Construction activity down 22.4% in Q1

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THE number of constructions in the first quarter of 2020 has declined by 22.4 percent, reaching a total of 30,838 construction activities, records from the Philippine Statistics Authority (PSA)showed.

Central Visayas recorded 4,722 constructions, next to Calabarzon which had the highest number of constructions at 5,600. Ilocos region came third with 3,048 constructions.

By type of construction, residential reported the highest number of constructions during the quarter which totaled 20,515 or 66.5 percent of the total number of constructions.

This type of construction dropped at a faster rate of 25.5 percent than its annual rate in the previous quarter of 13.3 percent. Majority or 89.7 percent of the residential constructions were single-type houses.

Non-residential constructions accounted for 18.7 percent of the total constructions during the quarter. Non-residential constructions also dropped at an annual rate of 10.8 percent. Most or 66 percent of the non-residential constructions were commercial buildings.

Meanwhile, addition, alteration and repair of existing structures had shares of 3.8 percent and 11 percent, respectively, to the total construction activities.

Both types of constructions also declined at an annual rate of 26.4 percent for addition and 19 percent for alteration and repair, which were contrary to their respective annual rates in the same quarter of the previous year.

Value of construction

Moreover, the total value of construction shrank.

The PSA data showed the total value of constructions in the first quarter of the year amounted to 86.1 billion down by 20.1 percent.

Residential building constructions which are valued at P36.5 billion, accounted for 42.4 percent of the total value. This shows a contraction of 19.2 percent from the P45.2 billion construction value posted in the same quarter of 2019.

Construction value of non-residential buildings, on the other hand, amounted to P44.3 billion or 51.5 percent of the total value. This reflects an 18.5 percent decrease from the P54.3 billion value of construction in the same quarter of the previous year.

The value of construction for addition and alteration and repair to existing structures, accounted for P1.7 billion (1.9 percent) and P3.6 billion (4.2 percent), respectively, of the total.

Top three regions

The top three regions that contributed more than half of the total value of constructions were the National Capital Region at P30.4 billion, Calabarzon at P11.6 billion and Central Visayas at P8 billion.

The value of construction activities for these three regions amounted to almost P50 billion.

The total floor area constructed for this quarter was recorded at 7.9 million square meters.

Residential construction accounted for 3.4 million square meters or almost half of the total floor area constructed. (KOC)