The Subdivision and Housing Developers Association (SHDA) is lauding the move by the National Economic and Development Authority (NEDA) and the Department of Human Settlements and Urban Development (DHSUD) in approving new guarantee ceilings for low- and medium-cost housing packages.

Such move by NEDA and DHSUD was in response to a request from SHDA for an adjustment, formalized through Joint Memorandum Circular No. 2024-001, addressing the need to align housing costs with current economic conditions.

SHDA chairman, Architect Leonardo Dayao Jr. said SHDA has been actively sending its position to the proper agencies for a review of the ceiling.

In their request to NEDA on 22 July for approval from the Philippine Guarantee Corporation (PHILGUARANTEE), NEDA Undersecretary for Policy and Planning, Dr. Rosemarie G. Edillon wrote the SHDA, through Dayao and SHDA President Atty. Joy Manaog, saying, “The adjustment was deemed timely and necessary as it accounts for the country’s prevailing economic conditions.”

The recommendation, based on NEDA’s price inflation analysis, led to the establishment of new guarantee ceilings, setting these at P4.9 million for low-cost housing and P6.6 million for medium-cost housing.

Significant step

“This adjustment is a significant step towards making housing more accessible to Filipino families. We are grateful to NEDA and DHSUD for considering our request and understanding the challenges faced by the housing sector,” Dayao said.

For her part, Manaog emphasized the importance of this decision, stating, “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.”

Joint Memorandum Circular No. 2024-001 specifies the following adjustments: Low-Cost Housing ceiling adjusted to P4.9 million, and Medium-Cost Housing ceiling adjusted to P6.6 million.

Rising material costs, labor expenses, and overall inflation trends were key factors considered in these adjustments.

NEDA’s economic analysis highlighted that these new ceilings would provide a more realistic framework for housing developers and make it easier for potential homeowners to purchase properties within their budget.

Pursuant to their 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) — P300,000 and below; Level 1-B — Above P300,000 to P500,000; Level 2 — Above P500,000 to P1.25 million; Level 3 — Above P1.25 million to P 3.0 million; Medium Cost — Above P3.0 million to P4.0 million; and Open Market — Above P4.0 million.