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Construction Activities Remain Poor due to Low Demand

by Philippine Resources - March 22, 2021

Building and construction activity remains poor due to low demand, as shown by a nearly 50% decrease in the value of building works in the fourth quarter of 2020.

According to the Philippine Statistics Authority's Construction Statistics from Approved Building Permits, the total value of constructions fell nearly 47% to P63 billion in the fourth quarter of 2020, down from P118 billion in 2019.

In addition, the figure was lower than the P67.7 billion recorded in the third quarter of 2020. This is despite the fact that the number of building projects fell to 31,026 in the fourth quarter of 2020, down from 39,242 in the same quarter of 2019.

Despite the economy's gradual reopening since last year, demand for construction has yet to resume because workers' capacity remains restricted.

Residential construction projects accounted for 71 per cent of all constructions during the time, with 21,892 overall. This form of building, the majority of which were single-family homes, shrank by 20% each year.

In addition, the value of residential construction fell by 41% to P32.6 billion.

Non-residential projects, mostly commercial structures, have decreased by 29%. At that time, it accounted for 15% of all constructions.

During that time, the value of non-residential constructions fell by 53.3 per cent to P26 billion.

The rest were changes to existing buildings, such as extensions, alterations, and repairs.

Calabarzon continued to have the most construction activity, with 6,368 constructions accounting for 21% of the total. Ilocos and Central Luzon came in second and last, respectively.

However, the National Capital Region, with P13.6 billion in revenue, accounted for 22% of the total.

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