Homebuyers, particularly overseas Filipino workers (OFWs), are facing fewer housing options and higher property prices as delays in the issuance of licenses to sell (LTS) continue to hold back the launch of new residential projects, according to an industry group.
Industry Leader Sounds Alarm
Anthony Gerard Leuterio, president of the A Better Real Estate Philippines (Abrep) Movement, said the slowdown in LTS approvals is constraining housing supply, especially in the affordable segment, while also affecting the livelihoods of thousands of real estate practitioners.
“The issue is already alarming because there are fewer projects available for sale,” Leuterio said. “Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options.”
Leuterio, who founded Filipino Homes, estimated that more than 10,000 housing units in Cebu alone are currently awaiting LTS approval, preventing developers from bringing the projects to market and further tightening housing supply.
Affordable Housing Squeeze
He said the shortage is particularly evident in the P3 million to P6 million housing segment, one of the most sought-after price ranges among OFWs looking to invest in property. With fewer pre-selling developments available, many overseas workers are losing access to lower-priced housing units that are typically purchased years before completion. Instead, buyers are increasingly limited to ready-for-occupancy units, which command higher prices.
“Many OFWs want to secure a property early while prices are still lower. What is happening now is that most available units are already near ready-for-occupancy, which are more expensive,” Leuterio said.
He noted that demand remains concentrated in affordable housing despite rising property prices. “Only about 10 percent of the market prefers bigger units. Most buyers want affordable homes and condominiums. Because there are fewer new projects, many OFWs are being deprived of the opportunity to own a house or condominium,” he added.
Impact on Real Estate Workers
The concerns come as the property sector grapples with rising construction costs, inflation, elevated borrowing rates and increasing regulatory requirements. Beyond homebuyers, Leuterio said the shortage of projects with approved LTS is affecting licensed brokers, accredited salespersons and independent agents who rely on a steady pipeline of housing developments.
“Most salespersons work on a project basis. They rely on projects with LTS. If there are no new projects to sell, their livelihood is affected,” he said. He added that the Accredited Real Estate Salespersons of the Philippines has also raised concerns over the declining number of marketable housing projects.
Risk of Informal Selling
Leuterio warned that prolonged shortages in legitimate housing inventory could encourage informal or unauthorized selling activities. “We want salespersons to remain legitimate and compliant. The industry needs a balanced housing environment that benefits both OFWs and underprivileged local buyers,” he said.
Abrep urged government agencies to adopt a more predictable and consultative regulatory framework, particularly on policies affecting housing development and balanced housing compliance. Leuterio said faster LTS processing would not only increase housing supply but also support the government’s Pambansang Pabahay para sa Pilipino (4PH) program.
“When projects move forward, 4PH can also grow because developers are required to allocate portions of their developments for socialized housing,” he said. He emphasized the need for broader consultations among developers, real estate practitioners and government agencies to ensure regulations remain practical while promoting housing production.
“The housing backlog remains significant. We need policies that protect buyers while also encouraging developers to build more homes and giving Filipinos more opportunities to own property,” he said.
DHSUD’s Statement
For its part, the Department of Human Settlements and Urban Development (DHSUD) said delays in processing housing-related applications have been traced mainly to regional offices rather than its central office. In a May 14 statement, Housing Secretary Jose Ramon Aliling said an internal audit found that many pending licenses, certificates and other regulatory applications were stalled at the regional level. To clear the backlog, DHSUD deployed undersecretaries to oversee its 17 regional offices, process pending applications and monitor performance under its Zero Backlog Program. Aliling added that the agency’s digitalization initiative is expected to streamline processes and prevent future delays.
