A Philippine real estate industry group has urged the government to speed up approvals for new housing projects and avoid midstream regulatory changes, warning that delays could worsen the country’s housing shortage and push up property prices.
Anthony Gerard O. Leuterio, president of A Better Real Estate Philippines (ABREP), said prolonged delays in the issuance of License-to-Sell (LTS) permits by the Department of Human Settlements and Urban Development (DHSUD) were slowing the rollout of residential projects across the country.
In a statement, Leuterio said developers in Cebu, Davao, Cagayan de Oro, General Santos, Bacolod, Dumaguete, Ormoc and Metro Manila had reported lengthy waiting periods for LTS approvals despite having submitted complete documentary requirements.
He attributed the delays partly to the centralization of LTS approval authority at the national level, which he said had created processing bottlenecks and hindered the launch of pre-selling projects.
“The people suffering are not just corporations. They are small developers, community builders, and Filipino families waiting for homes,” Leuterio said.
He called on DHSUD to improve transparency by publishing data on the number of LTS approvals issued over the past six months, broken down by region and project type.
Leuterio also raised concerns over what he described as changing regulatory requirements for projects already under development, saying some developers were being asked to comply with new rules after securing financing, engaging contractors and committing to buyers.
He said such policy shifts could discourage investment and delay housing construction at a time when the Philippines faces a significant housing deficit.
“When projects stall, housing supply shrinks. When housing supply shrinks, prices rise,” he said.
The delays also affect overseas Filipino workers, who often depend on pre-selling projects with extended payment terms to purchase homes, Leuterio said.
Housing remains a key driver of the Philippine economy, supporting demand for construction materials, banking services, utilities and employment across multiple industries, he added.
Leuterio cited industry estimates showing the country’s housing backlog exceeded six million units in 2023 and could reach 13 million by 2040 without a significant increase in housing production.
He said the private sector was prepared to work with the government to address the housing shortage 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 on the concerns raised by the industry group.
Cebu Business News
