The Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev) have updated the price ceiling for socialized subdivision and condominium projects, effective December 1, 2025.
The DHSUD and DEPDev recently formalized a policy change with the issuance of a Joint Memorandum Circular (JMC) 2025-001. This circular revised the price ceilings for socialized housing units, providing crucial support to the housing sector and significantly improving the quality of homes to be made available to Filipino families, including those of our Overseas Filipino Workers (OFWs).
Background
The previous price cap, set under JMC 2023-003 in October 2023, was deemed outdated because it didn’t keep up with the increasing costs of land, land development, house/unit construction, and operational overhead. This caused many developers to struggle to keep their projects viable, leading to a slowdown in private sector-developed socialized housing projects.
The decision to update the price ceiling aligns with Republic Act No. 11201, which requires the joint determination, review, and revision of the maximum selling price by the DHSUD and the National Economic and Development Authority (NEDA, now DEPDev). However, this revision is limited to once every two years to ensure that the price ceiling remains aligned with prevailing economic conditions. By directly addressing this issue and others, after extensive multi-stakeholder consultations and deliberations, the new JMC aims to align the ceiling with prevailing market conditions, considering inflation, construction indices, wages, and affordability benchmarks, thereby incentivizing the private sector to continue building, while allowing homebuyers to access housing under the socialized category.
This adjustment is a vital part of the government’s flagship Expanded Pambansang Pabahay para sa Pilipino (4PH) Program, which aims to substantially increase the housing supply. The new price ceiling is anticipated to significantly enhance the Program by boosting the production of house and lot packages, lot-only, and condominium units nationwide, among other housing options.
Highlights
The JMC updated the maximum selling prices, which will remain in effect for at least three years. A significant change is the increase in the minimum size of socialized housing units to 24 square meters (sqm), up from 22 sqm.
For socialized subdivision projects, including house-and-lot packages, the new maximum selling prices are PHP844,440 for units with a minimum size of 24 sqm to below 27 sqm, and PHP950,000 for units with a minimum size of 27 sqm. The maximum selling price for a lot-only shall not exceed 40 percent of the house-and-lot package.
For socialized condominium units that are 3 to 5 floors high, the price ceiling now ranges from PHP1.28 million to PHP1.5 million for a minimum size of 24 sqm to below 27 sqm, and a minimum size of 27 sqm, respectively. For buildings above 5 floors, the price ceiling ranges from PHP1.6 million to PHP1.8 million for a minimum size of 24 sqm to below 27 sqm, and for a minimum size of 27 sqm, respectively.
To promote the development of vertical housing in Metro Manila and other highly urbanized cities, and to ensure their continued participation and housing production, an additional maximum allowance of PHP50,000 to PHP200,000 may be considered, depending on the zonal value of the project site. This allowance would ensure that projects remain viable in areas with higher prices and development costs.
Benefits
For prospective buyers, securing a decent and permanent home for their families is a cherished dream, especially for Overseas Filipino Workers (OFWs) who have sacrificed their lives working abroad.
The JMC’s adjustment offers several direct advantages:
1. Increased options and faster turnaround: By making socialized housing financially viable, a surge in new project launches is expected. This addresses the long-standing problem of limited supply, giving both local and OFWs more choices and potentially faster access to available units. With the price adjustment, buyers will have more options to choose from at competitive yet reasonable prices.
2. Family-friendly spaces: The increase in the minimum unit size to 24 sqm means that families will enjoy a more functional living environment. This aligns with the desire to provide the best possible living conditions for their loved ones.
3. Investment security and value: OFWs’ remittances are investments in their families’ future. The increased price ceiling ensures that their hard-earned money translates into better-quality, more resilient, and spacious homes.
In essence, the new JMC goes beyond a mere price adjustment; it represents a strategic intervention aimed at making the dream of owning a quality home accessible to more families.
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Henry L. Yap is an Architect, Fellow of both Environmental Planning and Real Estate Management, and a Senior Undersecretary of the Department of Human Settlements and Urban Development.
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