NEDA, DHSUD raise price ceiling for socialized housing 

The Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development Authority (NEDA) have agreed to adjust the price ceiling for socialized subdivision and condominium projects –noting the current pricing no longer responds to prevailing economic conditions.

DHSUD Secretary Jose Rizalino Acuzar and NEDA Secretary Arsenio Balisacan signed Joint Memorandum Circular No. 2023-003 on Friday adjusting the current price ceiling which has been in effect since 2018 pursuant to Resolutions Nos. 1 and 2 Series of 2018 issued by the Housing and Urban Development Coordinating Council (HUDCC).  

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, with utmost consideration to home buyers, and the national economy in general.

The DHSUD and NEDA are also in agreement on the huge economic pump-priming potentials of the housing and real estate sector.

Under the adjusted ceiling, socialized subdivision projects now cost no more than P850,000 from the current P580,000 for units with a minimum floor area of 28 square meters with a loft of at least 50% 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 22sqm; 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 27sqm, 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.

With the inclusion of land development cost, socialized condominium projects’ price ceiling is set at maximum P1,800,000.

The move is touted as a huge boost to the ongoing implementation of President Ferdinand R. Marcos Jr.’s flagship Pambansang Pabahay para sa Pilipino (4PH) Program as it could prompt active participation of and the much-needed investments from private contractors and developers.

The JMC is also expected to strengthen the partnership between the government and private sector in housing and real estate development, particularly on socialized housing for minimum wage earners and informal sellers, which could trigger massive economic activities in the sector and about 80 aligned industries.

JMC No. 2023-003 emphasized “…the existing price ceiling for socialized housing no longer responds adequately to prevailing market conditions, including rising development and construction costs, thereby, discouraging the private sector from building affordable houses for low-income and underprivileged families”.

“…to address the housing needs of approximately 6.5 million Filipino households, a two-pronged approach is necessary, which involves encouraging private sector participation in constructing socialized housing units and fully implementing the Pambansang Pabahay para sa Pilipino Program, led by DHSUD in collaboration with its key shelter agencies and local government units,” it added.

Republic Act 11201 or the Department of Human Settlements and Urban Development Act mandates the DHSUD and NEDA to determine the price ceilings for socialized, low cost or economic and middle-income housing. It provides that the price ceiling may be reviewed or revised any time, but not more than once every two years.