Building a house is a significant investment, and the cost can vary widely depending on location, materials, labor, and other factors. In Cagayan de Oro (CDO), known for its growing economy and urban development, the cost of construction is relatively affordable compared to larger cities like Manila and Cebu, but it may still be higher than in more rural or less developed areas of Northern Mindanao. Here’s a breakdown of house construction costs in Cagayan de Oro and how they compare to nearby regions.
1. Cost per Square Meter in Cagayan de Oro
On average, building a house in Cagayan de Oro costs between ₱25,000 to ₱40,000 per square meter depending on the type of finish:
Basic finish: ₱25,000 - ₱30,000 per square meter
Mid-range finish: ₱30,000 - ₱35,000 per square meter
High-end finish: ₱35,000 - ₱40,000+ per square meter
This means a typical 100-square-meter house can cost anywhere from ₱2.5 million to ₱4 million. Factors that influence this cost include the design complexity, quality of materials, and the contractor's fees.
2. Comparison with Nearby Areas
Bukidnon: In this agricultural region, construction costs tend to be slightly lower, averaging around ₱20,000 to ₱30,000 per square meter, primarily due to cheaper land costs and lower demand for premium materials and labor.
Iligan City: Construction costs in Iligan City are comparable to Cagayan de Oro, with prices ranging from ₱25,000 to ₱35,000 per square meter. However, materials can sometimes be slightly cheaper here because of closer access to suppliers from nearby industrial centers.
Misamis Oriental (outside CDO): Smaller towns in Misamis Oriental generally offer lower construction costs, from ₱20,000 to ₱28,000 per square meter, especially for basic residential houses.
3. Factors Affecting Construction Costs
Several key factors influence how much it costs to build a house in Cagayan de Oro versus nearby areas:
Labor Costs: Cagayan de Oro, being a more urbanized city, has slightly higher labor costs compared to smaller towns in Bukidnon or Misamis Oriental. Skilled laborers such as electricians, plumbers, and carpenters may charge premium rates in CDO.
Material Availability: Construction materials in Cagayan de Oro are readily available due to its growing construction market and proximity to major suppliers. This can sometimes lead to competitive pricing. In contrast, in more rural areas, transportation costs may drive up the price of materials.
Land Prices: While construction costs per square meter may not differ significantly between CDO and nearby areas, land prices in CDO are generally higher, particularly in urban centers, affecting the total cost of building a home.
4. Why Choose Cagayan de Oro?
Although building in Cagayan de Oro can be more expensive compared to its neighboring towns, the benefits often justify the cost. The city offers better infrastructure, a growing economy, and proximity to schools, hospitals, and business hubs. Additionally, homes in CDO may have a higher resale value due to the city’s rapid urban development.
While construction costs in Cagayan de Oro are higher than in surrounding areas like Bukidnon and Misamis Oriental, the city’s growing infrastructure and urban amenities often justify the additional expense. For those looking to invest in real estate or build a home, it’s important to consider not only the per-square-meter costs but also the long-term benefits of living in a more urbanized and developed city.
Comments