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Last Updated on September 27, 2021 by Lamudi
Trying to come up with an exact figure of how much it would cost to build a house in the Philippines, or perhaps a very close approximation to it is a very tricky process. House construction costs in the Philippines depend on the materials that would be used and the type of house that would be built. There are a lot of things that you need to carefully consider when constructing a house, down to the nitty-gritty details of it, when discussing matters like these with your architect and construction engineer.
But if you’re planning for house construction in the Philippines and are looking for an idea on how much money you’ll need to build your own abode, then a general estimate might help you get started.
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How Much Are House Construction Costs In Rough Estimates?
House construction costs in the Philippines depend on how big you want your house to be. Based on Trading Economics, the cost of constructing a home in the Philippines is PhP 10,893.16 per square meter. Remember that you can only build on 60 to 70 percent of your lot area on the ground. If you plan on having a second floor, that can cover up to 80 percent of your lot area. Sum up your total floor area and multiply this by the national average cost of building a house in the Philippines, and you have a rough estimate for your house construction.
In data provided by the Philippine Statistics Authority, the following is theaverage cost for residential constructionin the Philippines per square meter in Q3 of 2023:
- Single House – Php 10,883.02
- Duplex/Quadruplex – Php 10,824.63
- Apartment/Accessoria – Php 9,289.79
- Residential Condominium – Php 20,424.98
- Other Residential – Php 8,025.57
Meanwhile, according to theConstruction Cost Handbook Philippines 2023 by Arcadis Philippines Inc., terraced houses and average standard homes (one to two bedrooms) will likely have construction costs ranging between Php 43,863 and Php 57,668 per square meter.
On the other hand, the construction cost is between Php 84,348 to Php 142,074 per square meter for detached houses and high-end residences. These “total” construction costs, as per Arcadis Philippines Inc., is the sum of construction services, materials, and services such as electrical, mechanical, plumbing, and other services. These estimates are also exclusive of contingencies and include 12% VAT.
Those figures are based on an aggressive estimate and are meant for budgetary purposes. Of course, it goes without saying that the bigger your house is and the fancier and sturdier your materials are, the higher the house construction cost per square meter goes up. Bear in mind that this cost estimate doesn’t even include things like lighting fixtures, grills, a perimeter fence that has a gate, landscaping, and outright costs such as house design fees and processing fees for building permits.
What Factors Determine House Construction Costs in the Philippines?
According to CM Builders, only when the plan and the design of the house have been finalized would it be possible to come up with a more detailed cost estimate. A lot of things would have to be considered, especially for house builders in the Philippines who are concerned about prices. What type of finish would you like your house to have? Are you leaning towards a more standard type of finish? Or would you rather have one that is elegant?
You also need to factor in the timetable, another factor that drives up construction cost per square meter in the Philippines. If you’re in a hurry to finish the house build, you’ll be needing more manpower than what’s typically needed to meet the original construction deadline that you’ve set. A rushed construction isn’t cheap.
The location of your lot is another factor that comes into play. If your lot is located in an area that’s lower than the road level, then this would add to the cost of building your own house because you need to buy additional materials for landfill. Similarly, if your lot is situated in a sloping terrain, that means additional materials and manpower would be needed.
Using the aforementioned construction cost estimates in the Philippines, if you’re thinking of building a standard type of house with about 200 square meters of floor area, you’d probably need to budget between Php 2,096,400 and Php 28,414,800. Again, the house construction costs in the Philippines would vary depending on several variables, such as the land price per square meter. The bigger and fancier you want your house to be, the more money you’ll have to shell out.
How to Work With a Set Budget for House Construction
If the cost per square meter on a floor area basis isn’t exactly something that you’re comfortable with, an alternative would be to give your budget outright to the architect and the construction engineer so that they can tailor-fit a plan and a house design that would suit your budget and your specifications. You might want to give your architect and construction engineer detailed specifications on how you want your house to look like, which includes the number of bedrooms and bathrooms, the number of floor levels, the type of finish, the desired size, and the design type.
Based on your desired specifications, your architect and construction engineer should be able to give you an idea if your ideal home suits your budget. Ask if they can give you a construction estimate for your Philippine house. If not, you could probably meet halfway and ask for alternative options in terms of materials and design type. Ask your contractor for a sample house construction cost estimate for Philippine homes.
According to CM Builders, “It is advisable to indicate a budget range you are willing to invest so the contractor will be able to advise what can fit within your budget. Otherwise, you may discover that when the cost estimates are presented, the budget you have in mind does not match or you may not be able to afford the investment required based on your desired design and specifications.”
How to Build a House Using a Home Construction Loan
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If you’re availing of a house construction loan through a bank or Pag-IBIG, remember that these financial and lending institutions require complete house plans and bills of materials before granting you the loan. Banks usually approve 70 percent of the value of the house construction cost estimate, according to CM Builders. Sometimes, banks approve 80 to 90 percent of the property’s appraised value. So, when an assessor from a bank visits your house construction site to calculate the land price per square meter and the construction cost, ensure that your construction engineer and architect are at the site when the assessor drops by.
Suggested read: Steps in Applying for a Home Loan
How to Make Sure Your House Is a Quality Build
While it’s perfectly understandable that you would want to save on house construction costs as much as you could, you need to weigh carefully your priority between quality and cost and strike a balance between the two. A well-built quality house would definitely cost you more. If you want something cheap, then you’ll get what you pay for.
