Mandaue City Mayor Thadeo Jovito “Jonkie” Ouano has admitted that a severe lack of available land is now the city’s biggest obstacle to relocating displaced families, overtaking flooding and traffic as the most pressing local crisis.
Housing crisis surpasses flooding and traffic
Speaking on the city’s development priorities, Ouano said the local government is struggling to keep up with the demand for housing as Mandaue continues to attract workers and businesses from across Central Visayas. “Besides flooding and traffic, which are always there and cannot be completely eliminated—housing is the ultimate challenge,” Ouano said.
He stressed that the city has adopted a policy of not evicting informal settlers or residents living in danger zones unless permanent relocation sites are ready. “We do not want to relocate anyone unless we have a proper relocation site ready for them,” he said.
Economic growth fuels demand
Ouano said Mandaue’s strong economy has become both an advantage and a challenge. The city’s growing employment opportunities continue to draw thousands of workers from neighboring cities and provinces, pushing the demand for affordable housing beyond the available supply. However, creating new relocation communities has become increasingly difficult because of Mandaue City’s limited land area and dense urban development.
Abandoned housing project in Cambaro
The mayor further said the city had previously identified a 3,000-square-meter property in Barangay Cambaro for a housing project, but the proposal was eventually abandoned after technical studies raised major concerns. Aside from compliance issues, the site posed environmental risks because constructing mid-rise residential buildings there could worsen flooding in nearby communities. The property also lacks a sufficient road right-of-way, making it unsuitable for a high-density housing development.
Consideration of land outside Mandaue
With few remaining vacant properties within the city, Ouano said the local government has considered acquiring land outside Mandaue for horizontal housing projects. However, the proposal has received resistance from prospective beneficiaries, many of whom prefer to remain close to their workplaces. “I completely understand their side because this is where they work,” the mayor said. “But that is exactly what makes this a massive challenge for our City.”
Investing in socialized housing
To address the shortage, Mandaue continues to invest in socialized housing while partnering with the National Government. The city is financing the construction of Building 3 of the Barangay Tipolo Residences using local funds, while Building 4 is also under construction. It is also tapping escrow funds from a 1,500-square-meter property in Barangay Opao to help finance the projects.
Despite these efforts, Ouano admitted that the additional housing units will barely dent the city’s backlog. Building 3 can accommodate only around 100 families, while about 700 families from vulnerable communities, including Pasilong and Bayanihan Village, still require immediate relocation.
To expand housing capacity despite the lack of land, the National Government’s Pambansang Pabahay para sa Pilipinong Mahirap Program is expected to take over the construction of Buildings 4 and 5, allowing the city to maximize limited space through vertical housing developments.
Priorities beyond housing
Beyond housing, Ouano said healthcare and education remain key priorities for his administration. The city continues to distribute free medicines in all 27 barangays and is moving forward with the upgrading of Mandaue City College and the city-run hospital. However, he noted that constructing new facilities is only part of the challenge. “Our next problem will be the hidden costs—procuring medical and educational equipment and hiring the personnel needed to operate these facilities,” he said.
To sustain these projects, Mandaue expects its annual budget to increase from P4.5 billion to between P4.8 billion and P5 billion next year, driven by improved local revenue collections. Ouano also said the city is preparing for the end of the grace period on its P3-billion loan from the Development Bank of the Philippines, during which it has been paying only interest. To strengthen its finances, the city is pursuing public-private partnerships that will generate new revenue from underutilized government assets, including the redevelopment of the Cebu International Convention Center grounds and the old Mandaue City Public Market site.
For Ouano, however, the immediate challenge remains clear: finding enough land to provide safe and permanent homes for hundreds of families while keeping them close to their jobs and communities.
