Delays in the issuance of licenses to sell are limiting housing choices for overseas Filipino workers and slowing the launch of new residential projects, according to a real estate industry group.
Anthony Gerard Leuterio, president of the A Better Real Estate Philippines Movement, said developers cannot offer pre-selling housing projects without licenses to sell, reducing available inventory in key residential markets.
In Cebu alone, more than 10,000 housing units are awaiting license approvals, Leuterio said, adding that the backlog is tightening supply at a time when buyers are already facing higher property prices, inflation and elevated borrowing costs.
“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 the shortage is particularly felt in the P3 million to P6 million housing segment, a price range popular among OFWs seeking homes for future occupancy or long-term investment.
With fewer pre-selling projects entering the market, many buyers are being pushed toward ready-for-occupancy units, which typically carry higher prices than units sold during the early stages of development.
“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,” Leuterio said.
He said most buyers are still looking for affordable houses and condominium units, with only around 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,” he said.
The delays are also affecting licensed brokers, accredited salespersons and independent agents who rely on marketable housing projects for commissions and 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,” Leuterio said.
He warned that prolonged shortages in legitimate project inventory could push some sellers into informal or unauthorized selling activities.
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 could help increase housing supply and 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.
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.
Business News Asia