Approved building permits fall 8.5% in July

Approved building permits declined 8.5% year on year in July as residential construction projects slumped, the Philippine Statistics Authority (PSA) reported.

Preliminary data showed building projects covered by the permits numbered 15, 395 in July from 16,821 a year earlier.

This was a turnaround from the 12.3% growth in July 2024 and the revised 14.9% expansion in June.

For that month, constructions projects covered 3.47 million square meters (sq.m) of floor area, slipping 2.1% year on year from 3.54 million sq.m.

These building projects that received approval were valued at P44.54 billion, 7.5% lower than a year earlier when it reached P48.16 billion.

Permits for residential projects, which accounted for 66% of the total, declined 8.5% to 10,157 in July.

These projects were valued at P19.77 billion, against the P19.74 billion a year earlier.

Single homes made up 79.1% of the residential category with approved permits declining 10.9% to 8,034.

Applications for apartment buildings rose by 2.5% to 1,957 while applications for duplex or quadruplex homes contracted by 3.1% at 155.

On the other hand, nonresidential projects tallied 3,205 approvals in July, decreasing 8.8% from a year earlier.

Nonresidential permits were valued at P19.84 billion, down 16.6% from P23.78 billion a year earlier.

Approved commercial construction permits numbered 2,150, down 11.3%.

Permits for additions — construction that increases the height or area of an existing building — dropped 16% to 429 in July, while alteration and repair permits totaled 1,133, down 15%.

Industrial permits rose 27.4% to 302, while institutional projects fell 12.1% to 582 approvals.

Agricultural projects totaled 89 approvals, down 19.1%, while other nonresidential works reached 82 building permit approvals, down 2.4%.

Calabarzon (Cavite, Laguna, Batangas, Rizal, and Quezon) had the most approved construction projects for that month accounting for 21.8% of the total with 3,350 permits.

This was followed by Central Luzon (17.5% share with 2,697 permits), and Central Visayas (7.9% share with 1,210 permits).

By value, Calabarzon cornered P8.96 billion worth of construction projects, followed by the National Capital Region (P7.82 billion), and Central Luzon (P6.61 billion).

The PSA said construction statistics are compiled from the copies of original application forms of approved building permits as well as from demolition and fencing permits collected monthly by the agency’s field personnel from the offices of local building officials nationwide.

Source: Business World

Negros reunited

The Visayas’ new frontier for renewables, warehousing, and BPO

Negros Island is rewriting its economic story. Once known as the country’s sugar bowl, the newly reestablished Negros Island Region (NIR) is emerging as the Visayas’ renewable energy capital, capturing nearly half of all approved investments in the second quarter (Q2) of 2024.

For decades, residents of Negros Occidental and Negros Oriental were compelled to travel to Iloilo or Cebu for regional government services due to the island’s segregation between Western and Central Visayas. To address this, President Ferdinand R. Marcos, Jr. in 2024 officially reestablished the NIR and fulfilling a long-standing aspiration of Negrenses.

Unlike previous executive attempts, RA 12000 provides a stronger legal and administrative framework, enabling full decentralization of government functions and streamlined inter-agency coordination across Negros Island and Siquijor. The unified regional administration is designed to accelerate investment, stimulate economic growth, and enhance regional competitiveness by harnessing the island’s full potential.

Prior to the creation of the Negros Island Region, Negros Occidental residents were included in Western Visayas, while Negros Oriental and Siquijor residents were included in Central Visayas. In the 2024 census, the exclusion of these provinces resulted in a notable population decline in Central Visayas (-3.9%) and Western Visayas (-1.8%), impacting on the regional demographic profiles and planning considerations.

Beyond the political symbolism, the impact is already visible on the ground. From billion-peso solar farms and biomass facilities fueling the energy grid, to Bacolod’s growing role as a logistics and outsourcing hub, Negros is positioning itself as one of the most dynamic growth centers in the Visayas. This is a clear shift that signals both opportunity and challenge for investors.

AGRICULTURE POWERS NIR’S TRANSITION INTO A DYNAMIC AGRO-INDUSTRIAL AND RENEWABLE ENERGY POWERHOUSE

NIR’s strong agricultural base makes it a hub for agribusiness and value-added industries, fueling demand for logistics and infrastructure expansion. In 2024, the Agriculture, Forestry, and Fishing (AFF) sector generated P83.39 billion, ranking second in the Visayas. Negros Occidental, known as the “Sugar bowl of the Philippines,” also accounts for more than half of national sugar production, supported by 13 sugar mills and six refineries, including Victorias Milling the largest integrated mill and refinery in the country.

