DHSUD Urged to Fast-Track License-to-Sell Approvals Amid Real Estate Delays
The Department of Human Settlements and Urban Development (DHSUD) is facing mounting pressure to accelerate the release of Licenses to Sell (LTS) as prolonged approval delays disrupt property launches and housing supply across the Philippines. Anthony Gerard Leuterio, founder of Filipino Homes, highlighted that developers are increasingly alarmed by the slowdown, with some waiting for months despite having completed all necessary requirements.
Centralization Creates Bottlenecks
Leuterio pointed out that the shift of approval processes from local offices to the national level has exacerbated the backlog. "There's no LTS for so many months. Approval is super delayed," he stated, emphasizing that this centralization is creating bottlenecks that the national office may struggle to manage efficiently. This has led to significant delays in project rollouts, affecting the entire real estate industry, particularly in the primary market where developers rely on pre-selling to fuel growth.
Impact on Primary Market and Sales
The primary market, which is crucial for urban development, is experiencing a notable slowdown. Leuterio explained, "Primary sales are very vital in the development of a city. These are projects that offer five- to six-year payment terms, which most buyers prefer so they can afford to own property." Without LTS approvals, developers cannot legally sell pre-selling units, effectively stalling launches originally scheduled for March and April this year. He added, "Developers are crying now. All are delayed," citing instances where a single developer is awaiting multiple LTS approvals.
The delays are also impacting real estate agents and brokers, many of whom depend on new project inventories to sustain their sales. Markets in key growth areas such as Ormoc, Butuan, Cagayan de Oro, Davao City, and General Santos, as well as established hubs like Cebu, Bacolod, Manila, Dumaguete, and Bohol, are eagerly awaiting new project launches.
Risk to Affordable Housing Access
Leuterio warned that these delays could limit access to affordable housing, especially for overseas Filipino workers (OFWs) who often rely on pre-selling projects with long-term payment schemes. "The Philippines needs new projects. These are affordable and designed for long-term payments, especially for OFWs," he stressed. While there are prescribed timelines for LTS processing once requirements are met, Leuterio noted that approvals ultimately hinge on DHSUD's prioritization.
Calls for Expedited Action
He urged the agency to expedite approvals, particularly for developers who have fully complied with requirements, cautioning that prolonged delays could dampen investment and slow urban development. "DHSUD must expedite the approval. Developers are now at the mercy of waiting," he concluded, underscoring the urgent need for action to prevent further disruptions in the real estate sector.
