Gov’t raises price cap for low-cost housing to attract more developers

The government has again increased the price ceiling for housing projects to encourage more developers to build affordable homes for low-income Filipino families.

The increased price ceilings are set in the Joint Memorandum Circular (JMC) No. 2025-001 issued by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning, and Development (DepDev).

Under the new rules, the selling price for socialized subdivision or horizontal housing projects is at P844,440 for 24-square-meter to 26-sq-m units, and at P950,000 for units with a floor area of 27 sq m and above.

This was higher than the P850,000 selling cap set in 2023.

On the other hand, the selling price ceiling for socialized condominium or vertical developments is set between P1.28 million and P1.8 million, depending on the number of stories of the building and unit size:

For buildings with three to five floors: P1.28 million for unit sizes of 24 sq m to 26 sq m; and P1.5 million for units 27 sq m and above.

For condominiums six stories and higher: P1.6 million for units with a floor area of 24 sq m to 26 sq m; and P1.8 million for those 27 sq m and above.

This is higher than the 2013 limits set between P933,320 and P1.62 million.

All-in price ceiling

The price ceiling is inclusive of all costs, such as land acquisition and development, and the construction of the house or unit.

The total floor area shall cover all levels and rooms of the housing unit, excluding lofts and mezzanines.

The latest JMC also introduced a maximum amount allowed to be added to the price of socialized condominium units in the National Capital Region and other highly urbanized cities.

The JMC was signed on Dec. 1 by Human Settlements Secretary Jose Ramon Aliling and DepDev Secretary Arsenio Balisacan, and its implementing rules and regulations took effect on Dec. 23.

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The adjustment was in line with the Expanded Pambansang Pabahay para sa Pilipino Program or 4PH, the ambitious program of President Marcos to build one million housing units each year until 2028 to address the housing backlog of 6.5 million.

Far from target

Sen. Sherwin Gatchalian, however, said that the government should scale down its target of one million housing units yearly. He noted that in the last three years, the DHSUD has completed only 438,000 housing

projects. Among the problems raised by the agency was the lukewarm participation of developers in the 4PH.

These included the lack of capacity of some developers to comply with requirements, including permits, licenses, equity and the capacity to borrow, as well as the “decreased appetite” due to a slump in retail prices of condo units driven by sluggish demand and oversupply following the ban on Philippine offshore gaming operators or Pogos.

Under Republic Act No. 11201, or the DHSUD Act, the price ceiling for socialized housing may be reviewed and revised by the DHSUD and DepDev at any time, but not more than once every two years, to align with prevailing economic conditions.