Sugar by-products, particularly bagasse and cane trash, have become critical inputs for renewable energy. Biomass facilities now form a cornerstone of the island’s power mix, contributing to the fact that 99.1% of Negros Occidental’s electricity production comes from renewable sources.

The clean energy transition has also reshaped the investment landscape. In Q2 2024, NIR secured P86.5 billion in approved foreign investments, equivalent to 45.6% of the national total, with the bulk directed toward renewable energy. Furthermore, other key projects include AboitizPower’s 173-MWp Calatrava solar farm, Citicore’s 100-MWp Silay facility, and the P6.9-billion Bacolod-Bago solar plant (150 MWp) slated for completion in 2025. In total, more than 1,000 MW of renewable capacity is in the Department of Energy (DoE) pipeline for Negros.

COST COMPETITIVENESS AND NEW INFRASTRUCTURE FUEL BACOLOD’S WAREHOUSING GROWTH

Building on this agricultural and green foundation, the NIR is also seeing steady growth in industrial and logistics activity, particularly in Bacolod City. Demand is driven by its proximity to ports, airports, and major urban centers. Most occupiers are engaged in logistics, distribution, and personal storage, with rising interest from FMCG firms targeting the local consumer market.

At the heart of this activity is the Bacolod Real Estate Development Corp. (BREDCO) port, which serves as the city’s logistics backbone and is evolving into a warehousing hub, with facilities ranging from 1,700 to 5,000 sq.m. While flooding challenges persist within the port area, adjacent sites offer room for expansion that supports sustained growth.

The Negros Island Region accounted for 61% of total shipcalls in the Visayas, underscoring its pivotal role in regional maritime activity. Within the region, Panay/Guimaras recorded 91,337 shipcalls, significantly higher than Cebu’s 39,576, and among the highest compared to major ports in Luzon and Mindanao. In terms of cargo movement, the region handled 37% of the Visayas’ total volume, with Panay/Guimaras emerging as the top contributor in the NIR and the second highest across the Visayas.

The reestablishment of the Negros Island Region presents an opportunity to strengthen logistics and inter-island connectivity, particularly as Negros Occidental accounts for most of the country’s sugarcane output. However, the region’s dependence on sugar leaves it vulnerable to climate risks and price volatility. Thus, the diversification to other industries and services as mentioned above is crucial in sustaining the growth of NIR.

Bacolod also enjoys a cost advantage. Warehouse rental rates range from P150-250 per sq.m. per month, at par with Iloilo and below Cebu’s P185-300, giving the city a competitive edge for occupiers. Looking ahead, strategic infrastructure projects such as the Bacolod–Negros Occidental Economic Highway, the New Dumaguete Airport in Bacong, and the Panay–Guimaras–Negros Island Bridges are poised to enhance connectivity across key gateways. These include the established BREDCO and Dumaguete Ports as well as the Bacolod–Silay and Sibulan Airports, with the upcoming Bacong Airport expected to significantly boost trade and regional integration.

EMERGING OPPORTUNITIES POSITION BACOLOD AS THE NEXT BPO FRONTIER

Bacolod City’s office market is gaining traction, driven by the expansion of the BPO sector. Recognized as a “Center of Excellence” for IT-BPM and one of the country’s “Next Wave Cities,” the industry employs about 40% of the city’s white-collar workforce, underscoring both its reliance on outsourcing and the sector’s confidence in Bacolod as an alternative to Cebu and Metro Manila.

In the first half of 2025, Bacolod’s office occupancy dipped below 80% due to new stock in the market.  The flip-side of the market is that it gives ample room for new entrants and providing occupiers with greater leverage in negotiations. Rental rates average P500-800 per sq.m., comparable to Cebu but well below Metro Manila’s P900-1,100, making Bacolod a cost-efficient option for firms seeking scalability without compromising talent access. This is supported by a steady pipeline of over 20,000 college graduates annually and lower operating costs than in Metro Manila.

Developers are reinforcing this momentum. Megaworld’s Upper East Township delivered Bacolod’s first LEED-certified office building and, in June 2025, became the city’s first PEZA-accredited IT Park, with a second tower underway. Other major developers such as Ayala Land and Robinsons Land also have their respective mixed-use developments in the city.

