Property sector seeks relaxed rules: Red tape defeats government move to address housing backlog

CEBU, Philippines — To effectively achieve the ambitious goal of constructing over a million housing units annually in the next six years, the government must prioritize streamlining the bureaucratic process that currently hinders developers from creating subdivisions and residential projects.

Filipino Homes founder and chief executive officer (CEO) Anthony Gerard O. Leuterio made this pronouncement during the National Real Estate Convention 2023 held Saturday, October 21, at JPark Island Resorts & Waterpark Mactan, which was attended by over 700 brokers and licensed real estate agents who are achievers in the Filipino Homes nationwide network.

According to Leuterio, developers are eager to build affordable housing projects to address the long-standing problem of housing backlog in the country, which is now reaching over 6.5 million. But the reality on the ground is that government agencies including the local government units (LGUs) are requiring hundreds of permits before starting a project.

“In order to build a house, meaning to create a subdivision, you need more than 172 signatures. Imagine, we are so weird. The Philippines is the most regulated, very, very regulated country,” said Leuterio mentioning that in other countries for instance, governments only require at most 10 signatures when applying for the approval of a housing project.

With these close to 200 signatures needed to start a project, it would take at least two years to complete the entire preliminary requirements.

“If we want to stimulate the industry, lessen the regulation, lessen the permits so we can help the Philippines,” noted Leuterio.

The Marcos administration has launched the Pambansang Pabahay Para sa Filipino program, which aims to build six million housing units and generate 1.7 million jobs every year from 2023 to 2028.

While Leuterio lauded the government’s newly implemented housing program, he said the national government (government agencies and LGUs) should work hand-in-hand in encouraging developers to join the cause, by making it easier for the private sector to invest in affordable housing developments.

“The (housing) backlog is serious a problem,” he said. With six million houses needing to be constructed, the government’s core is regulating and not expediting the processes in the creation of more housing projects.

“To the government please, lessen the regulations. Let them (developers) build housing projects. Lessen the number of signatures and I really want the developers and regulators to be as one,” Leuterio said.

According the Leuterio, the market is brighter than ever forecasted, explaining that the high remittances of Overseas Filipino Workers (OFWs) alone will drive the surge of demand for housing and real estate investments.

“But the question is, where will they (OFW) invest if there is no product (housing)?” Leuterio said.

Leuterio believes that the Marcos administration’s commitment to curb the housing backlog is commendable. However, he highlighted the need for an efficient system, one that actively engages developers in the realization of this program.

He also pointed out that the government won’t be the one constructing the houses, it is not the government that will build the houses, it will be the developers taking on this responsibility.

“Remember, in every house built, 60 jobs will also be created,” added Leuterio.

Filipino Homes recently concluded National Real Estate Convention 2023, which was also participated by top property developers in the country, including Filinvest Land, Cebu Landmasters Inc., Apple One, Johndorf, Weecom, BE Residences, IDC, 8890, Grandland, Prime World, and Sterling Land.