Francisco Bangoy International Airport, better known as Davao International Airport (DIA), is slated for a massive ₱12.9-billion modernization under the government’s Public–Private Partnership (PPP) program. The project aims to upgrade Mindanao’s busiest gateway into a world-class aviation hub.
Among the top contenders is Singapore’s Changi Airport Group, widely regarded as one of the world’s best airport operators. Acting Davao City Mayor Sebastian “Baste” Duterte has openly backed Changi’s bid, saying its global track record could transform DIA’s operations, passenger services, and overall efficiency.
Changi’s reputation is backed by decades of success. In 2025, it reclaimed the title of World’s Best Airport at the Skytrax World Airport Awards in Madrid. Its 13th win, along with honors for Best in Asia, Best Dining, Best in the 60–70 million passenger category, and the first-ever award for World’s Best Airport Washrooms. It also ranked second globally in Travel + Leisure’s list, just behind Istanbul Airport.
In 2024, Changi ranked as the fourth-busiest airport worldwide for international passengers, handling about 67 million travelers. Its $1.7-billion Jewel Changi Airport, featuring the world’s tallest indoor waterfall, 280 shops and restaurants, and advanced passenger facilities, has become a benchmark for blending travel, commerce, and leisure.
The DIA PPP project will follow a Rehabilitate-Operate-Transfer model, rolled out in two phases.
Phase 1: Expansion of the passenger terminal, apron upgrades, new fire station, expanded parking, and a parallel taxiway.
Phase 2: Upgrades to ground support facilities and related services.
Separately, the Department of Transportation (DOTr) has allocated ₱650 million to expand DIA’s Passenger Terminal Building from 17,500 to 25,910 square meters by December 2026, raising seating capacity from 1,500 to 2,200 passengers and generating around 4,000 construction jobs.
According to Transportation Secretary Vince Dizon, three major groups have shown interest: Filinvest, Gokongwei, and Changi. Filinvest has already submitted a proposal, while the others are expected to follow. Dizon stressed that privatization is long overdue, noting DIA remains the only major international airport still under full government management.
Francisco Bangoy International Airport served more than 4 million passengers annually, functioning as Mindanao’s primary international gateway. The upgrades are expected to double its capacity within the decade, attract more foreign airlines, and strengthen Davao’s position as a hub for trade, tourism, and cargo exports such as bananas, cacao, coconuts, and BPO services.
Industry analysts believe bringing in Changi Airport Group could be a game-changer. By replicating its model. Where more than half of revenues come from non-aeronautical sources like retail and dining—DIA could diversify income streams while enhancing passenger experience.
The winning bidder is expected to be announced soon, with groundbreaking to follow. If Changi secures the deal, Davao will join the ranks of global cities shaped by its expertise, cementing its rise as a premier destination for investment, trade, and tourism.
If you’re interested in real estate investment, it’s also important to understand the construction cost to build a rental property in the Philippines. Knowing the budget requirements can help you gauge whether airport-driven growth in Davao could translate into profitable rental opportunities
You’ve worked hard to afford your dream home. Now ask yourself the question no one talks about enough: will it survive a flood?
Let’s be honest, flooding isn’t just a “natural disaster” anymore. It’s part of life now, especially if you’re house-hunting in or near a city.
You’ve seen the videos: cars floating down the street, living rooms underwater, families scrambling to save what they can. The scary part? Some of those homes were new builds. Others were in so-called “safe” neighborhoods.
So if you’re buying a home, first or forever, you need to ask: 👉 Would your dream home survive a flood?
We will help you dodge a disaster before you sign that property contract.
What Makes a Home Flood-Resistant?
A truly flood-resilient home isn’t just elevated. Here are engineering and design features you need to always check before considering a property.
1. Site Elevation and Location
You’ve heard “location, location, location” before. But now, it’s not just about schools or malls.
Ideal Elevation and Distances
Is the property in a low-lying area? Near a river? At the end of a sloped street with poor drainage?
Avoid low-lying areas, floodplains, or areas near rivers and esteros.
Utilize publicly available apps and website from key agencies and universities. Apps below will help you.
Look for subdivisions with good stormwater drainage design.
🔍 Tip: Ask your agent or inspector if the area has a history of surface water runoff during storms. Normally, they would answer this, honestly.
But, don’t stop there. Talk to long-time residents if you are considering on buying a property in a certain location. Even non-flood zones are flooding now thanks to poor urban planning.
2. Proper Grading and Site Drainage
Water will always find the lowest point.
If that point is your home’s foundation, water will find a way in. Slowly eroding concrete, saturating the soil, and eventually leading to cracked walls, leaks, or even structural movement. Below are the things to look for.
The lot should slope away from the house, not toward it.
Look for concrete swales, catch basins, and wide road gutters.
Drainage canals or hidden slopes under landscaped areas
Retention pits or underground tanks to temporarily hold rainwater
Water Slopes/Drains Away from the House and Foundation
It’s not about big dikes or fancy technology. It’s smart, quiet design that keeps water in its place. If the site drains well, the house will last longer, stay drier, and require far fewer repairs in the future.
3. Elevated Floor Levels
You’ve probably seen it: two homes on the same street. One floods, while the other stays dry. The difference? Often just a few feet of floor elevation.
Remember, Water doesn’t knock before it enters.
Ideally, the finished floor elevation (FFE) should be at least 1.0–2.0 meter above the road.
At least 0.50 to 1.5 meters (1.5 to 5 feet)above the Base Flood Elevation (BFE). More if the area is historically flood-prone.
For flood-prone zones, consider stilt-type houses or homes with breakaway walls.
Slightly raised driveways and porches that act as water buffers
🔌 Elevate More Than Just the Floor
Raising floor levels also means raising key utilities:
Electrical outlets should be 12–18 inches from the floor
Air conditioning units and water heaters should be mounted above known flood lines
Circuit breaker panels must be high and dry
💡 The house may survive. But if the electrical system is soaked, it’s still unlivable.
Always ask:
“How high is the floor above the street level or surrounding terrain?”
If the answer is “barely,” think twice. Or prepare to invest in elevating it.
4. Effective Drainage Systems
You can have perfect grading and still end up with a flooded home. If there’s nowhere for the water to go.
A flood-resistant home manages water before it builds up:
Gutters and downspouts that push water away from the foundation
French drains or swales to direct surface runoff
Backflow valves to stop sewage from backing up
Sump pumps (with battery backup) in crawlspaces or basements
💧 Engineer’s Tip: Even brand-new homes can flood if the drainage is poorly designed or clogged. Always inspect gutters and site grading.
5. Wall and Floor Materials That Can Withstand Water
If you are in a flood prone area, then there is really a need for you not just to elevation your house, but to invest in materials that don’t fall apart when flood hits.
