The construction sector had a total of 37,845 construction activities in the 3rd quarter. This was an 18.1% decline year on year from last year’s total 46,225 constructions. <\/p>\n\n\n\n
In terms of value, construction value decreased by 4.4% to P114.01 billion in Q3 2023. A total of 67.1% or 25,411 of those were residential buildings, which experienced a bigger 24.8% yearly decrease. Single-type houses represented 85.5% of total residential constructions. <\/p>\n\n\n\n
Non-residential constructions increased by 3.1%, with commercial buildings leading at 71.2%. Additions to existing structures rose by 5.3%, while alterations and repairs saw a 10.2% decline. CALABARZON, Central Visayas, and Central Luzon were the top three regions in construction volume.<\/p>\n\n\n\n
Our View: <\/strong>The year-on-year decline in Q3 construction activities warrants observation, given its pivotal role in the Philippine economy. This sector holds substantial weight, contributing an average of 5% to the annual GDP and representing a significant share of 15.2% in total industry output. <\/p>\n\n\n\n A potential contributing factor to this decline could be the influence of a higher baseline set by the remarkable 22.6% surge in Q3 2022 constructions. Looking ahead, the Philippine construction sector presents promising prospects, positioning<\/p>\n\n\n\n the nation as one of the fastest-growing construction markets globally. Forecasts by foreign institutions such as Oxford Economics and Aon Global Construction and Infrastructure underscore this optimism, projecting an impressive average growth rate exceeding six percent annually. The anticipated growth is expected to be primarily driven by non-residential initiatives, particularly through the implementation of public-private partnerships (PPPs) aimed at fostering robust infrastructure development. <\/p>\n\n\n\n As the sector navigates and recalibrates following recent challenges, the long-term trajectory continues to suggest a bullish outlook.<\/p>\n\n\n\n