The construction cost of a house largely depends on its total area, type, location, and finishes. Moreover, the duration of the construction can increase or decrease the cost. Unless you have a list of all the materials needed and their respective costs, and the service fee of the builder or workers you will hire, you can only come up with a rough estimate of the construction cost.
Make a detailed estimation
A detailed estimation requires that you list down the items of work and the materials and labor they entail, and their corresponding costs. It is necessary to prepare an end-to-end plan to make the approximation easier. If you will be working with contractors or builders, you can ask them for a document that contains the details of the construction.
You can also compute for the estimate through the area method. It is a probably the fastest way to get the ballpark construction cost. You only need to give the contractors your floor area. Then they will derive the cost by multiplying it by their current cost factor. The Construction Cost Handbook – Philippines 2016 of Langdon & Seah Philippines Inc., a credible international quantity surveyor, shows the price range of building a house in the Philippines. Here are the details:
These costs are still estimates. They might change depending on your requirements. You need to take note of the factors that could affect the construction cost like the number of rooms and bathrooms, the type of finishes you want, the height of the structure, and the type of fixtures.
Location is important
It is apparently cheaper to construct a house in a province than in Metro Manila. How developed a city or a province is, significantly affect the cost of its land. In Metro Manila, a house in an exclusive high-end subdivision is more expensive compared to a small home in a humble barangay. It is safe to know the present per square meter value of the land in the city or province where you plan to build your home.
Determine the property class
According to Architect Manila, here are the probable construction costs depending on house classification:
A low-cost house is at Php 15,000 to Php 18,000 per sqm.
A mid-cost house is at Php 22,000 to Php 28,000 per sqm.
A high-end house is at Php 35,000 and above.
It is important to determine your budget before you decide the classification of your house and commence the construction. Stick to your budget no matter what. Your budget should determine how you would go about the construction, not the other way around.
So, is it cheaper to build a house from scratch?
It can be cheaper to just buy a house from a contractor and have it built on your land than building a house that meets all your requirements. However, you might end up living in a house that does not necessarily match your preferences. No one can really say that it is cheaper to buy than to build, for the cost of a construction still depends on your requirements.
Compare buying and building costs. It is the most effective way to know the best option for you. Consider their pros and cons before you decide. A home is a huge investment. Take your time and find out what best suits your budget, preferences, and needs.