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.