The Department of Human Settlements and Urban Development (DHSUD) is facing calls to speed up the release of Licenses to Sell (LTS), as prolonged approval delays begin to disrupt property launches and constrain housing supply across the country.
Anthony Leuterio, founder of Filipino Homes, said developers are growing increasingly concerned over the slowdown, with some waiting months for approvals despite having completed all requirements.
“There has been no LTS for so many months. Approval is super delayed,” Leuterio said, adding that the transfer of approvals from local offices to the national level has worsened the backlog.
He said the centralization of the process has created bottlenecks that the national office may be struggling to manage, resulting in delays in project rollouts.
According to Leuterio, the impact is already being felt across the property sector, particularly in the primary market, where pre-selling remains a key driver of growth.
“Primary sales are very vital in the development of a city. These are projects that offer five- to six-year payment terms, which most buyers prefer so they can afford to own property,” he said.
Without LTS approvals, developers cannot legally sell pre-selling units, effectively stalling launches originally scheduled for March and April this year.
“Developers are crying now. All are delayed,” he said, noting that some firms are waiting on multiple LTS approvals.
The delays are also affecting brokers and agents who depend on fresh project inventory to sustain sales. Markets awaiting new launches include growth areas such as Ormoc, Butuan, Cagayan de Oro, Davao City, and General Santos, as well as established hubs like Cebu, Bacolod, Manila, Dumaguete, and Bohol.
Leuterio said the bottleneck could also limit access to affordable housing, particularly for overseas Filipino workers, who often rely on pre-selling projects with longer payment terms.
“The Philippines needs new projects. These are affordable and designed for long-term payments, especially for OFWs,” he said.
While there are prescribed timelines for processing LTS applications once requirements are complete, Leuterio said approvals ultimately depend on DHSUD’s action.
He urged the agency to fast-track approvals, especially for developers that have already complied with all requirements, warning that extended delays could dampen investment and slow urban development.
“DHSUD must expedite the approval. Developers are now at the mercy of waiting,” he said.
Business News Asia
