Phl property space: Something big is happening
What a difference a year makes.
The real estate sector experienced a boom in demand amidst limited supply and high prices in 2022. The property space’s landscape changed dramatically this year, and the industry is looking at another banner year in 2023.
Thanks to the government’s active investment in the real estate industry, the sector has remained resilient through the national socialized housing program.
Several reports indicated that the country’s housing sector produced and financed more than 1.07 million housing units from 2016 to 2021, or an average of 195,687 per year, which is the highest among previous administrations since 1975.
This achievement was made possible by the strong partnership between the government and private developers.
Gov’t role in resilient housing
The Department of Human Settlements and Urban Development has continued to roll out more shelter projects following its mandate to provide Filipino families access to decent, sustainable, and resilient housing communities nationwide.
Earlier this year, DHSUD also indicated its expectation that the housing projects’ construction, which is intended to alleviate the 6.5 million housing backlog until 2028, will begin in full blast by 2023.
The first construction phase is anticipated to begin in the first semester of 2023 or the first half of the current year, DHSUD Secretary Jose Rizalino Acuzar said.
“I am optimistic that we can start with the construction of the projects with complete documentary and legal requirements in a few months,” Acuzar said, referring to the township housing project agreement with 47 local government units.
However, the start of the actual construction takes longer for vertical housing projects, such as mid-rise and high-rise buildings—up to two years.
The Home Development Mutual Fund, also known as the Pag-IBIG Fund — provided P250 billion for the program — the Land Bank of the Philippines, the Government Service Insurance System, the Development Bank of the Philippines, and the Social Security System all supported the housing project.
The Organization of Socialized and Economic Housing Developers of the Philippines, the National Real Estate Association Inc., and other national private developers’ associations supported the said project.
DHSUD mulls 1% interest rate
To help ensure a healthy and thriving real estate sector, DHSUD said on 18 January that it seeks to reduce the interest rate of the government’s housing program to as low as one percent.
In a television program, DHSUD said that both the local and national governments might contribute to the cost of paying the interest rate for the Pambansang Pabahay Para sa Pilipino program.
“Instead of P7,000, it will be only P3,000,” Acuzar said.
However, DHSUD said it is aware that the six percent interest rate on housing loans prevents informal settlers from purchasing their own home.
“That six percent (interest rate) would translate to about P7,000 to P8,000 monthly. So the ISFs will not be able to handle that, especially the workers paid the minimum wage,” Acuzar mentioned.
For 20 years, Renalyn Odod has resided in an informal settlement along NIA Road in Quezon City with her children and grandchildren in a small house.
She said their house was burned twice, adding that they also fear that it could be demolished when the owner takes over the land.
Odod acknowledged that she could not get their own house because she could not afford to pay the interest rate.
“(But my) dream is for my grandchildren to have a house and be able to study well. Even if I die, at least I know that my grandchildren will have a good future,” Odod said.
“That’s important because you will not worry if you will be displaced or your house will be demolished,” Odod added.
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