These certain building materials can take a soaking and bounce back:
Concrete, tile, metal, stone
Concrete hollow blocks (plaster finish) with waterproofing
Fiber cement boards (for interior) and closed-cell spray foam in walls
PVC or FRP Panels
🛑 Avoid:
Standard gypsum drywall and fiberglass insulation
Carpets
Laminated wood
Regular paint without waterproof primer
Choosing the right materials can mean a quick cleanup instead of a full renovation.
Warning Signs That a Property Is Flood-Prone
If you’re checking a house or lot for sale, look for these red flags:
Water stains on walls or fences
Moldy smells in the basement or ground floor
Sump pumps in living areas (a sign of previous flooding)
Neighbors with sandbags or raised walkways
If a house smells like fresh paint and bleach, but only near the baseboards, then start asking tough questions.
When you’re buying a home, you’re not just buying what’s visible. You’re buying its history, its location, and sometimes, its flood problems.
Let’s be honest, no home is perfect, but a well-designed, flood-resilient home stands a far better chance of protecting your family, your investment, and your peace of mind.
💡 Here’s the Bottom Line:
✅ You don’t need to fear floods. You just need to prepare for them. ✅ A dream home isn’t just beautiful. It’s smart, safe, and future-proof.
Whether you’re a young couple house-hunting, a broker advising your clients, or just planning your forever home. Make flood resistance part of the dream.
Because the strongest homes aren’t just built with bricks. They’re built with foresight.
In late June, floodwaters swallowed streets in New York City, turning major avenues into rivers within hours. Just days earlier, Tokyo saw its underground rail stations overwhelmed by an intense downpour that drainage systems failed to contain. And in Manila, torrential rains brought traffic to a standstill, flooded homes, and forced families to evacuate. Just another chapter in the city’s long struggle with urban flooding.
These aren’t isolated disasters. They’re part of a growing, global pattern: cities flooding faster, more frequently, and with deadlier consequences.
The question here now is “why do they keep happening, even in the most advanced cities in the world?”.
Behind the headlines and the viral flood videos? Lies a quieter, more technical failure. Urban engineering, planning, and outdated assumptions about how cities should deal with water.
This article dives into the flaws built into the concrete bones of our cities—and what needs to change before the next storm hits.
We’ve attended one of the seminars provided to us by our previous employers to help us design better projects regarding flood controls. You see, before any structures are built, an engineering assumptions and factors are incorporated into models/calculations. These assumptions and factors are gathered based on previous data “added” with adjustments. Yes, sadly sometimes, these adjustments are below what are happening on actual.
As we dive deeper, let us talk about the “100-year flood”.
The term “100-year flood” is widely misunderstood, and the reality behind it helps explain why so many cities are flooding more often.
What is a 100-year flood?
A 100-year flood doesn’t mean it only happens once every 100 years. It actually refers to a statistical probability: there is a 1% chance of that level of flooding occurring in any given year.
In engineering and urban planning, flooding infrastructure (like storm drains, retention ponds, and levees) is often designed to handle floods based on certain return periods:
10-year flood = 10% chance of happening each year
50-year flood = 2% chance
100-year flood = 1% chance
500-year flood = 0.2% chance
The Problem: These Events Are Happening Far More Often
Because of climate change, increased rainfall intensity, and urbanization, we’re now seeing 100-year flood levels every few years in many places.
Real-World Examples:
🔴 1. New York City, USA – Hurricane Ida (2021) Record-breaking rain overwhelmed sewers, flooded subways, and killed 13 people. Many were trapped in basement apartments. The city’s aging drainage system couldn’t keep up.
🔴 2. Zhengzhou, China – July 2021 A year’s worth of rain fell in three days. Subways and streets turned into death traps, killing over 300. The city was unprepared for extreme rainfall on this scale.
🔴 3. Mumbai, India – July 2005 37 inches of rain fell in 24 hours. Roads, trains, and power lines shut down. Over 1,000 people died. Exposing clogged drains and poor flood planning in one of India’s largest cities.
🔴 4. Jakarta, Indonesia – January 2020 Heavy rains and rising rivers flooded homes, killing dozens and displacing thousands. Land subsidence and poor drainage made things worse in this rapidly sinking city.
Core Engineering Flaws
Aging Drainage Infrastructure: Systems in many cities are 50–100 years old and not designed for today’s rain volumes.
Insufficient Capacity: Drainage is often sized for 10-year or 20-year storms. Not the 100-year events we’re seeing annually.
Paved-Over Surfaces: Too much concrete, not enough green spaces or permeable materials.
Poor Maintenance: Blocked drains, neglected culverts, and underfunded maintenance budgets.
Why this Matters
Many cities still rely on old hydrological data from the 1960s–1980s to size stormwater systems. Those systems can’t handle today’s rainfall volumes.
Engineers designed for what used to be “rare,” but in 2025, that rarity is gone.
The result? Drainage systems are overwhelmed. Streets flood. Subways close. Homes are damaged. Since we are now aware of the problem, what could be the solution? Let’s find out.
Urban flooding is just one symptom of underinvested infrastructure. If you’re interested in how structural failures unfold, you might also want to read about this recent bridge collapse and what went wrong.
Four Engineering Solutions That Work (But Are Underused)
1. Shanghai’s Sponge City Strategy
Photo by Rüdiger Meier
Once known for its natural waterways, Shanghai is now paved over. Leaving the city increasingly vulnerable to flash floods. In response, Shanghai became one of China’s first Sponge City pilots, an urban experiment that flips the script on stormwater management.
Instead of rushing rainwater out through pipes, Sponge City design absorbs, filters, and reuses water on-site. In areas like Lingang and Pudong, the city has replaced traditional surfaces with permeable pavements, added green roofs, built rain gardens, and turned flood zones into urban wetlands that double as public parks.
Smart sensors monitor runoff and redirect overflow into underground storage when needed. Early results are promising. Streets that used to flood now stay dry, even in heavier storms.
It’s a simple but powerful idea:
“Don’t fight the water, design the city to work with it.”
2. Tokyo’s underground flood tunnels
AI Generated Image
Hidden beneath Tokyo’s suburbs is one of the world’s most advanced flood control systems. The Metropolitan Area Outer Underground Discharge Channel, often called the Underground Temple.
Built to protect the city from typhoon rains, flash flood and river overflows, the system features a 6.3 km tunnel network and a massive storage chamber supported by 59 concrete pillars, each over 500 tons. It can hold up to 670,000 cubic meters of water.
During heavy storms, floodwater is diverted underground, stored, and then gradually pumped into the Edo River using giant turbines. It’s a smart design that doesn’t fight water. It manages it strategically, making Tokyo a global model for urban flood defense.
While concrete drains rush water away, green infrastructure slows it down, filters it, and sends it back into the ground.
