According to the Construction Materials Retail Price Index (CMRPI) in the National Capital Region, there has been a significant increase in the price of construction materials in 2022. At the same time, pricing of construction materials slowed down during the last two months of the past year compared to 2021.
Annual CMRPI increment in December 2022
According to the Philippine Statistics Authority (PSA), the pace of construction material increase in Metro Manila had a slower rise in December 2022 compared to previous months. The prices took a dip from 6.2% in November to 5.6% in December 2022. Moreover, miscellaneous construction materials decreased from 10.1% to 8.9%.
Last year, carpentry materials had a 2.9% increase, electrical materials at 3.3%, painting, and related compounds at 5.2%, plumbing materials at 5%, and masonry materials at 4.4%. Despite the slow price increase in December, there is a significant increase in the overall prices of construction materials compared to 2021.
From 1.6% in 2021, prices of construction materials jumped to 5.8% in 2022. With the current inflation rate this year and the constant price increase in materials, construction materials might have a significant all-time increase this 2023. Filipinos wanting to build their homes might find it a challenge to fulfill this goal with the construction process more expensive than ever.
Construction costs in the Philippines
According to the PSA, the cost of construction per square meter in the Philippines is around PHP 10,000 to PHP 11,000. Aside from construction costs, homeowners should also consider location, materials, fees, construction methods, and finishing before as they plan to build their own homes.
Apart from these costs, architect fees can also leave a dent in anyone’s pockets. Experts say that architects’ fees can go at a minimum of 10% of the total house construction cost. On the other hand, labor costs are paid hourly, and the average rate for laborers is around PHP 300 – PHP 800 every day, depending on the level of their skills.
Of course, taxes should also be considered when building a home. Local Transfer Tax, Documentary Stamp Tax, Real Property Tax, and other the annual fees should be taken into account when building your home.
These expenses are just estimates of the various components of house construction. In most cases, there are other unforeseen and uncontrollable factors that affect the actual build. So it is wise to make sure there is budget set aside for such occurrences. Location, timeframe, and finishing can also vary in how much you will pay when constructing a home. There are a lot of other factors that can increase the cost of building a home in the Philippines.
With the constant increase of construction materials, taxes, and other costs, the best option for potential homeowners is buying their first home with a reputable house and lot development in the Philippines.
Why buying a house is the better option
Move in anytime
Unless you buy a pre-selling unit, you can move into your new house once the turnover is finished. Buying is the best option if you are in a crunch and need a house immediately ready. One resource that you will never get back is time. Buying a home can make your homeownership process faster and more efficient.
No unexpected costs
Construction plans may change, and material costs fluctuate over time. Because of these factors, there could be unexpected costs when building a house. On the other hand, prices are constant when buying a house and lot in the Philippines. Once you pay the reservation fee and downpayment, there are no longer additional charges.
All you have to do is move in
When building a house, you must wait at least a year to finish it. With this timeframe, you are responsible for monitoring your house construction progress and checking if the plan is being followed. Apart from inspection, you also need to spend considerable time with the necessary paperwork and pay for the fees that come with building your house.
These fees include water connection, power connection, taxes, land title transfer, and everything else. Buying a house and lot from a reputable real estate developer gives you the luxury of not doing any of these tasks. Sure, you can visit the ongoing construction of your home from time to time, but you don’t have to manage anything.
Real estate developments have engineers, contractors, and laborers working for you. You can also ensure that these homes are made from high-quality materials, so you don’t have to worry about the structure of a home, no matter the price bracket.
In some cases, major real estate developers have architects and interior designers that are ready to assist you with your needs. They provide the expertise and experience in seeing you through your home vision.
Location
Your home’s location can determine the price of your property. The sad thing about building your home nowadays is that few residential lots are left near primary locations. And if you ever find one, the cost of the land may already be steep and out of your budget range. Trying to build a home within the lot will come out more expensive than just buying a home. Residential lots that are offered at lower costs may be outside or far from major cities.
On the other hand, reputable real estate projects make sure that they are strategically located in areas near schools, hospitals, places of worship, and other nearby establishments.
Besides having an excellent location, buying a house from a real estate developer gives you exclusive amenities that you and your family can use. You might find a place near a basketball court or village park. However, the better deal is owning a home within a gated community complete with lifestyle amenities like basketball court, clubhouse, swimming pool, playground, as well as wellness features like jogging paths, open parks and gardens and so much more — for the exclusive use of the homeowners.
No substandard materials
While there are real estate developers that make cost-efficient houses, they are not considered substandard. On the other hand, known developers would never let a house be constructed out of substandard materials. When it comes to the house design, what they market is what you will actually get from a reputable developer.
On the other hand, this cannot be said when building your house. To ensure that everything is going as planned, homeowners should be on top of things or can spend a ton in hiring professionals to manage the house build for you. Unfortunately, there are fraudulent contractors out there who are out to make a quick buck so it is imperative to give time and efforts in choosing the right people to do the job for.
Which real estate development should you choose?
Camella has been the trusted and preferred real estate brand for over 45 years. In close to five decades, Camella has already built over 500,000 homes for Filipino families all over the country. Rather than building your home from scratch, you should consider investing in a reputable developer known for years of experience and expertise. Camella has been tested, trusted, and chosen by over half a million families nationwide.