While Bacolod is gaining ground, its office market will reach its potential only if key hurdles are cleared. Foremost is the difficulty local developers face in securing PEZA accreditation, which limits the supply of fiscally incentivized space that outsourcing firms prioritize when choosing sites. By contrast, Cebu hosts dozens of PEZA-accredited buildings, and Iloilo’s accredited stock is clustered in Iloilo Business Park.

NIR ADVANCES ITS POSITION AS A KEY REGIONAL GROWTH CENTER

Anchored by agriculture, fueled by renewable energy, and supported by competitive industrial and office markets, the Negros Island Region is steadily transforming into a diversified investment hub. This convergence signals its evolution from a traditional agricultural economy into a dynamic center for industry, services, and sustainable growth, firmly positioning it as one of the most promising emerging markets in the Visayas.

Source: Business World

How Trump Might Fix A ‘Housing Emergency’ in the US

There are no easy solutions to ease the housing affordability crisis, and some may run counter to President Trump’s other goals. 

The ballooning costs of buying a home have put homeownership out of reach for many Americans for quite some time, and last week the White House weighed in. “We may declare a national housing emergency in the fall,” Treasury Secretary Scott Bessent told the Washington Examiner in a Labor Day interview, but he provided scant detail beyond suggesting that the administration is looking at ways to standardize building codes and trim closing costs.

Some experts are concerned that such an emergency declaration would amount to an empty gesture. Although an affordability crisis is undoubtedly ongoing, there are no simple solutions, and many steps that could address the issue run counter to President Donald Trump’s other goals. “There are no shortcuts to answering this problem, because it took a long time to create,” says Andrew Wells, chief investment officer of investment management firm SanJac Alpha. “Either mortgage rates have to come down, or the cost of things associated with homeownership like insurance have to come down.” Of course, there is no guarantee that any patches are in the works.

Moreover, it “remains unclear exactly what kind of emergency measures the administration could take to address housing, or even if using emergency powers in this way is lawful,” notes Realtor.com senior economist Joel Berner. Assuming a declaration is issued, there are practical limitations on what the White House could do to address long-term affordability issues. Some of the president’s keystone policies, like tariffs and mass deportations, are contributing to housing costs, given increasing prices for things like lumber, steel, and labor. Although most of the market is focused on interest-rate cuts that Trump has demanded, which may come as early as this month, they won’t necessarily bring down mortgage rates.

After the last round of rate cuts in 2024, mortgage rates actually finished the year higher, as they (and long-dated Treasuries) take into account other data, including inflation and economic expectations. Likewise, Wells warns that if the government offers a tax rebate or subsidy, that only goes so far in helping Americans buy an “unaffordable asset, and you’re back to printing checks again,” like the pandemic-era stimulus checks that contributed to inflation and higher housing prices.

The housing bubble and subprime mortgage crisis helped kick off the 2008-09 global financial crisis, so there was a reluctance to build homes in the aftermath. However, some 20 million households have been formed since, and only 18 million homes have been built. There are some actions the president could try to increase supply, but these are likely to be met with resistance.

“Overriding, or at least standardizing, local laws on zoning would be a great step toward allowing builders to deliver the inventory needed,” says Berner. “Streamlining the permitting process and putting fewer restrictions on builders would be a great way to augment home inventory.”

That probably would boost builder stocks. The iShares US Home Construction exchange-traded fund is slightly trailing the S&P 500 index this year, although some builders, like D.R. Horton and PulteGroup, have surged more than 25%. Others, like Lennar and NVR, have lagged behind peers. Buddy Hughes, chairman of the National Association of Homebuilders trade group, also hopes deregulation will be part of any executive action, arguing for a “secure and affordable supply chain of building materials, and enacting policies that address a lack of skilled labor in construction.

A proactive agenda to bring down material, construction, and labor costs will also help.” The problem is that many high demand areas, like the Northeast, are likely to want to keep their local regulations for safety and environmental reasons—and blue states are more likely to challenge changes in court. Still, any well-reasoned action would be better than nothing.

According to the builders’ trade group, 75% of American households can’t afford a median-price new home. That means there could be ample public support to smooth the way for any popular policies that ease this crisis. Yet any lasting solution will necessarily be multipronged and take time to implement. No matter what happens, it seems as if the current house of cards can’t stand much longer 

Source: Barrons