City but not in Pasay City.
Hello RJ, I apologize if you find my post incomplete. I’ll try better next time.
Thanks a lot for your insider information, it’s very insightful.
Mike, I share your sentiment. Here in the Philippines, apartments are built by investors for the purpose of renting them out. Condo units, on the other are usually bought by buyers for their own personal use. Though, there are also investors who opt to buy condo units to be rented out.
Thanks a lot, Stephen. I think I already sent you a copy via e-mail.
Thanks a lot, Jhunie, your observation is very much appreciated. Like you, I also wonder how many Pinoys lost their money in some of these projects. And I’m not singling out condominiums and townhouses on this issue. Single houses in subdivisions are also sold on a pre-selling basis and many were not finished or worse, did not even take off. Take the case of that large subdivision project in Laguna where Uniwide put up a branch. I haven’t passed by that area in a while, but the last time I did, there was hardly any improvement since it was first sold in early ’90’s. Anyone who can provide info on the progress of residential development in Manila Southwoods?
Hello, Raffy, I agree with you that owning a condo has its downside. But depending on what a homebuyer values most, that downside can be more than offset by its upside – Imagine walking or taking a short commute to school; of taking a short trip in an elevator and taking just several steps to withdraw cash from an ATM machine or grabbing a quick snack in a nearby convenience store in the dead of night. For some people, time and convenience are more important than space, privacy and peace and quiet.
But how can a condo buyer enjoy the foregoing two benefits if the project is built in an area that is remote with little to offer in terms of job opportunities and conveniences. That’s the whole point of this article.
Hello Mr. Salunday. If I haven’t yet, kindly email me via junsanchez2003@yahoo.com. Thanks
I'm sorry for this late reply, I didn't realize that many have already commented until I stumbled this thru someone else's blog.
Mr. de Dios, no need to apologize. I intentionally did not include the values involved. I was after the number of residential projects regardless of how modest or grand they are. You are correct in saying that a single project in NCR or Metro Cebu may be equivalent to 50 or even 100 projects elsewhere, but that’s not the point. The point is, by constructing certain residential types in areas where they are not appropriate, the homebuyer may not get the things that he values most in a home – time, convenience, space, privacy or peace and quiet. Since no single residential type can offer all these benefits (each has its own pros and cons), it’s not difficult to imagine, given the sheer number of condos, particularly in Bulacan and Cavite, that many homebuyers bought homes that did not enhance their lifestyle.
I’m not saying that condos should not be built in the provinces. I’m sure many have been finished and delivered to buyers who are now enjoying the convenience of and the time they save by living in these condos. But given their numbers, how many of them are within short walking or commuting distance from work, schools, banks, supermarkets, wet markets, hospitals, malls or barber shops. More than a roof over one’s head, a home should enhance one’s quality of life. And the worst mistake any Pinoy homebuyer can make is to buy into the mistake of residential developers who build projects in places where they are not appropriate. Strawberry shrubs may flourish in Baguio City but not in Pasay City.
Hello RJ, I apologize if you find my post incomplete. I’ll try better next time.
Thanks a lot for your insider information, it’s very insightful.
Mike, I share your sentiment. Here in the Philippines, apartments are built by investors for the purpose of renting them out. Condo units, on the other are usually bought by buyers for their own personal use. Though, there are also investors who opt to buy condo units to be rented out.
Thanks a lot, Stephen. I think I already sent you a copy via e-mail.
Thanks a lot, Jhunie, your observation is very much appreciated. Like you, I also wonder how many Pinoys lost their money in some of these projects. And I’m not singling out condominiums and townhouses on this issue. Single houses in subdivisions are also sold on a pre-selling basis and many were not finished or worse, did not even take off. Take the case of that large subdivision project in Laguna where Uniwide put up a branch. I haven’t passed by that area in a while, but the last time I did, there was hardly any improvement since it was first sold in early ’90’s. Anyone can provide info on the progress of residential development in Manila Southwoods?
Hello, Raffy, I agree with you that owning a condo has its downside. But depending on what a homebuyer values most, that downside can be more than offset by its upside – Imagine walking or taking a short commute to school; of taking a short trip in an elevator and taking just several steps to withdraw cash from an ATM machine or grabbing a quick snack in a nearby convenience store in the dead of night. For some people, time and convenience are more important than space, privacy and peace and quiet.
But how can a condo buyer enjoy the foregoing two benefits if the project is built in an area that is remote with little to offer in terms of job opportunities and conveniences. That’s the whole point of this article.
Hello Mr. Salunday. If I haven’t yet, kindly email me via junsanchez2003@yahoo.com. Thanks
My apology for this late reply. I didn't realize that many have already commented until I stumbled upon this article thru the Property Guide section.
Mr. de Dios, no need to apologize. I intentionally did not include the values involved in these projects. I was after the number of residential projects regardless of how grand or modest they are. You are correct that a single project in NCR or Metro Cebu may be equivalent to 50 or even a hundred projects elsewhere, but that's not the point. The point is, by constructing residential types in areas where they are not appropriate, the home buyer may not get the things that he values most in a home - is it time, convenience, space, privacy or peace and quiet? Since no one residential type can offer all these benefits (each type possesses its own unique inherent advantages and disadvantages that others do not and vice versa), it's not difficult to imagine, given the sheer number of condos, particularly in Bulacan and Cavite, that many Pinoys who bought into some of these projects did not enhance their lifestyle.
