NCR Building Materials Price Growth Fastest in Over 5 Years

RETAIL PRICES of construction materials in the National Capital Region (NCR) grew to its fastest pace in more than five years in February amid supply chain constraints, preliminary data from the Philippine Statistics Authority (PSA) showed.

According to the PSA, Metro Manila's construction materials retail price index (CMRPI) quickened to 3.3% in February from 3% in January. This was higher than the 1.1% print seen in the same month last year.

This was the highest year-on-year growth for building materials prices in NCR in more than five years, or since the 3.5% in November 2016. The February figure also matched the 3.3% in July 2018.

Asian Institute of Management Economist John Paolo R. Rivera attributed the February print to supply chain limitations brought about by the ongoing coronavirus disease 2019 (COVID-19) pandemic and the Russia-Ukraine war.

“Demand is also high given a more open economy with increased activities, particularly for public and private construction firms,” Mr. Rivera said in a text message.

The Philippine government eased restriction levels in February, which allowed greater mobility and economic activity as COVID-19 cases declined.

“Construction will continue to recover to pre-pandemic levels as demand for both commercial and residential properties will also continue given increased economic activities in urban areas,” Mr. Rivera said.

In the year to date, the CMRPI averaged 3.2%, faster than the 1.2% average in the same period last year.

The February result was driven by faster growth in painting materials and related compounds (2.3% in February from 1.9% in January), plumbing materials (4.5% from 3.8%), and tinsmithing materials (5.2% from 4.2%).

Meanwhile, slower growth in prices were seen in masonry materials (1.9% from 2%) and miscellaneous construction materials (3.4% from 4.4%).

Mr. Rivera sees building activities in both commercial and residential to increase given a sustained economic recovery notwithstanding interruptions and disruptions in the current situation.

Philippines is one of our main market, we have finished many projects there such as:

1-SCPA steel structure prefab workshop,

2-SG Eco steel frame prefabricated workshop-3600sqm warehouse with two floors office in 250sqm,

3-Iriga steel frame prefab factory,

4-BBL container house accommodation camp—24 rooms accommodation camp with public services such as dining hall, gym room;

5-Maria De Sio Resort--light steel structure prefab house as staff accommodations,

6-SMMCI site office camp—1300sqm office building built by flatpack container house and 2600sqm steel structure warehouse

......

Most of our clients are introduced by our friends or clients there, so it's very important for us to visit the place and discuss with our clients face to face. the COVID-19 stop our visiting and the business there was dropt a lot during the last two years, but it's going to pick up again from Year 2022.