Construction sector remains major growth driver – gov’t

Manila — The value of private sector construction projects in the first quarter of 2011 jumped by 11.6 percent year-on-year to P52.8 billion, the National Statistics Office reported.

The NSO data also show that the value of newly built residential and non-residential structures — including additions and repairs – approved from January to March was 10.5 percent higher than the P47.8 billion recorded in the previous quarter.

The government continues to look at the construction industry to remain as a major driver of growth in the gross domestic product, which grew by 4.9 percent in 2010.

According to the National Statistical Coordination Board, the construction industry continued to post gains in the first quarter with a growth rate of 8.9 percent year-on-year.

However, based on the number of approved building permits, first-quarter private construction projects went down by 5.5 percent year-on-year to 28,347 permits.

But compared to the previous quarter, the number of approved permits increased by 23.9 percent from 22,879.

Residential projects grew in value by 32.6 percent to P28.2 billion, but the number of permits decreased by 10.9 percent to 20,784.

With a total floor area of 3.3 million square meters, residential projects chalked up an average cost of P8,654 per square meter.

Single-type units continued to make up the most number of residential building projects with 18,573 approved permits or some nine-tenths of the total for residences.

Single-type units accounted for P13.3 billion, covering a total floor area of 1.7 million sqm at an average cost of P7,608 per sqm.

Apartments and accessories made up the second-biggest batch with 1,538 approved permits or 7.4 percent of all residential projects in the first quarter.

These projects were valued at an estimated P4.2 billion with a total floor area of 571,100 sqm or an average cost of P7,354 per sqm.

Further, non-residential projects represented a total value P19.4 billion or a decrease of 13-percent over the same quarter of 2010. /INQUIRER