Tools like bioswales (shallow, vegetated channels), rain gardens (landscaped basins), and retention tanks (underground reservoirs) are designed to absorb stormwater where it falls. Reducing runoff, easing pressure on sewers, and cutting flood risk.
It’s not just landscaping. It’s engineered nature, quietly doing what pipes and pumps can’t: managing water sustainably, one drop at a time.
4. Smart flood monitoring and early warning systems
Floods don’t just arrive, they build up. Smart monitoring systems use real-time data from rain gauges, river sensors, and soil moisture detectors to track that buildup as it happens.
When danger thresholds are reached, automated alerts warn residents and trigger flood control responses. Closing gates, activating pumps, or rerouting water. This would be effectively helpful for flash flood prone areas.
It’s a shift from reacting to predicting. Turning minutes of warning into lives and infrastructure saved.
What Needs to Change
1. Urgent Investment in Flood-Resilient Infrastructure
Decades-old drainage systems weren’t built for today’s climate. Many cities are relying on pipes and culverts sized for storms that no longer exist. To keep up, we need to fund the next generation of infrastructure. Larger-capacity drains, flood tunnels, retention systems, and smart pumps. No, not tomorrow, but now. Every delay makes cities more vulnerable to the next downpour.
Flooding isn’t just an engineering problem, but an urban systems problem. Engineers design the structures, but planners shape the land, and environmental scientists understand how water behaves in it. Without collaboration, we get isolated fixes instead of resilient cities. Solving urban floods means breaking silos and building together.
3. Policy Changes to Make Green Infrastructure Mandatory in Developments
Nature-based solutions work, but only if they’re built in from the start. Making bioswales, rain gardens, and permeable surfaces optional isn’t enough. Building codes and zoning laws must require developers to integrate green infrastructure into every new project. It’s not just sustainable. It’s now a matter of survival.
Conclusion
The floodwaters sweeping through cities around the world aren’t just acts of nature. They are the result of decisions delayed, corners cut, and warnings ignored. Engineering flaws may look technical on paper, but they often stem from outdated planning, weak regulation, and in some cases, misused public funds.
We already know how to build cities that can withstand storms. What’s missing isn’t knowledge, it’s the political will to act boldly, transparently, and without compromise.
If we want our cities to remain livable in a changing climate, we’ll need more than concrete. We’ll need courage, accountability, and the vision to prepare for the floods we know are coming.
As someone who’s spent most of our years in both construction and working with real estate developers, we’ve seen it too many times: young couples investing their savings into a home that looks perfect on the surface, or retirees downsizing into what seems like a hassle-free space. But, only to uncover hidden construction flaws that eat into their ROI, safety, and peace of mind.
This post isn’t about scaring you. It’s about equipping you. If you’re not a builder, a contractor, or a structural engineer, don’t worry, you don’t need to be. But you do need to know where to look and what questions to ask.
This is especially written such that even if you are looking for second-hand properties, the same principles will still apply. In other words, this guide can also be used for both newly-built properties, and pre-owned ones.
Looking for cost construction guides on building rental properties? Click here.
Let’s break down the hidden construction flaws that are ROI killers in your next real estate deal. These include construction issues that quietly sabotage property value. So you can buy with confidence, protect your investment, and sleep easy knowing you didn’t miss a thing.
🚩 1. Poor Foundation Work (The Invisible Time Bomb)
Hairline (or worse, big) cracks on flooring or wall joints
Uneven floors, popping or sloped tiles
Doors/windows that don’t shut properly
💸 ROI Impact:
Fixing a failing foundation can cost at least P500,000 ($10,000 to $50,000+) of course, this depends on the extent of the damage. Worse? It destroys buyer confidence when you plan to resell.
🛠️ Engineer’s Tip:
Bring a marble or small ball—place it on the floor. If it rolls, the slab has settlement issues. Also, ask for soil test results in new builds or recently reclaimed areas.
🚩 2. Improper Drainage and Water Intrusion
🔍 Red Flags:
Moist smells in basements or ground-floor units
Water stains near baseboards or ceilings
Mold or bubbling paint
💸 ROI Impact:
Water damage leads to rot, mold, and structural decay. It can force you into major retrofitting, making a “good deal” financially useless.
🛠️ Engineer’s Tip:
Walk the perimeter after rain. Does water pool near the foundation? Check downspout exits. They should discharge away from the structure by at least 1.5 meters.
Electrical rewiring for a house can cost at least around P100,000 ($4,000–$10,000). Plus, you carry legal and safety liability if you rent or sell the property with known faults. The more expensive it will be if you are to redo everything.
🛠️ Broker’s Tip:
Get an electrical audit during inspection even if local laws don’t require it. Substandard wiring is common in older homes, especially flip projects.
A roof redo can eat up P500,000 (depending on the roof dimension ($10,000 to $30,000). Worse, leaks can lead to internal structural damage and devalue the home. Probably one of the hardest to check in the hidden construction flaws as you need to be elevated.
🛠️ Engineer’s Tip:
Look at the roofline silhouette from afar. Any warping or dips? Also, check attic insulation—water damage leaves behind a musty smell and black stains.
🚩 5. Structural Add-Ons That Were Never Permitted
Photo by Lintang Samudera httpswww.pexels.comphotoworkers-making-a-steel-foundation-10932215
🔍 Examples:
Extended balconies, roof decks, or 2nd floors that seem “too DIY”
Extra rooms built onto the house without professional design
💸 ROI Impact:
Banks may refuse loans for unpermitted structures. During resale, you’ll be forced to tear them down—or discount the price.
🛠️ Broker’s Tip:
Ask for approved as-built plans or city permits. No paper trail? Walk away. Yeah, you can also negotiate with extreme caution.
🚩 6. Improper Slope on Bathrooms and Wet Areas
🔍 Spot It:
Water pools after showers
No proper slope toward the floor drain
Grout always stays damp = mold breeding ground
💸 ROI Impact:
You’ll lose renters or buyers due to hygiene and maintenance complaints. Re-tiling bathrooms can cost thousands and take weeks.
🛠️ Engineer’s Tip:
During inspection, pour a bucket of water on the floor. Does it naturally flow to the drain?
🚩 7. Pest Damage That’s Hiding in the Walls
🔍 Spot It:
Small holes in wood or baseboards
Sawdust piles (frass) under beams
Hollow-sounding wood when tapped
💸 ROI Impact:
Termite damage repair can really be expensive. If it happens to attack major structural timber column/beam. Expect it to be really costly. It also signals neglect. Hurting buyer trust and property value.
🛠️ Engineer’s Tip:
Look behind furniture and inspect window sills. Tap suspicious areas with a screwdriver. Hollow wood means trouble. Always get a pest inspection, even on new builds.
