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).

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.

Related posts:

Overseas Filipinos fueling construction boom
Manhattan Garden City: Only a dream
Antel Spa Residences: Pampering at its best
Phinma Properties' Fountain Breeze

With the continued rise in demand for affordable housing in the country, real property developers are shifting to high gear, putting up new houses and condominiums in Metro Manila and nearby provinces at a faster rate.

The sudden jump in demand for real estate from a veritable slump in the late 1990s and early 2000s is being attributed to a renewed interest from one of the most powerful sectors in the worldwide Filipino community today—migrant workers and “balikbayans.”

Motivated by the improving economic outlook in the Philippines, overseas Filipino workers, especially professionals working and living abroad, are fueling consumption boom back home that is fast spilling over to longer-term investment like property—and the real estate industry is equally fast in seizing the opportunity.

At present, real property developers are shifting their sales pitch from local buyers to their more moneyed relatives abroad, taking into consideration the record $10.7 billion in annual remittances.

Big property developers like Ayala Land and MegaWorld have already reaped the bounty of closing sales with overseas Pinoys. These companies have, on the average, experienced a 92-percent rise in net profit from last year that was primarily driven by strong sales of residential condominium and housing projects, and rental revenues from large shopping malls.

“The exciting prospects in the residential market are being boosted by rising demand from migrant workers, improving affordability, low interest rates, and rising middle-class demand,” a report released by an international bank said.

In the Ilocos Region, which is home to many Filipino migrants in the United States and Canada, a new building boom is also being experienced as many balikbayans are constructing their dream vacation and retirement homes.



Image, taken from daylife.com (original from international news agency Reuters), shows a construction worker walking past a banner advertising condominiums for sale at Fort Bonifacio in Taguig, Metro Manila.