Mass housing tops BoI’s list of registered projects

CEBU, Philippines – Housing projects continued to lead among the sectors in Cebu that availed incentives of the Board of Investments since 2012, a trade official said.

Citing data from BoI, Department of Trade and Industry-Cebu Director Nelia Navarro revealed that from 2012 to first half of 2015, mass housing in Cebu was first in the number of BoI's registered projects (28 projects), first in direct employment (4,556 jobs) and second in total investment of registered projects (P9.76 billion).

"The housing sector has a substantial contribution to the Philippine economy, generating the much-needed jobs and investments," Navarro told the Cebu Housing Summit organized by the Subdivision and Housing Developers Association (SHDA) last week.

Navarro said the Housing and Land Use Regulatory Board (HLURB) also reported consistent growth in the housing sector in Central Visayas in the past five years based on the number of registered projects, total area covered, number of units and total project cost.

"The housing sector and the economic activities associated with it have become important barometers and contributors to Cebu's economy," the DTI official said.

Housing  Backlog

Despite the mushrooming of residential development projects, housing backlog still continues to widen.

To address the housing backlog, Navarro urged the SHDA to build alliance among industry players and other institutions involved in the sector to achieve the goals laid out in the 2012-2030 Philippine Housing Industry Roadmap.

The roadmap aims to build 1 million houses by 2016, 2 million between 2017 and 2022 and 7 million from 2023 to 2030.

"The housing sector has a herculean task of eliminating housing backlog by 2030. Building ten million homes is no joke," Navarro said.

The Philippine housing backlog, which is a result of the higher demand in the market than the supply, currently stands at 5.5 million.

Julius Guevara, head of research and advisory at property consultant Colliers International, said in an earlier interview the backlog may even increase in the next years if the demand for socialized or mass houses is not met.

Guevara said the housing demand mainly comes from those who cannot afford a house financing, so offering low-cost houses is key.

Guevara urged developers to consider developing mass houses to help address the growing housing backlog. (FREEMAN)