The Philippine government has given the green light to increase the maximum selling price for socialized housing units, a strategic move designed to jumpstart delayed developments and motivate the private sector to build more affordable homes. This adjustment directly supports the Marcos administration's flagship Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
New Price Caps for House-and-Lot and Condo Units
Under Joint Memorandum Circular (JMC) 2025-001, issued by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev), the new ceilings are now in effect. For socialized house-and-lot packages, the maximum price has been set at P844,440 for units measuring 24 to 26 square meters. For larger homes of 27 square meters and above, the cap is now P950,000. These revised figures already incorporate costs for land acquisition and development.
For condominium projects categorized as socialized housing, price limits will differ based on the type of building structure. Furthermore, the circular introduces significant flexibility for projects in highly urbanized areas with expensive land. It allows for an additional cost allowance of up to P200,000 for sites where the zonal land value reaches P40,000 per square meter or higher.
Addressing Rising Costs and Project Viability
Officials stated that the primary driver for this update is the sustained increase in construction and land development expenses. The previous price ceilings, which had become outdated, were making it financially challenging for developers to launch new projects without incurring losses, thereby stifling the supply of affordable housing.
DHSUD Secretary Jose Ramon Aliling, who signed the memorandum with DEPDev Secretary Arsenio Balisacan, emphasized that aligning prices with current market realities is crucial. This alignment ensures project viability for builders while maintaining affordability for low-income Filipino families. "Following President Marcos Jr.'s directive for decent and dignified housing, this circular will lead to better, bigger socialized housing units for homebuyers and serve as motivation for private developers to launch more projects," Aliling said in a statement.
Implications for Developers, Buyers, and the 4PH Program
The updated price caps will apply exclusively to projects that submit new applications for a License to Sell after the circular takes effect. These new ceilings are mandated to remain in force for at least three years. This policy shift is a direct response to the mandate of Republic Act 11201, which requires a review of socialized housing price limits at least every two years to reflect economic conditions.
Secretary Aliling added that stimulating more project launches will ultimately benefit homebuyers by providing them with more choices at competitive prices, accelerating the nationwide rollout of the 4PH Program. All private developers must adhere to these new standards alongside existing regulations under Batas Pambansa 220. The implementing rules for the revised ceilings are required to be published within 30 days of the circular's approval.
