APPROVED building permits declined 2.5% in February, a turnaround from the 4.8% growth posted a year earlier, the Philippine Statistics Authority (PSA) said in a report.
Citing preliminary data, the PSA said building projects covered by the permits numbered 14,440 in February, lower than the year-earlier 14,809.
The decline recorded in February was less steep than the 12.8% contraction a month earlier.
Construction projects represented by the permits were valued at P41.60 billion, down 16.9% from a year earlier.
Permits for residential projects, which accounted for 63.9% of the total, rose 1.2% to 9,223. These projects were valued at P17.38 billion, lower than the year-earlier P23.13 billion.
Single homes made up 84.2% of the residential category with approved permits declining 0.3% to 7,766.
Applications for apartment buildings increased 14.6% to 1,331 while applications for duplex or quadruplex homes were down 24.7% at 113.
In February, nonresidential projects tallied 3,290 approvals, declining 4.7% from a year earlier.
Nonresidential permits were valued at P21.29 billion, falling 0.5%.
Approved commercial construction permits numbered 2,322, down 3.2%. Agricultural projects accounted for 128 approvals, down 4.5%, while other nonresidential works tallied 93 approvals, down 14.7%.
Industrial permits rose 5.3% to 260 approvals, while institutional projects fell 14% to 487 approvals.
Permits for additions fell 4% to 532 in February, while alteration and repair permits amounted to 1,058, down 14.2%.
Calabarzon — composed of the provinces of Cavite, Laguna, Batangas, Rizal, and Quezon — had the most approved construction projects, with 23.3%, followed by Central Luzon (12.4%), and Central Visayas (9%).
By value, construction projects in Calabarzon amounted to P10.42 billion, followed by Central Luzon with P7.83 billion, and the National Capital Region with P4.93 billion.
“Construction activity remains robust, albeit still in need of some support to sustain recent growth momentum. Despite the slower inflation prints, borrowing costs remain relatively elevated, moderating demand for construction activity given that these types of activities tend to require financing,” Metropolitan Bank & Trust Co. Chief Economist Nicholas Antonio T. Mapa said in an e-mail.
“We could see construction activity pick up as borrowing costs decline after Bangko Sentral ng Pilipinas (BSP) finally pushed through with policy easing at their last meeting,” Mr. Mapa added.
At the last Monetary Board meeting the BSP continued its rate-cutting cycle, delivering a widely expected 25-basis-points rate cut. This brought the target reverse repurchase rate to 5.5% from 5.75% previously.
Rates on the overnight deposit and lending facilities were also lowered to 5% and 6%, respectively.
The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from the demolition and fencing permits collected every month by the agency’s field personnel from the offices of local building officials nationwide. — Lourdes O. Pilar