A Practical Walkthrough by a House Inspector Who’s On Your Side
Now, we’ve also created this smart questions to ask yourself to look for hidden construction flaws that may jeopardize your ROI.
1. Gate / Fence
Does the gate open and close freely?
Any strange or squeaky noises when it moves?
Is the hardware (hinges, locks, latches) working properly?
Are the fence posts stable, not leaning or rotting?
Is the fence aligned and intact — no big gaps or damage?
2. Garage / Driveway
Is there an area drain to avoid water pooling?
Does the garage floor slope slightly toward the entrance for drainage?
Are there cracks in the driveway or garage floor? (Hairline is common — watch for wide, deep cracks.)
Is the garage door motor working smoothly and quietly?
Are safety sensors and remote controls working?
3. Balcony
Is there a working drainage hole or scupper?
Any signs of water pooling or discoloration?
Are the beams, posts, and floor free from rust, rot, or cracks?
Is the railing stable, rust-free, and properly anchored?
Do you feel any bounce or give when walking?
4. Exterior Cladding / Walls
Is the paint in good condition? (No peeling, bubbling, or discoloration?)
Any cracks in the wall surface?
Are there visible signs of water damage, algae, or mold?
Are sealants around windows and wall joints intact?
Is the siding or cladding secure — nothing loose or warping?
5. Hallway / Entryway
Is the flooring level and free from soft spots or creaks?
Are there stains on ceilings or upper wall corners?
Do all light switches and ceiling fixtures work?
Doors should open/close without sticking or dragging.
Is the area well-ventilated and well-lit?
6. Living Room
Are floors solid and level? (No bouncy spots or loose tiles?)
Check walls and ceilings for cracks or patch jobs.
Do all outlets and switches work?
Are windows smooth to open/close and seal tightly?
Look for any signs of water leaks or past repairs.
7. Kitchen
Do cabinet doors/drawers open easily and align properly?
Look under the sink — any signs of leaking or mold?
Turn on faucets — is water pressure okay?
Are outlets GFCI protected near the sink area?
Check for range hood exhaust or ventilation.
Any signs of pest activity (droppings, chewed edges)?
8. Bathrooms
Flush toilets — do they refill without issues?
Turn on faucets and shower — good pressure?
Do all drains empty quickly (no slow draining)?
Any mold or mildew on tiles, ceiling, or corners?
Do mirrors show signs of moisture damage (edges peeling)?
Are tiles well-grouted and sealed?
9. Bedrooms
Windows: Do they open, close, and lock securely?
Check walls/ceiling for cracks or uneven paint patches.
Is there enough natural light and outlets?
Are door locks functional?
Floor should be quiet and solid — no hollow or loose boards.
10. Ceilings / Roof (Interior Signs)
Any sagging parts or water stains?
Ceiling paint peeling, bubbling, or cracking?
Are there any suspicious patched areas (possible prior leaks)?
Check corners and wall edges for yellowing or dampness.
11. Exterior Roof (Visual Check)
Look for missing, broken, or curled shingles/tiles.
Are gutters clean, aligned, and securely attached?
Is flashing intact around chimneys, vents, and skylights?
Check for rust, plant growth, or debris piles.
Look for sagging rooflines or dips in structure.
12. Attic (If Accessible)
Is there proper insulation and no signs of rodents or pests?
Any visible water stains or mold on the roof deck?
Does the attic smell musty or damp?
Are the vents clear (ridge, soffit, or gable vents)?
No exposed wires or unsafe-looking junction boxes?
13. Electrical Panel
Is it easily accessible and properly labeled?
Are breakers clean, not rusted, and reset properly?
Any signs of burnt smell or blackening around breakers?
Is the panel upgraded to support modern appliances and aircon?
No loose wires or makeshift extensions?
14. Plumbing System (Visible Areas)
Pipes (especially under sinks) should be dry and rust-free.
Turn all faucets — both hot and cold water should flow well.
Check if the main shut-off valve is easy to find and working.
Any signs of leaks in exposed pipes, ceilings, or walls?
Are drain pipes supported and not sagging?
15. HVAC (Heating, Ventilation, Air Conditioning)
Turn the system on — is it quiet and responsive?
Does it cool/heat evenly across rooms?
Any unusual smells (moldy, burnt, dusty)?
Check unit age — anything older than 10–12 years might need replacement soon.
Are filters clean and accessible?
Outdoor units should be clear of plants or debris.
Bonus!!! Ask around for the location’s history of flood and thief.
Did you know?
DOST-PHILVOLCS has a data that is provided to the public (for a certain fee) that determines if your parcel of land (or land that you are planning to purchase), has any earthquake and/or volcanic threat is present. It goes by the name PHILVOLCS Hazard Assessment Services, abbreviated as HAS.
Read more information about Earthquakes in the Philippines HERE.
🧠 The Investor’s Mindset: Always Think Long-Term
Even a beautiful home in a prime location won’t return profit if the bones are bad. You’re not just buying walls, you’re also buying maintenance risks, long-term costs, and your future peace of mind.
Smart investors bring in a trusted inspector or engineer. The P10,000-40,000 ($300-$800) you spend now could save you later.
✅ Action Checklist Before You Buy
Hire a third-party engineer or inspector (not just the seller’s) to inspect hidden construction flaws
Request as-built plans and building permits
Ask for recent photos during construction (if buying new)
Visit the site during or after rain
Check for proper slope, ventilation, and insulation
Negotiate hard if ANY issues are found—or walk away
🙌 Final Thoughts
The most dangerous hidden construction flaws are the ones you don’t see right away. As someone who has designed structures, reviewed contracts, and helped clients recover from bad investments, I’ll tell you this:
📉 ROI doesn’t just depend on market timing—it depends on what’s behind the walls.
Be wise. Think like a professional. Invest like a broker.
Building a rental property has become one of the most sought-after investment strategies in the Philippines, especially among Filipinos looking to secure long-term, passive income. Whether you’re an overseas Filipino worker or someone who has saved enough, knowing the real construction cost to build a rental property and how it affects your rental income is key to making a smart investment.
This guide breaks down the actual construction costs, key considerations, and income potential based on current market conditions across different regions in the Philippines.
This article is based on years of observing the construction and housing market, and it aims to share real numbers, often-overlooked costs, rental yield expectations, and practical tips to help investors get the most value from their property.
You may also want to get equipped with the things to inspect/check before your next real estate deal. Read more here.
Quick Answer: How Much Does It Cost to Build a Rental Property?
As of 2025, the cost to build a standard rental property in the Philippines ranges from ₱18,000 to ₱40,000 per unit, depending on:
Location (urban vs. rural)
Materials and finishes
Type of property (boarding house, apartment, duplex, studio units, etc.)
