Solon calls for deeper government-developer ties to ease housing crunch
A lawmaker is pushing for stronger collaboration among government agencies, real estate developers, and housing finance institutions to bridge the gap between residential property prices and the purchasing capacity of Filipino families.
Atty. JP Padiernos, a member of the House Committee on Banks and Financial Intermediaries, said enhanced public-private partnerships are necessary as the property sector grapples with a sales dip and persistent affordability challenges.
The initiative aims to identify practical ways to make homeownership attainable through manageable monthly installments while ensuring developers can deliver quality housing at commercially sustainable prices.
Padiernos has authored and co-authored at least seven House bills concerning condominium redevelopment, urban development, and socialized housing.
Data from the Philippine Statistics Authority’s 2020 Census of Population and Housing recorded roughly 28.5 million housing units nationwide, with 25.19 million occupied, alongside 26.38 million households.
While the roughly 1.18 million difference between households and occupied units points to housing pressure, it does not serve as an official estimate of the housing backlog or the number of families capable of buying homes.
Padiernos stressed that the challenge extends beyond simply building more houses.
"The challenge is not simply to build more houses, but to ensure that available homes match household incomes, financing capacity, location preferences,and actual housing needs," he said.
The push comes amid active figures in the formal housing-finance market.
The Pag-IBIG Fund reported releasing ₱69.19 billion in housing loans covering 43,051 units during the first half of 2026, marking a 15 percent increase in loan value and a 9% rise in units financed year-on-year.
Socialized housing loans for minimum-wage and low-income members reached ₱6.70 billion, financing 6,601 units—surging 118 percent and 132 percent, respectively, from the same period last year.
Pag-IBIG currently offers a subsidized 3% annual interest rate for eligible socialized-housing borrowers, promotional rates of 4.5% and 5.75 percent for qualifying loans in other price categories, and a maximum loan ceiling of ₱10 million subject to program conditions.
Padiernos noted these measures offer a foundation for examining how financing assistance can help qualified households purchase homes otherwise beyond their reach.
However, he warned that the property market continues to face a fundamental mismatch between demand and available supply.
According to global real estate research firm Colliers, Metro Manila recorded roughly 79,200 unsold condominium units at the end of 2025—including nearly 30,000 ready-for-occupancy units—while its second-quarter 2026 report projected residential vacancy to hit 25.6% by year-end. Colliers identified economic and affordable condominiums as primary demand drivers in the first half of 2026, highlighting that affordability, financing access, and product alignment are vital to market recovery.
Padiernos cautioned that unsold inventory does not equate to affordability for families in need.
"Prices, down-payment requirements, monthly amortization, location, and loan eligibility can prevent potential buyers from purchasing available units, while developers face financing, maintenance, and other costs when inventory remains unsold," he said.
He added that the proposed initiative would evaluate whether targeted financing assistance, efficient construction methods, improved infrastructure coordination, and streamlined government approvals could reduce avoidable costs and expand housing access without compromising construction quality or buyer protection.
Meanwhile, major property developers posted varied results in the first half of 2026. Ayala Land Inc. led peer performance with ₱41 billion in property development revenues, followed by Megaworld Corp. at ₱27.2 billion, SM Prime Holdings at ₱20.9 billion, and Robinsons Land Corp. at ₱7.1 billion.
Despite reservation slowdowns, ALI reported an improvement in residential inventory levels—dropping from 18 months in the first quarter to 15 months—and turned over nearly 6,000 residential units across 40 projects during the six-month period, underscoring the delicate balance between supply alignment, buyer affordability, and developer financial sustainability.