DHSUD under fire as permit delays stall project launches

CEBU, Philippines — The Philippines’ largest real estate marketing network is urging the Department of Human Settlements and Urban Development (DHSUD) to disclose data on housing project approvals, saying delays in the issuance of Licenses to Sell (LTS) are slowing project launches and constraining housing supply across the Philippines.

Anthony Gerard Leuterio, founder of Filipino Homes and Rent.ph  and the Philippines’ 2024 Realtor of the Year, called on the housing regulator to publish the number of LTS approvals released over the past six months, broken down by region and project type, amid concerns over processing bottlenecks.

The appeal comes as developers, brokers and sales agents report delays in obtaining permits required to market pre-selling residential projects, a key segment of the housing market.

Industry participants in Cebu, Davao, Cagayan de Oro and other major cities have cited extended waiting periods despite submitting complete documentary requirements, according to Leuterio.

“The industry needs transparency, consistency and timely action to help address the country’s housing needs,” he said in a statement.

Leuterio said the concentration of approval authority at the DHSUD national office has slowed the rollout of new projects, reduced available inventory and limited developers’ ability to market units.

The issue comes as the Philippines faces a housing backlog estimated at more than 6 million units, with demand continuing to rise amid population growth and urbanization.

Leuterio said delays in project approvals are also affecting Overseas Filipino Workers (OFWs) many of whom rely on pre-selling developments that offer longer payment terms and lower upfront costs than ready-for-occupancy units.

Industry groups have warned that a slowdown in project launches could further tighten housing supply, particularly in the affordable and mid-market segments.

DHSUD’s Central Visayas office has rejected claims that permit delays are holding back housing supply in Cebu.

In a statement issued earlier this month, DHSUD-Central Visayas said allegations by the A Better Real Estate Philippines (ABREP) Movement that about 10,000 housing units are being delayed by pending LTS approvals were “false and baseless.”

“We have streamlined our processes precisely to expedite application and permitting procedures,” DHSUD-7 Regional Director Mark Anthony Lindugan said.

According to the agency, only two LTS applications remain pending in Central Visayas — a residential subdivision project and a columbarium development — both of which are in the final stages of approval.

The agency said some project applications cited by industry stakeholders had been issued notices of deficiency or were awaiting additional documentation from developers.

DHSUD maintained that permit reviews are necessary to ensure compliance with housing regulations and protect buyers, particularly in the pre-selling market where developers are required to secure an LTS before offering units for sale.

The exchange highlights growing tensions between regulators and industry stakeholders as the government seeks to accelerate housing production under its national housing program while maintaining oversight of project compliance.

The debate also comes as developers contend with elevated construction costs, persistent inflation and tighter financing conditions.