With these generic construction cost data, we have plot the approximate construction cost of typical rental properties in the Philippines.
Property Type
Approx. Floor Area
Estimated Cost (PhP)
Boarding House (4 units)
96 sq.m. (12sq.m. per unit)
1.6M – 2.4M
Studio Apartment
25 sqm/unit
500K – 875K per unit
Duplex Unit (single story)
50 sqm (25 sq.m. per unit)
900K – 1.9M
Duplex Unit (two story)
72 sqm
1.8 M – 2.8M
We will put a sample drafted floor plans for each property type to help visualize it. We are also working on the complete ‘basic’ plan with cost breakdown for each rental properties (except for the two story). So, make sure to subscribe to keep posted.
Click this if you are looking for a construction cost guide to build a house in the Philippines 2025.
Here are the samples floor plans. The cost breakdown is also posted down below.
The following is a good baseline data. But, take note that this is not a perfect cost breakdown. This is done swiftly. Meaning, this is not 100% accurate. As we keep on saying, construction cost and breakdown is tailored based on the singed and complete plan. And such plans differ per location in a lot of ways due to different structural calculation factors.
If such ‘complete plans’ do not exist, then, it’s a clear indicator that it is just a ballpark figure. Just like below.
Understand that this prices doesn’t include any appliances yet. Only cabinetry was included.
Furthermore, you need to understand that rental property construction isn’t just about walls and roofs. It includes a full set of expenses that many first-time builders don’t always expect.
Now, if you want to make your life easy, you can directly hire a contractor with complete set of professionals (Architect and Engineers) that offers design and build. That way, it wouldn’t eat up some of your precious time looking for the Architect to design your house, and then the searching for the most affordable builder to construct it.
Now that you know the cost you needed, let’s proceed to the return of your investment.
Sample Rental Income: Real Numbers
Below is the sample computation of the rental income in real numbers. The payback period considered is the most ideal one. Meaning, there are no vacancies, and there will be zero to minimal maintenance costs considered. Please take this lightly.
Description
Four Unit Boarding House (96 sq.m.)
Studio Apartment (25 sq.m.)
Duplex Studio Apartment ( 50 sq.m.)
Two Story Apartment (72 sq.m.)
Total Cost to Construction
P 2,100,000
P 650,000
P 1,500,000
P 2,300,000
Monthly Rent Per Unit
P 6,000
P 10,000
P 10,000
P 25,000
Total Monthly Rent
P 24,000
P 10,000
P 20,000
P 25,000
Yearly Income
P 288,000
P 120,000
P 240,000
P 300,000
Payback Period (excluding vacancy and upkeep)
∼ 8 years
∼ 6 years
∼ 7 years
∼ 8 years
Properties located near schools, workplaces, and public transport tend to perform better, with faster occupancy and more stable tenants.
With these numbers, it would be safe to say that the complete return on investment will be by the 10th year.
Construction Cost & Average ROI by Location
Area
Average Build Cost/SQM
Rental Returns (Est.)
Metro Manila
₱28K – ₱45K
6–9%
Cavite/Laguna
₱22K – ₱30K
7–10%
Cebu/Iloilo
₱24K – ₱35K
8–12%
Davao City
₱20K – ₱35K
9–13%
Metro Manila continues to be the priciest area for property investment in the Philippines, but many regional cities are gaining attention for offering better value. In cities like Cebu, Iloilo, and Davao, real estate prices are generally more affordable compared to the capital, yet they still deliver solid rental yields.
Some locations even outperform Metro Manila in terms of return on investment. This makes provincial cities attractive for both new and seasoned investors who are looking for lower entry costs and strong income potential from rentals.
Build vs. Buy: Which One Makes More Sense?
When investing in rental properties, one key decision is whether to build a property from scratch or buy a ready-made unit from a housing developer. Each option has its pros and cons, depending on your goals, budget, and timeline.
This is discussed thoroughly in this post. We know you are in hurry so we also summarized it here.
Factor
Build Your Own
Buy a Ready Unit
Customization
Full control
Limited options
Timeline
Longer (months)
Ready for occupancy
Capital Requirement
Flexible in phases. Paid upfront down payment to construct.
Paid upfront or Equity
Profit Potential
Higher (if done right)
Usually costs more per sqm
Those who already own land—or have access to cheaper plots—usually get better long-term value by building from scratch.
Tips to Maximize Your Investment
Start with solid planning: Sketch your expected rental income vs. cost to build.
Hire the correct professionals and contractors: Keep designs efficient, maximize usable space, minimize waste.
Source materials wisely: Compare local suppliers before buying in bulk.
Stay involved: Regular site checks reduce delays and hidden costs.
Think long-term: Pick finishes and materials that reduce future maintenance.
🗂️ Key Takeaways:
Average construction cost ranges from ₱18,000 to ₱35,000+ per sqm.
Location and accessibility significantly affect land prices and rental potential.
Building gives you flexibility, but requires more time and management.
Buying from developers offers convenience, but often at a premium price.
Always include a buffer for contingencies (10–20% of the total budget).
Always consult with the right professionals to avoid costly mistakes.
Final Thoughts
Rental property is not just a side hustle—it’s a real investment that can generate consistent income if done properly. For 2025 and beyond, those who plan smartly, build wisely, and manage efficiently stand to gain the most.
Building may take time and effort, but the long-term returns, for both financial and personal, are often worth it.
👍 Found this guide helpful?
If you learned something new or think others could benefit from it too, give it a like and share this post with your network! Let’s help more people make smarter rental property decisions. 🏠📊
Have you ever scrolled through a home magazine or walked through a luxury showroom and thought, “How do they make it look so effortlessly expensive?” we get it — we all dream of a home that feels elegant, polished, and inviting. But let’s be real: not everyone has the budget for designer furniture, custom lighting, and imported marble. The good news? You absolutely don’t need a fortune to create a high-end look.
We spent countless hours digging into the secrets of interior designers, studying real-life home transformations, and gathering the smartest budget-friendly strategies out there — all so you don’t have to. In this post, we are sharing practical, proven tips on how to style your home to look expensive for less. Because everyone deserves a home they’re proud to walk into — no matter what’s in the bank account.
In this guide, we’ll walk you through practical, direct to the point, and affordable tips that interior designers use to elevate spaces on a dime. Whether you’re redecorating a small apartment or giving your family home a glow-up, these ideas will help you achieve a luxurious look… for less.
Disclaimer: This post may contain affiliate links. The blogger may earn a small commission from qualifying purchases, at no extra cost to readers.
1. Use Lighting Like a Pro
Lighting sets the mood of a room faster than anything else. Swap out basic bulbs with warm-toned LED lights, and layer your lighting: ceiling lights + floor lamps + accent lighting.
💡 Pro Tip: Look for chandeliers or pendant lights on Shopee or Lazada flash sales. These instantly add sophistication without the designer price tag.
