May 15, 2022 12:46 am

Dollar effect: how much does it cost to build each square meter of an apartment

The dollar cost of constructing buildings in PH continues to fall and has already broken through the floor of US$600/m2. According to a report by Reporte Inmobiliario, the oscillations, which alter the projected budgets for the works, are due to the variation in the price of the US currency, a factor that is combined with the constant increases in pesos.

Almost in the same proportion as it increased in pesos, the cost of building, measured in dollars from the unofficial market, fell. Last month, it was worth US$603 to the dollar blue and now it costs US$596/m2. Thus, to build one m² of a standard apartment building, it will be necessary to invest 2.33% more pesos up to about $123,000 for each square meter. For what is this? According to the report, “to a greater devaluation”.

The survey indicates that the costs measured in dollars they are 50% below the peak of May 2017, when the square meter cost US$1,188. At the other extreme, the historical low point of the cost of construction was evidenced at the end of 2020, when in November it was around US$409. Meanwhile, a year ago, in January 2021, raising one m² cost US$505. As for the cost of the total square meter, which includes both the salable surface and the only buildable surface, it currently averages US$441.

In turn, from Real Estate Report they indicate that the cost of construction of buildings in average PH of the last three years, that is, between January 2019 and January 2022, is 40% below the figure recorded in the previous three years (between January 2016 and January 2019). At that time, the average exceeded US$1,000/m².

It should be clarified that, to carry out the measurement, Reporte Inmobiliario uses as a reference an eight-story building between party walls plus a retreat on a lot of 8.70 meters in front, composed of semifloors of two main rooms. The building has SUM and outdoor pool on the roof. The model is based on a real case of a finished work. The work is carried out through separate contracts, under the direction and coordination of a professional. Values ​​do not include VAT, benefits of the construction company and/or the developer, or professional fees.

For a project of these dimensions, the total cost would be US$471,302 or, if measured in local currency, $97,795,277. With this budget, a total area of ​​1,067 m² of the building could be covered, of which only 789.80 m² would be salable.

Comments (0)

Leave a Reply

Your email address will not be published.