A real estate industry stakeholder has called on the Department of Human Settlements and Urban Development (DHSUD) to accelerate the approval of housing projects and maintain stable regulations, warning that delays and policy changes could worsen the country's housing shortage.
In a statement, Anthony Gerard Leuterio, president of A Better Real Estate Philippines (Abrep), said prolonged delays in the issuance of Licenses to Sell (LTS) are slowing the rollout of new housing developments nationwide and reducing housing options for buyers, particularly overseas Filipino workers (OFWs).
Leuterio noted that developers in key cities such as Cebu, Davao, Cagayan de Oro, General Santos, Bacolod, Dumaguete, Ormoc and Metro Manila have reported extended waiting periods for LTS approvals despite submitting complete documentary requirements. He attributed the bottlenecks to the centralization of LTS approval authority at the national level, which hampers developers' ability to launch pre-selling projects.
"The people suffering are not just corporations. They are small developers, community builders, and Filipino families waiting for homes," Leuterio said.
To improve transparency and accountability, Leuterio urged DHSUD to publicly disclose the number of LTS approvals issued over the past six months, including a breakdown by region, project category and development type.
He also expressed concern over what he described as regulatory changes imposed on projects already under development. Some developers, he said, are being required to comply with new rules after securing financing, hiring contractors and making commitments to buyers. Such policy shifts during project implementation could discourage investments and delay housing construction.
"When projects stall, housing supply shrinks. When housing supply shrinks, prices rise," Leuterio added.
The impact of approval delays extends beyond developers and brokers, he said, noting that many OFWs rely on pre-selling projects because of their more affordable payment terms and lower initial costs. "When LTS approvals are delayed and new projects cannot legally be launched, these buyers lose their options," he said.
Leuterio emphasized that housing development is a key economic driver, supporting demand for construction materials, appliances, utilities, banking services and employment across multiple sectors. He noted that real estate remains among the largest recipients of bank lending and sustains a broad network of businesses and workers throughout the property value chain.
Citing industry estimates, Leuterio said the country's housing backlog exceeded six million units in 2023 and could reach 13 million units by 2040 if current trends persist. Given the scale of the housing deficit, he called for stronger collaboration between government and the private sector to increase housing production while maintaining consumer protection standards.
"We do not ask for the removal of regulations. We ask for regulations that are fair, consistent, timely and developed with industry participation," he said.
Leuterio reiterated that the real estate sector remains willing to work with government agencies to expand access to housing and address one of the country's most pressing social and economic challenges.
