Incentives sought to sell homes at ‘substantial’ discount
Property developers are willing to sell completed condominium units at “substantial” discounts if the government grants them incentives or credits toward their socialized housing obligations, the Private Sector Advisory Council (PSAC) said.
This is part of an Urban Housing Affordability Program pitched by PSAC Infrastructure Sector to President Marcos.
Under the plan, higher-priced, ready-for-occupancy (RFO) units will be offered to qualified buyers at lower prices. In exchange, developers earn credits toward their balanced housing requirements.
Republic Act No. 10884 requires developers to undertake socialized housing equivalent to at least 15 percent of the area or cost of a subdivision project. For condominium projects, the minimum is 5 percent.
PSAC wants discounted sales of RFO units to qualify as another form of compliance.
The program could help reduce Metro Manila’s condominium inventory while opening more homes to buyers priced out of the market.
The proposal comes as Metro Manila continues to carry a large stock of completed but unsold condominiums.
Leechiu Property Consultants estimated that about 32,400 of the capital region’s roughly 81,000 unsold residences were RFO units as of the first quarter. By end-June, unsold condominium inventory had risen to a record 82,900 units across 616 buildings.
“The industry is committed to continue supporting the government’s socialized housing program, and we see a great opportunity to partner with DHSUD (Department of Human Settlements and Urban Development) and other government agencies in providing more affordable housing for our fellow Filipinos,” Ayala Corp. chief social infrastructure officer Paolo Borromeo said.
