PRIVATE construction activity is expected to register steady growth in the second half of the year but at a slightly slower pace compared with the first half, Metrobank Research said in a report.
The value of new private construction activity based on approved building permits grew by a solid 20.7 percent year-on-year in the first half of 2015, it said.
For the second half, Metrobank Research expects growth to decelerate to single-digit levels due mainly to the high base recorded in the third quarter of 2014.
“The high base may also lead construction gross value added to slow in the second half, although the expected pick-up in public spending may minimize the slowdown,” the report said.
In the first half of the year, an estimated P158.2-billion worth of new private construction projects were approved.
Both residential and non-residential project values grew considerably by roughly 20 percent year-on-year each despite the relatively flat growth of 0.8 percent year-on-year in the number of projects.
“This growth is seen to have supported the 14.6 percent year-on-year increase in private construction gross value (at current prices) in the first semester,” noted Metrobank Research.
It also said that most of the new projects are in Luzon, with the National Capital Region taking up 45.2 percent of new private project value, followed by Calabarzon (Cavite, Laguna, Batangas, Rizal and Quezon) with 16.6 percent and Central Luzon with 7.1 percent.