Light up your space with intention — explore top sellers but affordable lighting options that add drama, elegance, and warmth to any room
Note: Be extra careful not to overload your electrical system, though. Excessive extra lights done by non-technical people may start a fire.
2. Upgrade Small Fixtures
Dated doorknobs, cabinet handles, and faucets scream “builder-grade.” Replacing them is one of the cheapest and fastest ways to upgrade your home.
FAQs – Making Your Home Look Expensive on a Budget
Q: What is the cheapest way to make a home look luxurious? A: Focus on decluttering, using lighting wisely, and incorporating texture with throws and rugs.
Q: What small upgrades have the biggest visual impact? A: Upgrading hardware — like cabinet knobs, drawer pulls, door handles, and faucets — is a small but powerful change. Modern finishes like matte black or brushed gold can elevate kitchens and bathrooms instantly.
Q: Is it better to buy new furniture or work with what I have? A: Focus on investing in one or two key pieces that anchor a room, such as a statement sofa or bed frame. Then mix in budget-friendly or secondhand decor to complete the look without overspending.
Q: What’s the easiest way to make a home look more expensive on a budget? A: Start with lighting. Replacing old fixtures with modern or stylish lighting instantly adds polish to a room. Layering light with floor and table lamps also creates a warm, inviting ambiance.
Q: Can I make a small house look expensive? A: Absolutely. Use mirrors, vertical curtain tricks, and consistent neutral tones to visually expand space.
Q: Can paint really make a big difference in a room? A: Absolutely. A fresh coat of paint is one of the most budget-friendly ways to transform a space. Stick with neutral tones for a timeless, upscale feel, or use bold accents to create depth and contrast.
Making your home look high-end doesn’t require deep pockets—just smart choices and a little creativity. By focusing on affordable upgrades and a few design tricks, you can completely transform your space into a stylish sanctuary.
If you found these tips helpful, share this post with a friend who’s dreaming of a high-end home on a budget! And don’t forget to subscribe for more practical, budget-friendly design ideas coming your way.
Small house designs are revolutionizing the way we think about living spaces. As urban areas continue to grow—and the demand for sustainability and affordability intensifies—these compact yet efficient homes are emerging as a compelling solution.
And here’s the reality check: To date, it may take up to 8 years to sell all the remaining unsold condominium units in Metro Manila, according to recent market reports. This staggering oversupply signals a shift in what homebuyers truly want—and it’s not another box in the sky. The appeal of small homes with land ownership, flexibility, and smarter design is growing stronger than ever.
In this post, we’ll explore the latest trends in small house architecture, showcase innovative design ideas, and examine why this movement could define the future of real estate.
We’re taking this a step further: by reimagining condo-style layouts as small stand-alone homes built on your own piece of land. Instead of being boxed into high-rise living, imagine recreating that 25 sqm condo unit—only this time, it’s a freestanding, personalized home. We’re drawing inspiration from condo interiors and transforming them into functional, beautiful tiny house designs.
Below is a sample of a typical floor plan 1-bed room look of a condominium unit. But, we’ve created it with a high ceiling to maximize the area. One can even create a mezzanine for this one.
While condominiums offer convenience and security, small houses built on individual lots are increasingly being seen as a more practical and livable alternative. Unlike condos, which often come with shared walls, limited privacy, and restrictions imposed by homeowners’ associations, small houses provide greater freedom in terms of design and use. Homeowners benefit from full control over their space — both inside and out — along with the added advantage of owning the land, which tends to appreciate in value over time. This makes small houses a more appealing long-term investment, particularly in markets where land ownership is a key asset.
Looking for the real cost to build a house in 2025? Click here.
The Rise of Small House Designs
Redefining Space Efficiency
Small house designs are all about maximizing every square meter. Designers are proving that limited space doesn’t mean limited functionality. Clever storage solutions, multipurpose rooms, and modular furniture allow residents to enjoy a clutter-free environment without sacrificing comfort.
Emphasis on Minimalism and Sustainability
Minimalism is at the heart of many small house trends. Clean lines, uncluttered spaces, and a focus on quality over quantity are hallmarks of these designs. Additionally, sustainable materials, energy-efficient appliances, and eco-friendly construction techniques contribute to a smaller carbon footprint—making these homes appealing to environmentally conscious buyers.
The real estate market is shifting, and small house designs are becoming more desirable than ever. With rising property costs, a focus on sustainability, and changing lifestyles, more buyers and investors are seeing the value in compact, well-designed homes.
Here’s why small house design trends are shaping the future of real estate.
1. Affordability & Cost-Efficiency
Housing prices continue to rise, making homeownership difficult for many. Small houses provide a more affordable entry point into the market while offering lower utility bills, maintenance costs, and property taxes. Real estate investors also see them as profitable rental properties due to their affordability and high demand among younger buyers.
2. High Demand for Minimalist & Functional Spaces
Today’s buyers prioritize functionality over excess space. Smart layouts, multi-functional furniture, and open-concept living make small homes more practical and livable. This design trend is perfectly aligned with the growing desire for simple, intentional living.
3. Eco-Friendly & Sustainable Living
Small homes naturally reduce energy use and material consumption. Many are built using eco-friendly materials and feature solar panels, rainwater catchment systems, and high-efficiency appliances—appealing to the growing number of buyers who value green living.
4. Growing Popularity in Urban & Suburban Areas
As urban land becomes scarcer and more expensive, compact homes offer an ideal solution. Suburban developers are also catching on, creating small house communities that serve first-time buyers, retirees, and professionals seeking affordable and convenient living options.
5. The Rise of ADUs (Accessory Dwelling Units)
This is more common in high income nations like Australia, United States, and Canada. Accessory Dwelling Units (or ADUs) is a common word for secondary dwellings, normally a smaller but independent residential housing on the same property land. Some call this “granny flats”.
More homeowners and investors are adding small secondary homes (ADUs) to their properties for rental income or multi-generational living. These tiny, independent living spaces increase property value and provide flexible housing options, making them a strong real estate trend.
6. Small Homes as Profitable Real Estate Investments
Investors are recognizing that well-designed small houses yield excellent returns. These properties are easier to rent out, require lower upkeep costs, and have a growing market of buyers who want efficient, stylish homes. Many small houses also perform well on short-term rental platforms like Airbnb.
Key Takeaways
Small house designs are no longer just a trend—they’re a response to real market shifts. With affordability, sustainability, and practicality at their core, these homes are redefining how we live and invest. As unsold condo units linger on the market for years, the demand for flexible, ground-level, and thoughtfully designed small homes is rising.
Whether you’re planning to build your own tiny home, invest in real estate, or simply explore smarter living options, now is the perfect time to take the small house movement seriously.
