How Much Does It Cost To Build A House in the Philippines

It is good to know how much money you need to build a house to best ensure there are no delays in the project and that the property indeed serves as a worthwhile asset

While fully built homes are preferred by most buyers because they are mostly ready for occupancy and no additional construction costs, others still favor building a new home from the ground up. The common motivation behind this is the chance to establish a true “dream” home, where every aspect of the property is exactly how the owner wants it.

It is, however, something that is easier said than done, and apart from the logistics of building a home from scratch, there is also the matter of financing the project. From hiring a contractor, securing the needed permits, to purchasing building materials, there are a number of things an owner has to spend on, and it is important that these are accounted for, to ensure you incur no extra or unnecessary expense.

Q: How Much Do I Need to Build a House?

Construction Plans How Much Do You Need to Build a House?

A: According to the 2016 Construction Cost Handbook of construction consultancy services provider Langdon & Seah Philippines Inc., the cost in building a house still varies depending on the type and size. Terraced houses and average standard homes (one to two bedrooms) tend to cost between Php25,700 and Php31,000 per square meter. Detached houses and high-end residences, on the other hand, the cost is between Php32,000 and Php40,000 per square meter. These values, as per Langdon & Seah, are already inclusive of the expenses for mechanical, electrical, and plumbing services.

Permits and other paperwork needed to build a house

Along with the materials and labor needed for building a home, there are also a number of permits and paperwork which you’ll also need to produce for your project to push through. According to Eric Madrinan, a civil engineer in the business of building and selling properties, these permits include the following:

  • Architectural Plan – a plan that will be used as a reference in the construction of the house. This is provided by a duly Registered License Architect.
  • Barangay Permit – a permit from the barangay that has jurisdiction over the area you’ve chosen, and which you will also need your neighbors to sign.
  • Building Permit – Once you’ve secured the Barangay Permit, you will present it to city hall together with the Architectural Plan to secure the Building Permit, which is needed for you to be able to start your home’s construction.
  • Occupancy Permit – When construction is finished, you’ll also need to secure an Occupancy Permit, which are documents that signify that a licensed building surveyor is satisfied with the completed building work and that the new home is indeed suitable for occupation.

Using the Building Plan to Establish a Budget

For a more specific idea of how much building a house will cost, you can look to the final plan and designs you establish for the project. This is due to the costs also depending on the following variables, on top of the previously mentioned price range per total floor area:

  • Type of finish – Standard to elegant. According to Mr. Madrinan, a standard finish can cost about Php14,000 or more, while an elegant finish costs upward of Php30,000.
  • Timetable – Construction done in a rush would typically require more manpower than what is commonly needed to meet the shortened construction timetable
  • Lot location – If the location of your lot is lower than the road and would require the land being filled, then this would expectedly be an additional to the cost.
Contractors How Much Do You Need to Build a House?

Using the Budget to Make a Plan, Which Results in a More Specific Budget

In the instance, however, that you already have money set aside and know exactly how much you can spend on building a new house, it may be better to provide your budget outright to your contractor or architect. Just make sure that the one you select is duly licensed, and has a commendable track record of building homes that are of quality and within the specifications of the Philippines Building Code.

With what you can spend in mind, your house plans are designed and drawn, the technical specifications and bill of materials are prepared, and the final project cost is reached. When all parties are in agreement regarding every detail, a construction contract is executed and the previously mentioned building permits are secured, and the construction phase begins shortly thereafter.

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