Developers seek review of house price ceiling

Mass housing developers urged the government to review recent moves to adjust the price ceiling and the design standard for socialized housing, saying they will have a negative effect on the industry and the overall economic growth and development.

The Organization of Socialized and Economic Housing Developers of the Philippines and the Socialized Housing Alliance Roundtable Endeavor, the two leading mass housing organizations in the country, expressed concern the government might not be able to meet its target to build 443,303 housing units from 2020 to 2022, or an average of some 147,767 units a year, if the two rules were not revised.

“The price adjustments and the accompanying increase in design standards for socialized housing projects is not viable and unrealistic. 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,” OSHDP president Jefferson 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 slow down the production of socialized housing,” Bongat added.

The National Economic and Development Authority-Housing and Urban Development Coordinating Council joint council has increased the price ceiling for socialized housing to between P480,000 for a 22 square meter with loft of at least 50 percent of the base structure or 24 sq. m. and P580,000 for a 28 sq.m. with loft of at least 50 percent of the base structure or 32 sq. m.

SHARE president Marcelino Mendoza said the current adjustments in design standards would jack-up production cost for socialized housing substantially by P12,000 per square meter, or some P72,000 to P168,000, based on the government’s recommended floor areas under HUDCC Resolution No. 1, Series of 2018.

Topics: Organization of Socialized and Economic Housing Developers of the Philippines , Socialized Housing Alliance Roundtable Endeavor , Jefferson Bongat
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