Delays in the issuance of licenses to sell are limiting housing choices for overseas Filipino workers and threatening the livelihood of thousands of real estate sellers, an industry group said.
Anthony Gerard Leuterio, president of the A Better Real Estate Philippines Movement, said the lack of new projects entering the market has become “alarming” as developers cannot launch pre-selling residential projects without licenses to sell.
In Cebu alone, more than 10,000 housing units are awaiting license approvals, Leuterio said, adding that the backlog is further tightening housing supply and pushing buyers toward more expensive ready-for-occupancy units.
“The issue is already alarming because there are fewer projects available for sale,” Leuterio said. “Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options.”
Leuterio said supply has become particularly tight in the P3 million to P6 million housing segment, a popular price range among OFWs who typically buy properties early for future occupancy or long-term financial security.
“Many OFWs want to secure a property early while prices are still lower. What is happening now is that most available units are already near ready-for-occupancy, which are more expensive,” he said.
He said most OFWs and local buyers continue to look for affordable houses and condominium units despite rising prices, with only about 10% of the market preferring bigger units.
“Because there are fewer new projects, many OFWs are being deprived of the opportunity to own a house or condominium,” Leuterio said.
The delays come as developers face rising construction costs, inflation, high borrowing rates and increasing regulatory requirements affecting housing projects.
Leuterio said the impact extends beyond homebuyers. Licensed brokers, accredited salespersons and independent agents rely on projects with valid licenses to sell, and prolonged delays could affect their income.
“Most salespersons work on a project basis. They rely on projects with LTS. If there are no new projects to sell, their livelihood is affected,” he said.
He warned that a prolonged shortage of legitimate project inventory could push some sellers into informal or unauthorized selling activities.
“We want salespersons to remain legitimate and compliant. The industry needs a balanced housing environment that benefits both OFWs and underprivileged local buyers,” Leuterio said.
ABREP urged government agencies to adopt a more predictable and consultative regulatory approach, particularly on policies affecting housing development and balanced housing compliance.
Leuterio said faster license approvals would not only increase housing supply but also support the government’s Pambansang Pabahay para sa Pilipino, or 4PH, program, as developers are required to allocate portions of their developments for socialized housing.
“When projects move forward, 4PH can also grow because developers are required to allocate portions of their developments for socialized housing,” he said.
He added that housing policies and compliance requirements should undergo wider consultations involving developers, real estate sellers and government agencies to ensure that rules remain practical while protecting buyers.
“The housing backlog remains significant. We need policies that protect buyers while also encouraging developers to build more homes and giving Filipinos more opportunities to own property,” Leuterio said.
The Department of Human Settlements and Urban Development said on May 14 that delays in processing housing-related applications were occurring mainly at regional offices rather than at its central office.
Housing Secretary Jose Ramon Aliling said an internal audit showed that most pending applications for licenses, certificates and other regulatory transactions were stalled at the regional level.
The department has assigned undersecretaries to oversee its 17 regional offices, clear pending applications and assess performance under its Zero Backlog Program.
Aliling said DHSUD’s digitalization program is expected to help streamline processes and eliminate backlogs, in line with President Ferdinand Marcos Jr.’s directive to improve government services.