I'm not saying that condos should not be built in the provinces. I'm sure many have been finished and delivered to their buyers who are now enjoying the convenience of and the time they save by living in these condos. But given their staggering number, how many of these projects are within short walking or commuting distance from work, schools, banks, supermarkets, wet markets, hospitals, malls or barber shops?
More than a roof over one's head, a home should enhance one's quality of life.
Hello RJ, I apologize if you find my article incomplete. I will try to do better next time. Thanks a lot for your insider info; they're very insightful.
Mike, I share your sentiment. Here in the Philippines, an apartment building is usually a two-story structure divided into a number of dwelling units built by investors for the purpose of renting each unit out.
Condominium buildings, on the other hand, range from mid-rise (5-stories?) to high-rise (+-40 stories?) structures with each floor typically having 10 or more units. Most units are sold to buyers for their own personal use. Though, there are also investors who buy condo units and rent them out.
Thanks a lot, Stephen. I think I already sent you a copy via e-mail.
Thanks a lot, Jhunie, your input is very much appreciated. Like you, I also wonder how many Pinoys lost their money in these projects. I'm not singling out condos and townhouses with this problem. Subdivisions that sell houses and lots or just lots are also sold on a pre-selling basis and many were not finished or did not even take off.
Hello Raffy, I agree with you that owning a condo has its downside (please see also my reply above to Mr. de Dios). But depending on what a home buyer values most, that downside can be more than offset by it's upside.
In a well-located condo, imagine the time saved and the convenience of walking or taking a short commute to work or to school; of taking a short trip in an elevator and taking just several steps to withdraw cash from an ATM machine or grabbing a snack in a nearby convenience store in the dead of night.
For some people, time and convenience are more important than space, privacy and peace and quiet.
But how can a condo buyer enjoy those two benefits if the project is built in an area that is remote with nothing or little to offer in terms of commercial establishments, varied job opportunities and conveniences? That's the whole point of this article.
Mr. Salunday, if I haven't yet, kindly e-mail me via junsanchez2003@yahoo.com.
Thanks a lot
I have to agree with Raffy Canlas here its so true about having a condo, but the upside is that like here in South Africa living in an apartment or condo is that they have a sense of security and safety than living in a house with ones huge gardens.
It's very useful for my research. I would appreciate for more supporting figures:
total constructed vs market in a per location basis.
Your dissertation is a good eye opener for a developer.
Kindly email me a copy this article.
It's very useful for my research. I would appreciate for more supporting figures:
total constructed vs market in a per location basis.
Your dissertation is a good eye opener for a developer.
While condos are an excellent option for both people who desire home ownership but cannot afford higher-priced single homes, and developers/townships who are just plain running out of space, please remember that ALL residential expansion can only besustained by economic expansions.
If there are no jobs to support the homeowners in a particular location, it makes no sense to own a a home there. Look at the places in the USA that grew like crazy during the 'boom' - bedroom comunities barely suppurted by local industry. Now that jobs are drying up, these once booming residential areas are ghost towns.
It's really nice information about different projects for RP construction.General contractor new york tend to have some of the most innovative sustainable design and green building projects in the country.
Great report! I'd appreciate a copy.
Thanks.
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Good and bad news regarding the UK construction industry. British construction activity contracted for a 21st month running in November but the pace of decline eased and new order volumes rose for the first time since February 2008, a survey showed on Wednesday. The Chartered Institute of Purchasing and Supply/Markit construction contracts PMI index rose to 47.0 in November, its highest since August, from 46.2 in October. The recent rise in house prices boosted residential construction, which expanded for a third month running and at its fastest rate in over two years. But both commercial and civil engineering sectors reported further declines and employment overall declined for an 18th consecutive month.
could you please furnished me
electronic copy of the study
on housing issues.
thank for response.
Such information about the cycles the construction industry has in Philippines are very important for developers and equipment rental companies. This information along with the other statistics can help them prepare their entry on the market but can also let them know when to back up.
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The final data set provides updates to the 2007 Quarterly Special Releases on construction statistics. The sources of updates are additional approved building permits collected after cut-off dates because of data collection constraints. These additional documents were not yet available for inclusion in the tabulation of data on designated target dates.
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"I intentionally did not include the values involved. I was after the number of residential projects regardless of how modest or grand they are. You are correct in saying that a single project in NCR or Metro Cebu may be equivalent to 50 or even 100 projects elsewhere, but that’s not the point. post pregnancy tummy The point is, by constructing certain residential types in areas where they are not appropriate, the home buyer may not get the things that he values most in a home – time, convenience, space, privacy or peace and quiet."
What???
This study shows that Philippine is a construction developing country and it can help a lot of investors decide to bring their money here. This will generate a lot of work places even for those in the bathtub remodeling sector and it also shows that people are finally able to afford buying an apartment.
So, why does construction of certain residential types behave erratically while others do not? Inherent geographic characteristics of the region, scarcity and cost of land, population density and availability of commercial establishments, job opportunities and conveniences determine the suitable residential type in the areas therein. Refusal or failure to acknowledge this fact resulted in erratic construction of certain residential types. Take Manila for example. Scarcity and high cost of lots no longer make it ideal for single houses. Its density and abundance of commercial establishments, offices and conveniences currently make condos the ideal housing project in Manila. The same is true in Makati City. See how the other regions performed, especially CALABARZON and Central Luzon.
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Sooner or later, construction of new building will be finished because the economy moves one way or another and of course, the number of people in certain communities increases each year...
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Apartment construction grows steadily indicating that there’s a growing demand for it from Pinoys who have yet to own their homes.
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