The adjusted socialized housing price ceiling will boost the ongoing nationwide implementation of President Marcos’ flagship Pambansang Pabahay para sa Pilipino (4PH) Program, and could pump-prime the economy.
Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar said that the new pricing is expected to draw private contractors and developers, who have been clamoring for the adjustment, to actively invest into socialized housing and participate in 4PH projects.
“Malaking bagay po ito sa patuloy na pag arangkada ng Pambansang Pabahay. Sa tingin po namin mas maraming sasali sa programa mula sa private sector na talaga naman pong kailangan natin upang matugunan natin ang housing backlog na 6.5 million units,” Acuzar said.
“With this adjustment, we expect that 4PH will now shift to higher gear with more participants coming from the private contractors and developers,” he added.
So far, about 20 4PH projects in Luzon, Visayas and Mindanao are now ongoing – with private contractors and LGUs at the helm of the development.
Under 4PH, Acuzar is tapping private funds and investible funds from government financial institutions, instead of relying heavily on annual appropriations for DHSUD to ensure budgetary requirements in developing six million housing units by 2028 to address the country’s housing needs.
Apart from its huge positive impact to 4PH, the price adjustment could also trigger economic activities in the housing and real estate sector.
“Bukod po diyan (boost to 4PH), may positive impact din po ito sa ating pambansang ekonomiya dahil mahigit sa 80 industries ang naka-align sa housing construction at real estate development. Kaya magti-trigger po ito ng economic activities na makatutulong sa pangkalahatang sitwasyon ng ating bansa,” the housing czar said.
Acuzar and Socioeconomic Planning Secretary Arsenio Balisacan, through Joint Memorandum Circular No. 2023-003, agreed to adjust the current price ceiling.
The ceiling, which has been in effect since 2018 pursuant to Resolution Nos. 1 and 2 Series of 2018, issued by the now defunct Housing and Urban Development Coordinating Council, has now been deemed unresponsive to the current economic situation.
The adjustment came following months of thorough review and lengthy discussions between DHSUD and NEDA teams –scrutinizing all its pros and cons to the housing and real estate sector, particularly the home buyers, and the national economy in general, and amid clamor from developers’ groups.
Under the adjusted ceiling, socialized subdivision projects now cost not more than P850,000 from the current P580,000 with a minimum floor area of 28 square meters with a loft of at least 50 percent of the base structure or 32 sqm, subject to existing rules and regulations.
On the other hand, socialized condominium projects are now set at P933,320 for 22 sqm; P1,060,591 for 25 sqm, and P1,145,438 for 27 sqm for a four-storey building. For projects composed of five to nine-storeys, the pricing is P1 million for 22 sqm; P1,136,364 for 25 sqm and P1,227,273 for 27 sqm, and for 10 floors above projects, 22 sqm units cost P1,320,000; 25 sqm at P1,500,000 and 27 sqm at P1,620,000.