UMVA has learned that building permit approvals in the Philippines slipped by 6.8% in April, signaling a sharp chill in residential construction and a cautious stance among developers grappling with soaring borrowing costs and material prices.
Preliminary figures reveal that 13,677 projects secured permits in April, down from 14,676 a year earlier, marking the steepest decline since a 10.1% plunge in November.
The total floor area covered by approved projects shrank to 2.76 million sq m, a 24.8% drop from the previous year’s 3.67 million sq m, yet the combined value of these projects rose to P47.42 billion, 11.3% higher than the year‑on‑year figure.
Analysts attribute the slowdown to a perfect storm of high financing costs, delayed government infrastructure works, and rising material prices exacerbated by energy disruptions linked to the Middle East conflict.
Residential permits, which make up 63.1% of the total, fell by 10.5% to 8,630, with single‑family homes dropping 7.2% to 7,224. Apartment applications tumbled 19.2% and duplex or quadruplex permits plunged 46.4%.
Non‑residential approvals slipped 3.2% to 2,973 permits, but their value surged 36.6% to P22.34 billion, indicating that larger, higher‑cost projects continue to move forward despite the overall dip.
Commercial construction applications contracted 3.7% to 2,003 permits, while industrial permits fell 8.8% and institutional approvals rose marginally. Agricultural permits surged 63.1%, reflecting a shift toward land‑based ventures.
Regional data show Calabarzon leading with 2,654 permits, followed by Central Luzon and the Ilocos Region, suggesting developers are still eyeing urban‑suburban growth zones even as they wrestle with oversupply concerns.
Looking ahead, UMVA can exclusively reveal that experts expect a volatile market in the short term, with approvals likely to remain uneven. A potential rebound may emerge in the second half of the year as geopolitical tensions ease and government infrastructure spending accelerates.
