Building your dream home in the Philippines is an exciting endeavor, but it’s crucial to have a clear understanding of the factors that affect construction costs. From material choices to design preferences, various elements come into play when estimating the cost of building a house.
This guide will help you explore house construction costs in the Philippines, factors influencing these costs, and budgeting strategies to help you embark on your own house construction journey.
House Construction Cost Estimate
Determining the precise house construction cost in the Philippines can be a complex task, as it depends on several variables. However, starting with a general estimate can provide you with a ballpark figure to initiate your planning. Here’s a breakdown of house construction costs based on rough estimates:
Cost per Square Meter
The cost of constructing a house in the Philippines per square foot or meter can vary depending on factors such as location, design, and materials used. As of Q1 2022, the average cost per square meter for residential construction in the Philippines is approximately Php 10,893.16. It’s important to note that you can typically build on 60% to 80% of your lot area, depending on the number of floors and other factors.
Here are some specific estimates for different types of residential construction per square meter based on data from the Philippine Statistics Authority (Q1 2022):
Single House: Php 10,482
Duplex/Quadruplex: Php 8,798
Apartment/Accessories: Php 9,872
Residential Condominium: Php 18,347
Other Residential: Php 9,693
The Construction Cost Handbook Philippines 2020 by Arcadis Philippines Inc. provides a more detailed cost estimate of house building process in the Philippines.
According to this source, terraced houses and average standard homes (one to two bedrooms) may have construction costs ranging from Php 45,201 to Php 53,865 per square meter. High-end detached houses can range from Php 84,348 to Php 142,074 per square meter, including construction materials and services.
House Finish
The finish level you choose for your house significantly impacts construction costs. There are three main types of house finishes:
Rough Finish: Basic essentials, including cement floorings, concrete walls without paint, corrugated roofs, and jalousie windows. Estimated cost: PhP 22,000 to PhP 25,000 per sqm.
Standard/Executive Finish: Enhanced design with ceramic or granite tiles, painted walls, aluminum-framed windows, and cove-style ceilings. Estimated cost: PhP 30,000 to PhP 35,000 per sqm.
High-End Finish: Premium fittings, double-coated granite tiles, accent wall panels, terracotta roof tiles, and customized ceilings with pin lights. Estimated cost: Starting at PhP 42,000 per sqm.
These cost estimates are exclusive of additional features like lighting fixtures, grills, perimeter fences with gates, landscaping, and fees for house design and building permits.
How Much Does It Cost to Build a Simple House in the Philippines?
If you want your own home that will able to accommodate your needs, a simple house can suffice. You will save money on rent, as well as paying for real estate taxes. A simple house has bedrooms, a kitchen, one to two bathrooms, a dining area, a living room, and a garage.
A simple home-building project may cost around Php 25,000 to Php 37,000 per square meter. But if you plan your new house to be a luxury home, like that of Brittany Corporation’s luxury properties, you may need to look into the average costs for the building process. Make sure to have a rough estimate of the construction cost, and set a realistic budget to prevent any financial problems in the long run.
Factors Determining House Construction Costs in the Philippines
Several key factors influence the cost of building a house in the Philippines. To obtain a more accurate estimate, it’s essential to consider these factors when discussing your project with architects and construction engineers:
House Design and Specifications
The final cost largely depends on the design and specifications you choose for your home. Consider factors of the house design fees such as the type of finish, number of bedrooms and bathrooms, number of floors, size, and design type. Detailed plans and design preferences play a critical role in determining construction costs.
Labor Costs
Labor costs in the Philippines range from Php500 to Php800 a day, depending on the laborer’s skill level and experience. Labor construction costs in urban areas such as Metro Manila may be higher because of increased demand and a higher cost of living.
Timetable and Manpower
The construction timetable can affect costs significantly. Rushed projects with shorter deadlines require more manpower, increasing labor expenses. Planning your construction timeline carefully can help control costs.
Also, make sure to choose construction services that are reputable in building residential projects. These won’t cause delays as much as possible as they already have
Location and Terrain
The location of your lot and its terrain can impact construction costs. Lots in lower areas or sloping terrains may require additional materials and labor for leveling and foundation work.
Construction Materials
The materials you select for your home, including roofing, walls, flooring, and fixtures, influence the overall cost. High-quality material costs generally come at a higher price point, while more economical options can help control costs.
Permits, Licenses, and Taxes
Building permits, occupancy permits, and other required licenses affect the total construction cost. A building permit cost depends on the location, size, and scope of the project. Building permit fees cost around Php 10,000 to Php 50,000, or even more. Real Property Taxes and Value-Added Tax should also be considered in the total cost of building your dream house.
Working with a Set Budget for House Construction
If you have a house construction budget in mind, it’s essential to communicate this budget with your architect and construction engineer. They can tailor the plan and design to align with your financial constraints while ensuring your needs are met.
Be open to alternative materials and design options to find a balance between your budget and the desired outcome, like square footage or opting for a prefabricated home.
Using a Home Construction Loan
Many individuals opt for home construction loans from banks or government institutions like Pag-IBIG to fund their projects. These institutions typically require complete house plans and bills of materials before granting loans.
Banks often approve loans covering 70% to 90% of the property’s appraised value. It’s crucial to have your architect and construction engineer present when assessors from the bank visit your construction site to determine land value and construction costs.
Ensuring Quality in Your House Build
While controlling costs is essential, it’s equally vital to prioritize the quality of your construction. Cutting corners on quality can lead to higher long-term maintenance and repair expenses. Ensure that your architect and construction engineer are reputable and provide warranties and prompt after-sales service for any structural defects.
Building on a Strict Budget
For those with tight budgets, building a house is still possible. Innovative designs and efficient use of materials can help you create a functional and comfortable home within budget constraints. Consider exploring classic Filipino architectural styles like the Bahay Kubo, which can be built using indigenous materials like bamboo, nipa, rattan, and coconut lumber.
Buying vs. Building
Deciding whether to buy or build a house depends on various factors, including location, size, and budget. Building a house allows for more customization but may involve unexpected expenses. Buying a house typically involves a fixed payment but offers less customization. Your choice should align with your financial situation and long-term goals.
Build Your Dream Home with Brittany Corporation
Brittany Corporation specializes in crafting exquisite residential communities that epitomize sophistication and elegance. Their commitment to quality, attention to detail, and dedication to creating exceptional living spaces have earned them a distinguished reputation in the real estate industry.
Whether you’re dreaming of a modern masterpiece with panoramic views or a timeless architectural gem, Brittany Corporation’s portfolio of luxury developments has something to offer every discerning homeowner.
To learn more about their prestigious properties and embark on a journey to luxury living, visit Brittany Corporation’s official website, YouTube, or LinkedIn, or contact their dedicated team of experts today.
