Research analysts: Q3 activity solid
THE National Capital Region (NCR) is still the host of most construction activities in the Philippines, based on third–quarter data from the Philippine Statistics Authority (PSA), while a bank research report described construction activity nationwide as still “solid.”
Metrobank research analyst Mabellene Reynaldo described construction activity in the Philippines as still “solid,” despite a 43-percent year-on-year drop, value-wise, in the third quarter of 2015.
Reynaldo cited figures from the PSA, showing that the number of building permits approved in the third quarter rose by 1.7 percent to 30,126 from 29,616 in the same period last year.
Reynaldo noted that almost half or 46.4 percent of construction activity in the third quarter took place in the National Capital Region (NCR).
A weekly market report published by Metrobank Research said the Calamba-Laguna-Batangas-Rizal-Quezon (Calabarzon) Region or Region 4, Western Visayas, Central Luzon, and Davao were the next most active locations in terms of construction activity.
The Metrobank Research said the value of construction activity based from approved building permits reached P80.2 billion for the third quarter of 2015, falling 43-percent from P140.7 billion a year ago.
Reynaldo noted that based on PSA data, the decline was mainly caused by the high base recorded last year, which was driven by the building of hotels and motels in the NCR.
“Expect new private construction activity to remain solid in the fourth quarter, although full-year growth may just be reduced to single digit territory due to the high base,” said Reynaldo.
Citing PSA data, the Metrobank report said the value of residential constructions in the third quarter fell 7 percent to P41.1 billion from P44.2 billion last year.
This was attributed to the smaller value of construction of residential condominiums, which went down by 20.8 percent, and other types of residential buildings, which also declined by 35.8 percent.
Similarly, the value of non-residential constructions slumped by 61.3 percent to P34.3 billion from P88.5 billion a year ago.
“This was largely contributed by the decline in the construction value of commercial buildings (-71.7 percent), particularly the 99.6-percent drop in the construction value of hotel/motel buildings to P0.2 billion from P56.5 billion in NCR Sixth District,” the PSA said.
The value of addition to existing structures also declined by 65.6 percent to P0.9 billion from P2.6 billion last year.
Value of alteration and repair of existing structures also contracted by 27 percent to P3.9 billion from P5.4 billion in the same quarter of 2014.
“The possible pick up in public construction, on the other hand, may provide support to construction value added for this year,” Reynaldo said.