Developers appeal changes in housing standards, price cap

MANILA, Philippines — Socialized housing developers are opposing the changes in housing standards and price ceilings imposed by the Housing and Urban Development Coordinating Council (HUDCC).

The Organization of Socialized and Economic Housing Developers of the Philippines (OSHDP) and the Socialized Housing Alliance Roundtable Endeavor (SHARE) said it may be difficult for them to attain the government’s housing targets and the overall goals under the Medium Term Development Plan of some 443,303 units for the period 2020 to 2022 or an average of some 147,767 units per year.

This is because of the corresponding changes in standards that accompanied adjustment in the price ceiling for socialized housing.

The joint National Economic and Development Authority-HUDCC Resolution imposed a new price ceiling of P480,000 - 22 sqm with loft of at least 50 percent of the base structure or 24 sqm: P530,000 – 24 sqm with loft of at least 50 percent of the base structure or 28 sqm; and  P580,000 – 28 sq.m. with loft of at least 50 percent of the base structure or 32 sqm.

The previous ceiling was set at P450,000 in 2018.

However, OSHDP president Jefferson Bongat said the price adjustments and the accompanying increase in design standards for socialized housing projects are not viable and unrealistic.

Bongat said the new increases in the floor areas of different socialized housing tiers and the consequent increase in lot areas require additional increases of six, 10 and 14 square meters, respectively.

“The loft requirement of 50 percent of the base structure have further eroded whatever adjustment in the price ceiling. It will be difficult for developers to produce socialized housing under these requirements, especially in urban and highly urbanizing areas as this will entail additional construction costs,” Bongat said.

“The unrealistic adjustments in standards and price ceilings will adversely affect the participation of housing developers in the National Shelter Program of the government and will slowdown the production of socialized housing. The housing backlog of six million units will continue to spiral greatly affecting the supply and access for decent and affordable housing specially for the lower income groups of the population,” Bongat added.

SHARE president Marcelino Mendoza said labor cost has already increased by 4.9 percent in Metro Manila to P573 per day, which is exacerbated by the increased competition for both skilled and non-skilled labor for the Build Build Build program of the government.

OSHDP and SHARE are urging the government to immediately address this concern and revisit the adjustments in price ceiling and standards as this will have bearing on the housing industry and the overall economic growth and development.