How much does it cost to build a house in the Philippines?
The cost to build a house in the Philippines depends on several factors. For those deciding between building or buying a house, having a rough estimation of house construction costs in the Philippines is helpful. Here are some rough estimates for the cost of building a low-end house, a mid-range house, and a high-end house:
- Cost to build a low-end house: Between ₱ 2 million ($33,900) and ₱ 3.5 million ($59,325).
- Cost to build a mid-range house: Between ₱ 3.5 million ($59,325) and ₱ 5 million ($84,750).
- Cost to build a high-end house: Starting from ₱ 5 million ($84,750).
Breaking down the house construction costs in the Philippines
Building a house is one of the most significant investments. Understanding the cost of house construction in the Philippines is essential in creating a realistic budget and preventing unexpected expenses. Here’s a breakdown of the costs involved in building a house in the Philippines:
Land acquisition and preparation costs
These are the costs associated with acquiring and preparing land for building a house in the Philippines:
- Handling fee and notarial fee: Lenders charge ₱ 2,000 ($33.90) to ₱ 5,000 ($84.75) as a handling fee and ₱ 100 ($1.70) to ₱ 500 ($8.48) per document as the notarial fee for the processing of legal requirements for your home loan.
- Notarial fee for Deed of Absolute Sale: This is a legal document proving the sale or transfer of a property, typically ranging from 1% to 1.5% of the property’s selling price, but it should not be lower than ₱ 1,000 ($16.95).
- Mortgage registration fee: This varies depending on the property’s appraised value. Check the Land Registration Authority‘s fee schedule for the exact amount.
Construction costs
The construction costs vary between ₱ 20,000 ($339) to ₱ 50,000 ($848) or beyond per square meter depending on the construction method, such as concrete, masonry, hybrid, steel framing, wood framing, and the materials used. For example, a two-story house construction cost in the Philippines is approximately ₱ 27,000 ($458) to ₱ 60,000 ($1,017) per square meter.
Miscellaneous expenses
Here are the miscellaneous expenses related to building a house in the Philippines:
- Building permit fees: These vary depending on the house construction cost, location, floor area, height, and other factors.
- Architect fees: Professional fees equivalent to 10% of the house cost in the Philippines.
- Labor cost: Makes up 20% to 40% of the total house construction cost in the Philippines. Workers are paid hourly or daily, usually around ₱ 600 ($10.17) per day or ₱ 75 ($1.27) per hour.
You may want to consider getting property insurance in the Philippines during and after construction. Use our premium calculator to estimate the cost of house insurance.
Factors affecting the construction cost in the Philippines
Understanding the key factors influencing construction costs is crucial when building a house in the Philippines. This allows you to make informed decisions and effectively manage your construction budget. The following factors affect the cost of building a house in the Philippines.
Location
The location is crucial in determining the cost of house construction in the Philippines. Generally, urban areas tend to have higher construction costs due to higher land prices, labor costs, and materials costs. However, there may be exceptions where certain rural areas have high land prices due to proximity to natural resources or tourist destinations.
Size and design
The size and design of the house directly impact the construction cost. Larger floor areas require more materials and labor, increasing construction expenses. Additionally, complicated architectural designs and customizations can add to the house construction cost in the Philippines. Balancing the desired house size and design features is essential to managing costs effectively.
Materials used
The materials used in construction significantly affect the overall house cost in the Philippines. This includes cement, steel, bricks, wood, roofing, tiles, and other common construction materials. Material costs can vary based on market value, demand, and eco-friendly materials. Imported tiles or accent wall panels may also contribute to higher costs.
Labor costs
Labor costs also play a significant role in the overall cost of house construction in the Philippines. This includes wages and compensation for construction workers involved in carpentry, masonry, plumbing, electrical work, and other skilled and unskilled labor. The availability of qualified workers, demand for labor, and prevailing wage rates in the region can influence the cost of building a house in the Philippines.
Tips on saving money when building a house in the Philippines
Building your dream house is an exciting yet challenging endeavor. One of the main concerns for many people is how to save money during the house design and construction process. Luckily, there are practical tips that can help keep costs under control. Here are four tips on saving money when building a house in the Philippines:
- Plan ahead: Hiring an architect who can create a detailed construction project management plan tailored to your needs and budget is critical to saving money on a house construction cost in the Philippines, ensuring efficient execution, and reducing material waste and delays.
- Compare prices: Save money on the house construction cost in the Philippines by comparing prices from multiple suppliers, considering bulk purchases for discounts, and purchasing basic materials directly from suppliers.
- Choose cost-effective materials: When choosing materials for the house construction cost in the Philippines, balance price and quality and work with a technician who can guide you to choose budget-friendly materials without compromising style and elegance.
- Work with professionals: Collaborating with professionals, such as architects, is crucial for successful, cost-effective house construction projects that meet preferences and needs, provide security, avoid material waste, and meet expected timeframe.
Expert support for building or buying property in the Philippines
Building or buying a property in the Philippines involves many steps, from finding suitable land or property to selecting a trustworthy contractor and navigating legal requirements. Our experienced team is here to guide you through every stage of the process, ensuring a smooth and successful project. Whether you’re planning to build your dream home or invest in real estate, we offer personalized assistance tailored to your needs. You can also email us at [email protected] for more detailed inquiries and specialized support. Contact us today to get started on your property journey in the Philippines!
Frequently Asked Questions (FAQs)
How much is the construction cost per square meter in the Philippines?
The construction cost per square meter varies between ₱ 20,000 ($339) to ₱ 50,000 ($848) or beyond depending on the construction method, such as concrete, masonry, hybrid, steel framing, wood framing, and the materials used.
How much is the labor cost per square meter in the Philippines?
Labor costs per square meter in the Philippines range between 20% and 40% of total construction costs. Workers are often paid hourly or daily at a rate of ₱ 75 ($1.27) per hour or ₱ 600 ($10.17) per day.
Is it cheaper to buy or build a house in the Philippines?
Whether it is cheaper to buy or build a house in the Philippines depends on location, size, and materials used. Before deciding, it is recommended to conduct a cost analysis that considers these factors.
How do you estimate house construction costs in the Philippines?
When estimating house construction costs in the Philippines, consider material costs, structural design, and general labor costs, and consult with professionals such as architects or construction experts.
How much does it cost to build a house in the Philippines?
The cost of building a house in the Philippines can vary depending on location, size, materials, and design. To get a more accurate estimate, you can use a house construction cost calculator in the Philippines, considering these variables. These calculators estimate the cost based on your specific requirements and show how much it costs to build a house in the Philippines.
