The Subdivision and Housing Developers Association (SHDA) yesterday said the new guarantee ceilings for low- and medium-cost housing packages will enhance the accessibility and affordability of homes for Filipino families.
In Joint Memorandum Circular No. 2024-001 dated July 5, 2024, National Economic and Development Authority (NEDA) and the Department of Human Settlements and Urban Development (DHSUD) set the ceilings for low-cost housing to P4.9 million and for medium-cost housing to P6.6 million.
Based on the most recent adjustment in 2007, the highest cap for low-cost housing (level 3) was between P1.25 million and P3 million and medium cost was at P3 million to P4 million.
SHDA said these adjustments address the need to align housing costs with current economic conditions, considering rising material costs, labor expenses, and overall inflation trends.
“This adjustment is a significant step towards making housing more accessible to Filipino families,” said Leonardo Dayao Jr., SHDA chairman.
Joy Manaog, SHDA president said, 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,” Manaoag said, adding rising material costs, labor expenses, and overall inflation trends were key factors considered in these adjustments.
According to SHDA, NEDA’s economic analysis highlighted 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.
In 2007, the ceilings were as follows: Level 1-A (socialized) at 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 P3 million.
Medium cost housing were above P3 million to P4 million; and open market – above P4 million.
The price ceilings for socialized and economic housing have been revised several times since 2007 through various resolutions due to the steadily increasing costs of raw land, development, construction materials, and labor.
