Building permit approvals fell by 6.8% in April, driven by weaker residential construction and developers’ caution amid high borrowing and construction costs, according to the Philippine Statistics Authority (PSA) as reported by BusinessWorld.
Preliminary data from the PSA showed that building projects covered by the permits totaled 13,677 in April, down from the revised 14,676 recorded in the same month a year earlier. The decline was attributed to a slowdown in residential building approvals, which account for a significant portion of total permits.
Industry observers noted that developers are holding back on new projects due to elevated interest rates and rising material costs, which have compressed margins. Non-residential and additions/alterations permits also saw declines, reflecting broad-based caution in the construction sector.