Remember that over the long term, a house that is built cheaply would cost you a lot more on repairs and its yearly maintenance. You’ll end up spending more on repairing leaks and defects than you would have, had you chosen high quality over a cheaper alternative. That includes choosing reputable architects and construction engineers rather than merely hiring someone who has no expertise in constructing a house. You need to factor in warranty and a prompt after-sales service. Make sure they are legally liable for any defects in the structure of your house.
Make sure to get the best value for your money when you’re building your house. After all, it’s a lifetime investment.
How Much Does it Cost to Build a House in the Philippines in 2023?
The cost of building a house in the Philippines in 2021 ranges from PhP 15,000 to PhP 20,000 per square meter of the total floor area of the house. Take note that this figure does not include the cost of the perimeter fence with gate and landscaping as well as lighting fixtures and grills. In 2022, the cost of building a house in the Philippines increased taking into consideration that inflation reached an all-time high of 6.1% in June 2022, and USD to PHP exchange rate is around USD 58.6 to PhP 1.
This year, PSA estimates that the construction cost per square meter in the Philippines in 2023 will be around Php 11,232.88.
Estimating the final house construction costs in the Philippines would depend on the house plan specifications. These determine the necessary materials and equipment, scope of construction services, from electrical to plumbing to mechanical, and the duration of the construction, which contribute to the overall cost of building a house. It would be difficult to pin down an exact amount if we’re only talking in general terms, even with the number of floors and bedrooms as parameters.
However, if you don’t have a house plan yet, construction contractors use the cost per square meter method to estimate building expenses. The cost per square meter depends largely on the finish you prefer for your house, since it basically outlines the fittings needed for the build. There are three types of house construction finish:
- Rough finish.The basic essentials are in the house: cement floorings, concrete walls (but without paint), corrugated roofs, jalousie windows. This type of finish is at PhP 22,000 to PhP 25,000 per sqm.
- Standard or executive finish.The house with this type of finish level up in terms of design. The floors already have ceramic or granite tiles. The walls are painted, while the windows have aluminum frames. The ceilings may feature a cove style. This type of finish is PhP 30,000 to PhP 35,000 per sqm.
- High-end finish.By the name, it means the fittings and features have an upscale feel. In general, this type of house construction will have double-coated granite tiles, accent wall panels, terracotta roof tiles, and ceilings with a customized design with pin lights. This type of finish starts at PhP 42,000 per sqm.
Take note that the construction costs indicated don’t include landscaping, fencing, appliances and movable furniture, additional amenities, such as swimming pool, and professional fee. It only involves construction. If you don’t know yet how to get the square meter measurement of your house, just multiply its length and width.
Is it Cheaper to Buy or Build a House in the Philippines?
The location, size, and design of your house would determine the cost of either buying or building. But considering that all aspects are equal, at the onset, it will be cheaper to build a house because you will be able to skip paying the broker’s commissions, transfer taxes, and the profits of the developer. On the flip side, buying a house involves a fixed payment.
When you choose to build, even though you want to cover everything in your budget, there will be unexpected expenses along the way. Going over budget is very likely that the construction cost estimates at the onset will be far different from when you finish your build. This is why it’s best to buy a house if you have a very strict budget and explore building a house when you have extra money.
Can a PhP 100K Budget Build a House?
Home construction cost includes your homebuilding expenses and construction services. Aside from these, location also affects your home construction. If your budget is tight and you can only shell out PhP 100,000 to construct a house in the Philippines, you may do so.
However, expect that your home is small (11 square meters or smaller), located outside Metro Manila and other metro cities, and will be made of more inexpensive materials, so you shouldn’t be picky. You can have a slightly bigger floor space using cheap materials or a smaller home with better materials. You can save more if you are one of those who will build your home to cut labor expenses.
What is a Small House Design for a PhP 100K Budget in the Philippines?
The architectural design of the Bahay Kubo is an ideal home for a PhP 100K budget. A tiny home for this budget can have an open floor plan and one bedroom for privacy. The bedroom can be made of a divider or a makeshift one, such as cabinets for storage. You can also install your bed on a mezzanine floor to use the space below for other purposes, such as setting up your workspace or storage.
For structural stability, the foundation and footings of this tiny and cheap home will be made out of concrete, but the entire house is made of wood. Marine plywood or cement board can be used for the walls. For windows, jalousies are recommended. Don’t worry because you can update and improve your home once you have enough funds.
Can You Build a House for 1 Million Pesos or Less?
Yes, it’s possible. A lot of overseas Filipino workers document online their journey of building homes under 1 million pesos. The design of your home would determine house construction cost. A house that has a lot of intricate designs and finishes will naturally jack up the price. In contrast, minimalist homes, as well as tiny houses, are a lot less expensive to build.
Can You Build a House for 50k?
A home construction for PhP 50K may seem impossible. But believe it or not, this construction cost estimate can go far. It’s no secret that many Filipinos were able to make their dream houses a reality with just this budget using innovative designs. A popular, affordable home style is the classic bahay kubo. Made of indigenous materials such as bamboo, nipa, rattan, and coconut lumber, it’s cheaper to build.
In summary, house construction costs in the Philippines depend on the design and type of home you want to build. The best way to know if your budget is enough is to go to architects and get initial quotes. Start your home building project today.
Photos from Deposit Photos
