Building Permit Approvals Fall in June Amid Rising Costs
- Junnel G
- September 15, 2024
- 7:32 pm
- No Comments
Building permit approvals dropped by 9% in June, primarily due to increasing construction costs, according to the Philippine Statistics Authority (PSA). The PSA reported that the number of building projects fell to 13,170, a larger decline compared to the 5% drop in the previous year.
Despite the drop in approvals, the total floor area of approved projects grew by 7% to 2.66 million square meters, valued at ₱34.16 billion—a 4.4% increase in value from last year’s figures.
Rising interest rates, driven by global economic conditions, have also contributed to higher construction costs, discouraging new projects. Residential building permits saw a 7.5% decline, with Calabarzon leading in approvals, accounting for 21.3% of total permits.
However, economists suggest that anticipated rate cuts could help revive the construction sector in the coming months.
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