CEBU, Philippines — More affordable or low cost housing units will be built across the Philippines following the government’s move to adjust the price ceiling and expansion of tax incentives to property developers.
On October 2, 2023, the Board of Investments (BOI) approved the adjustment of price ceiling for mass housing from P2 million to P3 million, along with other modifications of the income tax holiday (ITH) for mass housing developers, this was announced by BOI director for infrastructure and services Mary Ann E. Ragant yesterday during the opening of the two-day 31st National Developers Convention held at the Radisson Blu Cebu.
BOI however, is only providing incentives for affordable and economic housing projects, excluding those projects fall under the socialized housing category.
Subdivision and Housing Developers Association Inc. (SHDA) National President Leonardo Dayao, Jr., said the organization welcomes the development announced by BOI, but he also hopes that more programs and solutions will be implemented in the next few months to reinforce the promising outlook for the housing sector.
“I believe the move of BOI will motivate our member developers to build more projects especially in the affordable and economic housing segment,” Dayao said adding that what the private sector is also anticipating is the introduction of more programs and incentives for other categories like smart housing, among others.
Dayao, who is also the vice president of Pueblo de Oro Development Corporation, admitted that the Philippines’ housing backlog which now stood at 6.5 million is a big problem which needs strong collaborative efforts from all sectors.
SHDA member developers could help in terms of improving housing production, but it needs other sectors including local government units (LGUs) and other sectors to push the realization of closing the housing gap in the country.
Adjustment of price ceiling in building affordable housing, as well as providing incentives for developers are just two of the more crucial factors in order to hit the government’s goal in producing at least one million houses a year, to address the growing backlog, which now stood at over six million.
Industrial economist Winston Conrad Padojinog in his speech mentioned other factors that may affect the realization building at least 6 million housing units in six years, pushed by the Marcos administration’s Pambansang Pabahay Para sa Filipino Housing program, these are; Dysfunctional land markets ; Bureaucratic land admin & conversion process; Tedious approval process; Obtain a dev't permit— 27 gov't agencies, 78 permits & licenses & clearances, 146 signatures, 373 documents and sticky price ceilings. Sticky; limited ability to pay Administrative difficulties to access credit Lack of low-interest, long-term credit.
In achieving the ambition, Padojinog said “we have to do something, because it’s going to be a long chase.”
Solving the problem housing backlog, is not only the responsibility of the developers, but also sectors that need to collaborate like LGUs, Congress, national government agencies, financing institutions, construction, real estate services, manufacturing, landowners, among others.
More than 400 delegates are joining the 31st National Developers Convention which opened yesterday October 5, 2023 at the Radisson Blu Cebu, to explore the pressing challenges and seek out innovative solutions within the Philippine housing sector.
Organized by SHDA the two-day brought together the prime movers in the housing industry, and key government officials led by Department of Human Settlements and Urban Development (DSHD) secretary Jose Rizalino L. Acusar, who read the message of President Ferdinand R. Marcos Jr. which urged developers to help the government’s flagship housing program, the Pambansang Pabahay Para sa Pilipino (4PH).
Under the theme “LOKAL NA BAI: Building Nationwide Growth Through Regional Development,” this year’s convention aspires to bring together developers, policymakers, suppliers, and various housing industry stakeholders.
With 350 members nationwide and 8 regional chapters, SHDA members include the country’s top real estate developers players and a dynamic national network of small and medium developers. SHDA member-developers produce over 80 percent of homes produced annually in the country.