by: Irma Isip
Malaya Business Insight
September 29, 2015
Developers of socialized housing –those that cost P450,000 to build– aim to produce one million houses from 2012 to 2016, in line with goal to hit 7 million additional homes in 15 years.
A roadmap prepared by the Subdivision and Housing Developers Association (SHDA) shows the SHDA had produced 730,000 new residential units between 2012 and 2014 – 211,010 units in 2012, 294,357 in 2013 and 225,105 in 2014.
That is an average of about 220,000 units a year, well within the target.
The roadmap said by 2022, SHDA hopes to have built 2 million units.
The 2030 target of 7 million housing units will address 70 percent of the 10.1 million housing needs by that year, which is double than the projected backlog of 5.5 million.
About 60 percent of the projected demand for 2016 t is in the economic and socialized houses. Economic housing are those with a value of P1.7 million.
The roadmap, presented at the 24th SHDA National Developers Convention at the Makati Shangri-La last September 18, calls for the implementation of a comprehensive government housing subsidy program for target segments to enhance the affordability of socialized houses.
SHDA noted the need to generate and mobilize more funds for end-user financing of socialized houses.
The SHDA is confident of hitting the 2016 citing the initial gains of the industry.
SHDA said for one, the Housing and Land Use Regulatory Board (HLURB) and the Board of Investments (BOI) have rolled out policis that support the delivery of more socialized housing units nationwide.
BOI has listed economic and low-cost mass housing in the 2014-2016 Investment Priorities Plan entitling developers to a host of incentives which would encourage more developers to venture into this segment.
HLURB has also adjusted the price ceiling on socialized housing toP450,000 from P400,000 and of economic housing from P1.25 million to P1.7 million.
Pending bills also would lend support to the housing industry such as the inclusion of medium-rise buildings in the definition of socialized housing an consider it as a mode of compliance.
BOI-registered developers are required to allocate 20 percent of their project cost to socialized housing.
SHDA cited the need “ to go vertical” as prices of land, if available, especially in Metro Manila are high.
The group also cited the contribution of residential construction to the economy.
Data from the Philippine Statistics Authority (PSA) show residential construction was valued in 2014 at P152.75 billion, or a share of 2.1 percent of GDP that year.
The industry in 2014 employed 351,338.
“Industry production level is within the 1-million target,” the roadmap said.