Now is the perfect time to join the small house movement — a rising real estate trend that combines affordability, efficiency, and smart living. With more buyers seeking low-maintenance homes that still offer comfort and tech upgrades, small houses configured as smart homes are becoming highly desirable. Simple additions like a solar outdoor CCTV and its solar panel, or a top rated automated lighting system can boost both convenience and resale value. It’s a future-ready lifestyle that’s practical, stylish, and surprisingly easy to start.
The collapse of the Isabela-Cagayan Bridge has sparked discussions about infrastructure safety and an apparent design flaws.
The President has pointed design deficiency as a key factor behind the disaster. However, the bridge’s designer, Engr. Alberto C. Cañete, is not rushing to conclusions. Rather than engaging in the blame game, he emphasizes the need for a proper Forensic Engineering Investigation to uncover the real cause of the bridge collapse.
Was it truly a structural design issue, or were there other contributing factors? Well, it could be construction methodology, quality of materials, or unreasonable overloading, right?
This article explores both perspectives, breaking down the science behind forensic engineering and why a thorough investigation is crucial before assigning fault.
Forensic Engineering Investigation is the Only Way To Go
In the case of the Isabela-Cagayan Bridge, retrofitting had already been performed before its collapse. Thus, raising concerns about its effectiveness and execution. Following the collapse, forensic engineering plays a crucial role in determining the real cause of failure.
A third-party forensic engineering analysis examines all possible causes—design, construction methodology, material quality, environmental factors, and maintenance history—before determining what truly led to the collapse.
Relying on assumptions instead of facts can hinder progress and prevent valuable lessons from being learned. If we are to improve infrastructure safety and engineering standards, a science-based, unbiased investigation is the only way forward.
Photo courtesy of Presidential Commissions Office FB Page
What is Forensic Engineering Investigation and Who Conducts It?
Forensic engineering investigation is the process of analyzing structural failures, material defects, or engineering-related accidents to determine their causes. It involves applying engineering principles, material testing, and data analysis to understand why a structural failure occurred.
Key Aspects of Forensic Engineering Investigation:
Failure Analysis – Examining collapsed structures, damaged buildings, or malfunctioning materials to identify weaknesses.
Site Inspection & Evidence Collection – Gathering physical evidence, taking measurements, and documenting conditions.
Material & Structural Testing – Checking the quality, durability, and integrity of construction materials.
Load & Stress Analysis – Evaluating whether the structure was subjected to forces beyond its design capacity.
Code & Standard Compliance Review – Comparing the design and construction with existing engineering codes and regulations.
Expert Reporting & Recommendations – Providing findings, causes, and possible solutions, often used in legal cases or policy changes.
Investigators will analyze multiple factors, including the bridge’s original design, the retrofitting process, material integrity, and the impact of the excessive load. The key steps in this investigation include:
Structural Simulation: Using modeling software to simulate potential failure scenarios.
Site Inspection: Examining debris patterns, fractures, and any visible structural weaknesses.
Material Testing: Assessing whether construction materials met safety standards and performed as expected.
Load Analysis: Reconstructing the weight distribution and stress levels leading up to the collapse.
Average Timeline for a Forensic Engineering Investigation
Total estimated duration is about 6 months to years. For high-profile cases (like a bridge collapse), the investigation can stretch beyond a year, especially if it requires courtroom testimonies or further government reviews.
Final Thoughts: When Retrofitting Isn’t Enough
Take note that the Cabagan-Santa Maria Bridge is a newly-built bridge. It wasn’t even properly turned over to the DPWH. But, it had already undergone retrofitting in its early young life. Yet, despite the additional reinforcements, the collapse still happened.
This raises critical questions:
Was the retrofitting properly designed and executed?
Were the right materials with the right specs used?
Or was it properly constructed according to correct engineering methodology?
A failure of this scale demands more than surface-level explanations. It requires an unbiased forensic engineering investigation. It will determine whether the failure was due to unavoidable factors or something more preventable.
In a system where infrastructure projects often involve layers of decision-making, one can’t help but wonder if every layer was built on integrity. But then, maybe, it might also just been because of the overloading all along. We are just thinking too logically.
Building a house in the Philippines is a major financial commitment, and the cost varies significantly depending on several factors. Whether you’re working with a tight budget or planning for a luxury home, it’s essential to understand where your money goes. In this post, we will break down bits-to-bits the real cost to build a house in the Philippines 2025.
Is ₱1M enough? Or do you need ₱5M+? Let’s break down the real cost of house construction in the Philippines in 2025.
Well you see, there are several factors that affect construction costs. To be honest, creating a post like this is tricky. It is difficult to fully explain it through a simple blog post. But, we will try to be simple as we can.
We will dive down into the most obvious factors that affect house construction costs.
If you are looking for the construction cost to build rental properties, click here.
Factors That Affect House Construction Costs
1.Location
Metro Manila vs. Provinces – Construction costs in urban areas like Metro Manila, Cebu City and Davao City are generally higher due to expensive land prices and labor rates.
Provincial Areas – In less urbanized areas, labor and material costs tend to be lower. But, understand that the farther the location to urban areas, the higher the construction material delivery cost is.
2. Lot Size and Type
If you already own land, you’ll save a significant portion of your budget.
Land prices vary depending on the area, with premium locations in highly urbanized area costing more per square meter.
3.House Size and Design
A bungalow is usually more affordable than a multi-story home because of reduced structural requirements.
Modern designs with open layouts may require higher-quality materials, increasing costs.
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Premium and imported materials, smart home features, and customized designs for comfort.
5.Labor Costs
By labor cost, we mean all the people that you need to build your house. From the actual manpower to the professional technical people. There are two options you can go about.
Hiring a Contractor – Preferably a design and build contractors are more convenient option but typically costs 20-30% more.
Direct Hiring Workers – A cheaper alternative, but requires hands-on supervision. You’ll still need to hire professional architects and engineers to design your house. You’ll also need to hire professionals to inspect workers output per project milestone. Supervising and checking your laborers output day-by-day may be a tremendous work, but, you can save a lot.
6. Permits & Fees
Building Permitsand Plans – Costs vary per municipality but typically range from ₱20,000 – ₱100,000. Typically, this is included in the design phase by the Architect (signing of all the professionals needed for the house design). Take note that “For Construction Plans” are different from the “As Built Plans”. See differences below.
For Construction Plans
As-Built Plans
Plans created before construction.
Plans created after construction.
Guide contractors on how to build the project according to the intended design.
Reflect any changes, modifications, or deviations made during the construction process compared to the original plans
Shows what is intended to build.
Show what was actually built.
By the way, the professional fees for these two different set of plans, are paid differently. It is important to discuss these to your hired professionals.
