Okay, first off, let me apologize for the journalese headline. There's really no other way to write it except "More people putting up more buildings" or something like that. With that out of the way, let's get to the story at hand.

Well, this increase in building permit applications bodes well for the Philippine economy, particularly concerned industries such as real estate and construction. Despite fears that the global financial crisis is putting an end to the construction boom, the government, led by Vice President Noli de Castro, remains optimistic that the property sector can weather the storm and continue to grow.

Here's an excerpt from a Business Mirror article on De Castro's reaction:

Vice President and Housing and Urban Development Coordinating Council chairman Noli de Castro, reacting to the "boom's over" prognosis for the Philippine property sector, said the housing sector would be able to weather the global financial storm arising from the subprime problem in the United States.

De Castro made the rebuttal after the European Chamber of Commerce of the Philippines noted that the "boom's over" for the real estate industry in the Philippines, as indicated by the entry of speculation into the local property sector.

The Vice President explained that the growth of the real property sector in the Philippines was fueled by the favorable policy environment in the housing sector and the Filipinos' desire to own a home.

It seems that De Castro is right as the latest National Statistics Office report on private building construction shows.

The report says approved building permits nationwide have reached 25,145 in the second quarter of 2008, indicating an increase of 9.3 percent compared with 23,003 applications during the same period in 2007.

Similarly, an increase in applications for both residential and non-residential building construction have been observed.

"Residential building construction went up by 16.9 percent to 18,451 from 15,781 approved building permits during the same quarter of 2007. Non-residential constructions, likewise, increased by 7.5 percent to 2,707 from 2,518 recorded during the same quarter of 2007," the report adds.

Six provinces posted more than a thousand applications each. This list includes Bulacan, with 1,377 applications, Cavite (1,719), Laguna (1,014), Rizal (1,108), Cebu (1,069), and Davao del Sur (1,077).

Here's a piece I wrote for the Business Mirror a couple of years ago. I still find it relevant, so I'm reposting it here. My apologies for the lack of visuals.

With the demand for sturdy low-cost housing steadily rising, attributed in part to the dream of Filipino migrant workers to own their own homes in the motherland, property developers are turning to foreign technologies—such as prefabricated materials—that allow the fast-tracking of construction, thereby cost-efficient.

Not Hilario N. Abbatuan, though. This mechanical engineer from the north says he is sticking to indigenous technologies for housing and good, old and solid concrete to do the job.

Abbatuan, fondly called Larry by friends and family, says he can finish a house in as short a time as 24 hours through a system he has developed—the H.N. Abbatuan Form System.

“With my system, I not only finish a unit faster than the conventional method of constructing a house—from laying down concrete for a foundation to the installation of galvanized iron sheets to form a roof—the house also comes out cheaper by about 30 percent,” Larry says.

Forming dreams

The use of the word “form” in the system’s name is not without basis, Larry explains. It turns out the system relies heavily on forms—much like molds—that dictate how a house will be built and how it will look like.

Larry says the proper name for the system is “cast-in-place” since the foundation, walls and roofdeck—yes, almost all the units he has built since the founding of his company, H.N. Abbatuan Builders, have solid concrete slabs as roofs—are literally cast in place using the forms or molds.

“The Abbatuan System entails the designing of a complete house form that allows the simultaneous concrete pouring of walls, partitions, beams and columns. The effect? Uniform distribution of strength for the whole house,” he explains.

The system does not use hollow blocks and plywood girders, two elements vital in the conventional way of constructing a house that Larry labels as “unnecessary expenses.”

“Construction sites are very chaotic and materials often get bruited about. Hollow blocks, being very weak, crumble easily when care is not exercised. At the end of a construction period, a contractor usually finds himself straddled with the loss of hollow blocks and, thus, more expenses,” Larry points out.

“It’s the same with plywood and other lumber. Once it’s used to form a cast to hold and form concrete, the wood is virtually useless—it can’t be used again,” he adds.

Fast and furious

The Abbatuan Form System is also labor efficient, requiring only 12 workers to build a single 36 square meter to 72 square meter house in 24 hours. Larry also boasts that his company can build a medium-rise apartment building, from foundation to roof, in about 90 days.

Larry’s claim has been proven several times in the recent past, at housing sites in Quezon City, Manila, and Muntinlupa with the help of local governments.

He has also participated in building homes for the less fortunate through the National Housing Authority, which has recognized his system with a certificate under the Accreditation of Indigenous Technologies (AITECH) program of the Housing and Urban Development Coordinating Council.

The goodwill he has fostered with the government, however, is not without its downside. Larry recalls a time he built a mass housing project for a local government but did not get paid.

“I even got sued. But the circumstances leading to this problem is a different story and cannot be talked about—for now,” Larry explains.

At present, Larry is engaged in projects in General Santos City, where he hopes to recover from the aches of projects that failed “through no fault of mine.” He is also on the prowl for a good challenge, someone who can dare him to a contest on who can build a house the fastest.

“I want the chance to prove that the Filipino can innovate and use the products of his considerable intellect to help his countrymen. I am surprised—and disheartened at the same time—to learn that many Filipinos still turn to everything foreign for solutions to their woes,” Larry says, referring to the foreign housing technologies now flooding the market.

“What the Abbatuan Form System proves is, what foreigners can do, the Filipino can do better,” he adds.

In this week's Project of the Week, Cribs and Rides shifts its eyes to the central Philippine city of Cebu, where a renewed interest in real estate is fueling a boom in condominiums and villas. Fuente Triangle Realty Development's Ultima Residences, a 28-story condominium dotted with dramatic foyers, closed circuit cameras for optimum security, and high-speed elevators, is one such project, and it's currently making waves among those interested in settling down permanently in the Philippines' Queen City of the South.

Check out why Ultima Residences is hot:

Discover the ultimate in condominium living at the newest high-rise residential tower located at Fuente Osmeña Boulevard in downtown Cebu City. The Ultima Residences Fuente Tower has 28 innovative floors of quality at every dimension. Homeowners will enjoy the convenience of loft-style living. Unhampered by a permanent floor plan, loft-style residential units afford on substantial open space for flexibility and fluidity of designs. Loft style increases the rooms' capabilities, transforming them into a home or an office.

Here are some fast facts about the project:

Location: Fuente Osmeña Boulevard, Cebu City
Number of floors: 28
Number of units per floor: 19
Average size of units: 60 square meters to 100 square meters
Amenities and features: Closed circuit TV security monitoring, automatic generator set, automatic sprinkler system, Internet connection, video intercom, five high-speed elevators, swimming pool, multi-level basement parking.

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