NEW GUARANTEE CEILINGS FOR LOW-AND MEDIUM-COST HOUSING PACKAGES SET

August 10, 2024 Headlines

Addressing housing backlogs

MANILA

The Department of Human Settlements and Urban Development (DHSUD) have approved new guarantee ceilings for low- and medium cost housing packages through Joint Memorandum Circular No. 2024-001, according to the
Subdivision and Housing Developers Association (SHDA). The recommendation was based on NEDA’s price
inflation analysis which led to the establishment of new guarantee ceilings, setting at P4.9 million for low-cost
housing and P6.6 million for medium-cost housing.

Pursuant to the mandate to jointly determine price ceilings for socialized, low-cost, medium-cost, and open housing every two years, the DHSUD and NEDA have set the ceilings as follows: Level 1 A (Socialized) – P 300,000 and below; Level 1-B – Above P 300,000 to P 500,000; Level 2 Above P 500,000 to P 1.25 million; Level 3 – Above P 1.25
million to P 3.0 million; Medium Cost – Above P 3.0 million to P 4.0 million; and Open Market Above P 4.0 million.

It provide a more realistic framework for housing developers and make it easier for potential homeowners to
purchase properties within their budget, NEDA economic analysis pointed. Rising material costs, labor expenses, and overall inflation trends were among the factors considered in these adjustments. The adjustment was actually in response to a request from the Subdivision and Housing Developers Association (SHDA) which addresses the need to align housing costs amid economic conditions.

These adjustments address the need to align housing costs with current economic conditions, considering rising material costs, labor expenses, and overall inflation trends. “This adjustment is a significant step towards making housing more accessible to Filipino families,” said SHDA Chairman, Ar. Leonardo Dayao Jr. in a release. ”We are grateful to NEDA and DHSUD for considering our request and understanding the challenges faced by the housing sector.”

SHDA President lawyer Joy Manaog for her part said: “The revised ceilings will help bridge the gap between rising development costs and the affordability of homes for many Filipinos. This is a positive development for both developers and prospective homeowners.”

Primo Agatep/ABN