Home builders urge higher ceiling on socialized housing

MANILA, Philippines — Socialized housing players are appealing to the government to increase the present price ceiling for socialized housing units.

At present, the price ceiling for specialized housing units is P480,000 as approved by the Housing and Urban Development Coordinating Council (HUDCC) in April last year.

The two largest associations of socialized housing producers, the Organization of Socialized and Economic Housing Developers of the Philippines (OSHDP) and the Socialized Housing Alliance Roundtable Endeavor (SHARE), are urging the HUDCC and the National Economic Development Authority (NEDA) to reconsider and increase the price ceiling for socialized housing to P533,333 per unit.

The HUDCC Council approved a new housing ceiling of P480,000 in April from P450,000 but also increased the minimum floor area to 24 square meters from 18 sqm, thus negating whatever price adjustments that was given.

OSHDP president Jefferson Bongat said the new price ceiling has dampened enthusiasm for new production.

“Such situation is untenable considering that the government budget has been slashed to only around P4.7 billion in 2018 from a high of P33.4 billion in 2016, and it is the private sector, which is expected to take the slack,” Bongat said.

There is a housing backlog of six million units and this is expected to pile up with the higher price ceiling.

SHARE president Marcelino Mendoza said the prices of raw land increased by more than 15 percent on top of increased competition for both skilled and unskilled labor from the government’s Build Build Build program and the usual higher wages demanded by Filipinos working abroad.

In a June 6, 2018 letter to HUDCC chair Eduardo del Rosario, the OSHDP, the Subdivision and Housing Developers Association, and the National Real Estate Association requested for a P533,333 price ceiling for a 24 sqm house.

OSHDP and SHARE officials said the industry considers the situation as now nearing crisis proportions.

Private developers and NGOs involved in housing are requesting for immediate relief by increasing the housing price ceiling.