A Philippine real estate industry group has called on the Department of Human Settlements and Urban Development (DHSUD) to speed up approvals for new housing projects, warning that prolonged delays could worsen the country’s housing shortage and push home prices higher.
Anthony Gerard O. Leuterio, president of A Better Real Estate Philippines (ABREP), said delays in the issuance of License-to-Sell (LTS) approvals were slowing the rollout of residential projects and limiting options for homebuyers, particularly overseas Filipino workers.
Developers in Cebu, Davao, Cagayan de Oro, General Santos, Bacolod, Dumaguete, Ormoc and Metro Manila have reported longer waiting periods for LTS approvals despite submitting complete requirements, Leuterio said in a statement.
He said the centralization of LTS approval authority at the national level had created processing bottlenecks, affecting developers’ ability to launch pre-selling projects.
“The people suffering are not just corporations. They are small developers, community builders, and Filipino families waiting for homes,” Leuterio said.
Leuterio urged DHSUD to publicly disclose the number of LTS approvals issued over the past six months, broken down by region, project category and development type, to improve transparency and accountability.
He also raised concerns over what he described as regulatory changes being imposed on projects already under development, saying some developers were being required to comply with new rules after securing financing, hiring contractors and committing to buyers.
“When projects stall, housing supply shrinks. When housing supply shrinks, prices rise,” he said.
Leuterio said the delays could hit OFWs who rely on pre-selling projects with longer payment terms as an affordable route to homeownership.
He said housing remains a major economic driver, supporting demand for construction materials, appliances, utilities, banking services and jobs across the property value chain.
The Philippines’ housing backlog exceeded six million units in 2023 and could rise to 13 million by 2040 if current trends continue, according to estimates cited by Leuterio.
He said the private sector was ready to work with government agencies to expand housing supply while maintaining consumer protection standards.
“We do not ask for the removal of regulations. We ask for regulations that are fair, consistent, timely and developed with industry participation,” Leuterio said.
DHSUD was not immediately available for comment.
Business News Asia
