Search
Close this search box.
Own property in The Philippines

How much does it cost to build a house: Construction costs in the Philippines

house construction cost in the Philippines

Table of Contents

Building a house in the Philippines has various factors determining its overall cost. These factors include the size of the house, location, materials used, design and finishes, and labor costs. Considering these factors and creating a detailed budget plan is essential to ensure the construction cost aligns with your desired specifications and requirements. In this article, we explain how much it costs to build a house by diving deeper into the construction costs in the Philippines.

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 house construction cost in the Philippines.

Location

The location is crucial in determining the house construction cost 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 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 house construction cost 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 skilled workers, demand for labor, and prevailing wage rates in the region can influence the cost of building a house in the Philippines.

Your guide to buying property in the Philippines

Breakdown of costs involved in building a house

Building a house is one of the most significant investments. Understanding the house construction cost 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:

  • Handling fee and notarial fee: Lenders charge ₱ 2,000 ($34) to ₱ 5,000 ($85) as a handling fee and ₱ 100 ($1.70) to ₱ 500 ($8.50) 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 ($17).
  • Mortgage registration fee: This varies depending on the property’s appraised value. Check the Land Registration Authority‘s schedule of fees for the exact amount.

Construction costs:

  • Construction costs: The construction costs vary between ₱ 20,000 ($340) to ₱ 50,000 ($850) 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 2-storey house construction cost in the Philippines is approximately ₱ 27,000 ($459) to ₱ 60,000 ($1,020) per square meter.

Miscellaneous expenses:

  • 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 ($10.20) per day or ₱ 75 ($1.28) per hour.

You may want to consider getting property insurance in the Philippines, both during and after construction. Use our premium calculator to estimate the cost.

Price range for building a house

Overall, the house construction cost in the Philippines for building a house varies greatly depending on the factors mentioned above. Here are some rough estimates for the cost of building a low-end house, a mid-range house, and a high-end house:

  • Low-end house: ₱ 2 million ($34,000) to ₱ 3.5 million ($59,500).
  • Mid-range house: ₱ 3.5 million ($59,500) to ₱ 5 million ($85,000).
  • High-end house: ₱ 5 million ($85,000) or more.

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:

  1. Plan ahead: Hiring an architect who can create a detailed construction project management plan tailored to your needs and budget is key to saving money on a house construction cost in the Philippines, ensuring efficient execution, and reducing material waste and delays.
  2. 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.
  3. 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.
  4. 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.

Build a house in the Philippines with Own Property Abroad

Do you want to buy or build a house in the Philippines? Knowing how to buy or build property in the Philippines can be challenging, especially for foreigners. Own Property Abroad can assist you and ensure a seamless and hassle-free property journey.

With our expert team, you won’t have to navigate the complexities of the Filipino market alone. For further information on how we can assist you, kindly drop your details below or email us at [email protected]. Let’s start working on your property success story today!

Contact our property expert in the Philippines

Leave your name and email below – Our real estate expert will reach out and assist you with buying or building property 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 ($340) to ₱ 50,000 ($850) 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 ($1.28) per hour or ₱ 600 ($10.20) 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 to build a house in the Philippines.

Your guide to buying property in the Philippines

Written by Therese Angeles

Leave a Reply

Your email address will not be published. Required fields are marked *

Your guide to buying property in the Philippines

Directly contact our legal expert in the Philippines

Looking for immediate and reliable assistance? Our agent in the Philippines is here to help you out.

Don't hesitate to contact us for solutions to your queries.

🇵🇭 Contact our legal agent to get assistance

Contact our property expert in the Philippines

Leave your name and email below – Our real estate expert will reach out and assist you with buying or building property in the Philippines.