AUTHORIZED building permits rose 1.1% year over year in May, driven by modest growth in residential construction initiatives, the Philippine Statistics Authority reported.
Initial figures indicated that building projects encompassed by the permits totaled 16,282 in May, compared to 16,105 a year prior.
This marginally exceeded the 0.6% increase recorded in May 2024 and the adjusted 8.2% drop in April.
In May, construction initiatives covered 3.22 million square meters (sq.m) of floor space, down 17.8% year on year from 3.92 million sq.m.
These authorized building projects were assessed at P42.09 billion, reflecting a 22.7% decrease from the previous year’s value of P54.48 billion.
The rise in construction signifies a boost in economic performance, Emmanuel J. Lopez, a professorial lecturer at the University of Santo Tomas Graduate School, stated in an email.
“In particular, a favorable increase in investment expenditure ultimately resulting in job growth, supported by heightened investment,” he remarked.
Permits for residential projects, which constituted nearly 70% of the overall total, increased by 10.4% in May to 11,331.
These projects were valued at P21.25 billion, a decrease from P25.67 billion a year before.
Applications for apartment buildings surged 31.7% to 1,397, while applications for duplex or quadruplex dwellings nearly tripled to 250.
Single-family homes, representing 85.3% of the residential segment, rose 6.3% year on year to 9,664.
Conversely, nonresidential projects plummeted 14.9% year on year to 2,930 permits, down from 3,443 in May 2024. This made up 18% of all permits.
Nonresidential projects associated with the permits were appraised at P16.80 billion, decreasing 23.2% from the previous year.
Additionally, sanctioned commercial construction applications dropped 14.5% to 1,994, comprising 68.1% of all nonresidential projects.
Institutional building permits fell sharply by 23.9% to 488, while industrial permits experienced a slight increase of 0.8% to 264.
In May, sanctioned agricultural projects decreased by 20.7% to 96, whereas other nonresidential initiatives increased by 2.3% to 88.
Permits for expansions, or construction that enhances the height or space of an existing structure, declined 17.3% to 546 approvals.
Conversely, renovation and repair permits amounted to 1,086 in May 2025, reflecting a 17.6% decrease from the previous year and valued at P2.61 billion.
Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the highest number of sanctioned construction projects in May 2025, accounting for 25% of the total with 4,063 permits.
This was followed by Central Luzon (20.2% share with 3,290 permits) and the Ilocos Region (8.8% share with 1,425 permits).
Mr. Lopez indicated that the surge in employment would drive an increase in consumer spending, which is a crucial factor in the country’s economic expansion. — Abigail Marie P. Yraola