Design and build contractors normally has these two sets of professional. This is also one of the reason why design and build contractors are better than direct hiring of worker as discussed above.
Legal Fees & Taxes – Includes land title registration, notarization, and other government fees. You will go through this on your own if you opted to do-it-yourself. Mind you, this is not an easy task.
To give you a better grasp on the house construction cost, we will give you a sample house construction breakdown for the three house tiers, the low-cost, the mid-range, and the high-end with cost estimates. Unfortunately, we cannot give you the approximate house area as the plans varies.
The home construction cost breakdown above are just guides. To help you visualize its breakdown. If ever there are portion of this post that don’t coincide with your trusted contractor or professional, then, your contractor’s numbers should prevail.
Hidden Costs to Watch Out For
Even after estimating your construction cost, don’t forget about these additional expenses:
Landscaping – If this is included in your contract, the better. If it not and you want to do-it-yourself, you better check real-time local prices as this can get pricey.
Unexpected Construction Delays – Weather, permit issues, or material shortages. Well, if you hire the reputable contractor, then you wouldn’t really bother about this.
Inflation & Rising Material Costs –. If you are the one to buy some of the materials, like steel and cement, you better buy this in bulk. Prices of cement, steel, and wood fluctuate yearly.
Additional Key Points
Be sure to include in your contract a clause for liquidated damages – in case the house completion is delayed because of the contractor’s fault. For example, shortage of manpower, or construction tools/ equipment delays. Acts of God causes of delays like earthquakes and the likes, oftentimes, are not part of contractor’s liability.
Budget for Soil Testing & Unexpected Site Conditions – Many people forget that soil testing and unexpected ground conditions (like rocky soil or poor drainage) can add to costs significantly.
Probable active fault like or seismic activities in your land properties. With earthquake activities here and there, better seek professional advise about probable seismic activities in or near your land properties.
Waste Management & Cleanup Costs – Be sure to also include a clause about disposing of construction debris, renting waste bins, and cleaning up after construction can be costly if not planned for.
You may also want to get equipped with the things to inspect/check before your next real estate deal. Read more here.
Building a house is a major investment, and understanding the real costs involved can save you from unexpected surprises. Whether you’re planning a low-cost, mid-range, or high-end home, careful budgeting and smart decisions will help you maximize your investment.
Stay updated with construction material prices, labor costs, and hidden fees to make informed choices. And remember—working with reliable contractors and a solid cost plan can prevent costly mistakes.
📢 Have questions or experiences to share? Drop a comment below!
Disclaimer:
We do not warrant that the information on this website is correct, complete, or accurate; nor do we promise to ensure that the website and its content remains up-to-date. If there are portion of this post that do not coincide with your local contractor or professional, the contractor or professional advise always prevails.
A lot of people sends us a message about house construction cost, for both low-cost construction and mid-range construction cost. To hit two birds with one stone, we have a created this post comparing the two common housing tiers.
If you are looking for back-to-back comparison for Low-Cost, Mid-Range, and High-end houses all in 2025, click here.
Building a home is one of the biggest financial decisions you’ll ever make. But with so many options and price points, how do you know whether a low-cost home will meet your needs or if a mid-range build is worth the extra investment? Or perhaps, you would only need a little bit of extra money that is still on-point with your budget to get that mid-range house. Let’s check it out in this post.
The house plan we will talk into is reflected on the floor plan below. Approximately 115 sq.m. area for both ground and second floor.
As always, there will always be a disclaimer. These construction prices in the next paragraph are just average construction cost. It will always vary on the site location, availability of construction materials, and the labor cost in your respective area. If ever there are portion of this post that don’t coincide with your trusted contractor, then, your contractor’s numbers should prevail.
We will also dive down into an actual construction cost breakdown so you will have an idea about it’s price differences. But before that, we need to know the basic characteristics of comparison between low-cost houses and mid-cost houses.
This analysis breaks down the house construction cost differences between low-cost and mid-range housing, comparing expenses in overall project budget (costs includes both materials, labor, and equipment).
Description
Low-Cost Houses
Mid-Range Houses
Budget
15,000 – 25,000 Php / SQM, focuses on savings
26,000 – 45,000 Php / SQM, better materials and finishes
Materials Used
Basic Material, Tin/GI roofing, plywood, cheaper materials used and paint finishes.
More durable construction, better resistance to wear and weather conditions
Design and Aesthetic Appeal
Simple but functional, with minimal architectural details
More stylish, better layout, larger windows, enhanced curb appeal
Resale Value
Lower resale value due to basic construction and possible wear and tear
Higher resale value because of better quality and appeal.
For simplicity, we used the 115 SQM area house reference for both house tiers (floor plan above). The bill of quantity for both houses are also presented in such a away that it is easy for them to be compared.
We did not include high-end houses because it is unlikely that high-ends units will only have 115 sq.m. area as floor area. We will create a different post showing differences for the three house tiers, low-cost, mid-range, and high-ends units. So subscribe to keep posted.
In the price differentiation between low-cost and mid-cost construction cost, take note that the structural concrete division, the two house tiers are basically similar. We assumed that the house is in similar location and soil condition. Thus, it’s structural need is also identical. Normally, it is in the architectural trade that determine the cost of the house. Actually, architectural trade and aesthetic dictates the housing cost. Some home owners would not want certain columns in-centers. Hence, making the structural columns at the corner more reinforcement demanding. For simplicity, we will assume identical structural needs for this house.
Below, you will find the back-to-back house building cost comparison of the two typical tier houses, the low-cost houses, and the mid-range houses. To avoid complexity, indirect costs, contractor’s profit, and other miscellaneous is included in the numbers.
Everything is updated to date. You see, the following are the differences between low-cost and mid-range. In the attached bill of quantity, you will see the approximate building expenses between low cost housing and mid range housing costs. The brief summary of materials to be used is also included.
We would also like to highlight the per area construction costs.
These days, the decent entry level or low cost housing construction cost per square meter is around 15k-25k, while the mid-range housing construction cost per square meter is 26k-45k. Although some can still build below 15k (others can even do it at 10,000 – 13,000). But, its quality and integrity are shady and is not that good, Meaning, it requires frequent housing maintenance.
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Most contractors and builders uses this per square area, or per square meter in computing the building cost of the house for simplicity.
To get the “approximate” total construction costs, simply multiply the floor area of the house x the price range (that is 15k-25k for low-cost, and 26k-45k for mid-range). If there are two floors, add the ground floor area and the second floor area to get the total floor area, then multiply it to the price range.
Take note of the word “approximate” as this is only just an average. You cannot get the actual construction cost unless you already have the final house plan and contract in place. Also, don’t confuse these numbers with the developed lands offered by housing developers. Developed subdivision housing often have amenities which adds to the housing costs.
If you are looking for some references for house extension costs, click here.
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