The Philippine government has implemented a significant adjustment to its socialized housing program, raising price ceilings to enable the construction of better-quality homes. Simultaneously, the Pag-IBIG Fund has committed to maintaining its low interest rates, ensuring that monthly amortizations stay within reach for Filipino workers.
Revised Price Caps Reflect Rising Costs
The Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development have issued new implementing rules. These rules introduce higher price caps for socialized housing units, a move officials say is a direct response to escalating costs for land, construction materials, and regulatory compliance.
Housing Secretary Jose Ramon Aliling explained that this recalibration is essential. It allows developers to improve the durability and quality of their constructions without making the final product unaffordable for the target market. The previous price limits had constrained builders' ability to deliver robust housing on a large scale.
Pag-IBIG's Pledge: Sustained Low Interest Financing
Despite the increase in unit prices, the Home Development Mutual Fund (Pag-IBIG) has assured the public that its concessional lending rates will remain in place. Pag-IBIG Chief Executive Marilene Acosta attributed this capacity to the fund's strong fiscal health.
Acosta stated that this strategy enables Pag-IBIG to support the construction of higher-quality homes while protecting borrowers from steep monthly payments. The low-cost financing is a cornerstone of the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) program.
New Price Ceilings and Payment Scenarios
The revised pricing structure is as follows:
- For socialized house-and-lot packages: Units measuring 24–26 square meters can now be sold for up to P844,440. Units of 27 square meters and above have a new ceiling of P950,000.
- For socialized condominium units: In buildings taller than five floors with units of at least 27 square meters, the maximum price is now P1.8 million.
- In Metro Manila and other highly urbanized cities, an additional allowance of up to P200,000 is permitted for select condominium projects, pushing the maximum possible price to P2 million.
For qualified borrowers, the attractive financing terms remain unchanged. They will continue to have access to a three percent interest rate for the first five years, which can be extended for another five years. This translates to very manageable monthly payments:
- Approximately P4,005 per month for a house-and-lot unit priced at the new ceiling of P950,000.
- Roughly P8,432 per month for a condominium unit priced at the maximum P2 million.
Furthermore, Pag-IBIG is offering an "Early Bird" promotion. The first 30,000 borrowers under this scheme can lock in the subsidized 3% rate for an extended period of 10 years.
A Dual Strategy for National Housing Goals
Government officials frame this two-pronged approach—higher price caps paired with sustained low-interest loans—as a strategic push to accelerate the delivery of housing nationwide. The policy aims to achieve multiple objectives simultaneously: speeding up construction, elevating building standards, and ultimately expanding homeownership among Filipino families.
The announcement was made on January 6, 2026, marking a proactive step by the administration to address the persistent challenges in the country's housing sector while adapting to current economic realities.
