Property developers are calling on the government to accelerate the issuance of Licenses to Sell (LTS), warning that prolonged regulatory delays are slowing housing production, delaying investments and posing risks to the broader Philippine economy.
Anthony Leuterio, national president of the Accredited Real Estate Salespersons of the Philippines (ABREP), said developers recently met with senior officials of the Department of Human Settlements and Urban Development (DHSUD) to raise concerns over the slow processing of LTS applications.
The LTS is a mandatory permit that allows developers to legally market and sell subdivision lots and condominium units. Without it, projects cannot be launched even after significant capital has been invested.
Leuterio said only about 93 Licenses to Sell have been issued nationwide so far this year, compared with more than 800 to 900 permits released in 2025.
“They need to catch up because there will be an issue on the economic side,” he said.
He warned that continued delays could reduce housing output despite resilient demand, postpone new investments and affect employment across construction and related industries.
“There will be big demand, but housing production will be lower,” Leuterio said.
He added that delayed developments also dampen demand for construction materials, transportation, engineering, architecture and other professional services, reducing the sector’s contribution to economic activity and government revenues.
The concerns were echoed by property consultancy Colliers Philippines, which described delays in LTS approvals as one of the country’s most significant regulatory challenges facing the residential property market.
Speaking during the launch of Colliers Philippines’ inaugural Visayas-Mindanao property market report, Head of Research Joey Roi Bondoc said developers cannot legally sell residential projects until the permits are approved, creating bottlenecks in the supply pipeline.
“The LTS issue would be a major concern,” Bondoc said.
He said slower approvals restrict the number of new residential projects entering the market, limiting housing supply at a time when demand remains steady.
“You’re restricting the available supply in the market,” Bondoc said. “If you don’t build now, how can you entice potential buyers? The availability of supply is very important.”
Bondoc said constrained supply could place further upward pressure on property prices, which are already being driven by higher land acquisition and construction costs.
He added that delayed approvals also postpone developers’ revenue generation and tie up capital, potentially discouraging future investments as the government seeks to narrow the country’s housing backlog.
“We need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers,” Bondoc said. “It’s a win-win for the market.”
Beyond the residential sector, Bondoc said the availability of new office and commercial developments also plays a critical role in attracting investors.
“If you don’t offer more options to the market, buyers and investors will only see what’s currently available,” he said. “You’re limiting their choices and ultimately limiting their propensity to invest.”
Business News Asia
