Private developers have welcomed the new price ceiling for socialized housing jointly set by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev), saying it reflects current market realities and could boost housing production.

In a social media post, the Subdivision and Housing Developers Association (SHDA) welcomed the issuance of Joint Memorandum Circular (JMC) 2025-001, signed by DHSUD Secretary Jose Ramon Aliling and DEPDev Secretary Arsenio Balisacan on 1 December, along with its implementing rules and regulations.

“The new price ceiling is reflective of the current increases in the price of land, labor and materials and will ensure the support for the production of socialized housing both vertical and horizontal projects,” SHDA said.

The issuance of JMC 2025-001 followed months of consultations through a technical working group between DHSUD and housing stakeholders, particularly private developers, as well as deliberations with DEPDev.

Upon assuming office in May, Aliling formed the technical working group to strengthen coordination between DHSUD and the private sector in support of President Ferdinand Marcos Jr.’s flagship Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

Aliling said price adjustments recommended by developer groups — SHDA, the National Real Estate Association, the Organization of Socialized and Economic Housing Developers of the Philippines, and the Chamber of Real Estate Builders Association — were approved under the joint circular. The groups were members of the technical working group.

“Patunay po ang JMC na ang ating gobyerno, sa pamumuno ni Pangulong Marcos Jr., ay nakikinig, sensitibo at kino-consider ang lahat ng sektor sa paglatag at implementasyon ng mga polisiya,” Aliling said.

“Ang JMC na ito ay resulta ng bukas, proactive at transparent na dialogo sa pagitan ng DHSUD at private developers. Inaasahan natin na tataas ang production ng socialized housing sa pagpasok ng 2026,” he added.

Aliling also assured that the circular was crafted with strong safeguards for homebuyers, noting that it mandates larger unit sizes for socialized housing.

Under the new rules, the maximum selling price for socialized house-and-lot packages is set at P950,000, while condominium units are capped at P1.8 million. The circular also increases the minimum floor area for socialized housing to 24 square meters.

The updated price ceiling complies with Republic Act No. 11201, which created DHSUD and requires the agency and the national planning body — now DEPDev — to jointly review and revise socialized housing prices in line with prevailing economic conditions, but not more than once every two years.