LEADERS of the housing and subdivision industry are the latest group of businessmen to air their gripes against too many signatures of government regulators needed to start a project.
At the recent National Real Estate Convention 2023 in Cebu, Anthony Gerard Leuterio, founder and CEO of Filipino Homes, said the Philippines is the strictest government when it comes to approving housing or subdivision development projects.
“In order to build a house, meaning to create a subdivision, you need more than 172 signatures. Imagine, we are so weird. The Philippines is the most regulated, very, very regulated country,” Leuterio told reporters.
According to the subdivision developers, it would take up to two years to complete the processing of permits from agencies and local government units. They said that in other countries, only 10 signatures are required when applying for the approval of a housing project.
Leuterio’s observation that “more signatures, the more corruption” is common knowledge, for why would officials insist on overregulation but for reasons of more opportunities to make money on the side.
‘“Help us maximize our role in the growth of the housing industry by lessening the regulation and imposing fewer permits.”’
This sorry status in the housing sector reminds us about a similar problem encountered by the telecommunications industry during the pre-COVID 19 pandemic days. Incessantly pressured by former President Rodrigo Duterte to improve cellphone and internet services, the two leading telcos had to tell him bluntly that their performance was hampered by the sheer number of signatures needed just to construct a cell tower – more than 100.
When the pandemic showed no signs of abatement, people had to stay home much longer, and reliable internet and cellphone services were needed. This led to the passage of the Bayanihan to Recover as One Act or Bayanihan 2 which includes a provision that fast-tracks the construction of telco towers by suspending the requirements to secure permits and clearances. The only exception is the building permit issued by the Office of the Building Official pursuant to the National Building Code of the Philippines, and the height clearance permit from the Civil Aviation Authority of the Philippines.
One particularly useful provision of the law is that one that streamlines the regulatory processes for the development of digital, internet and satellite technology infrastructure.
The law hastened the construction of digital and internet infrastructure all over the country, benefiting all Filipinos even after the pandemic. Perhaps the administration of President Ferdinand Marcos Jr. should learn a lesson or two from this pandemic experience.
The housing sector recognizes that the backlog of housing units is serious, with six million houses needed to be constructed to bridge the gap between demand and supply.
Developers are hoping that in 2024 and in the next five years, they can embark on massive expansion projects that are in step with the national economic recovery efforts.
The construction of more houses, including their marketing and promotion, will serve as a direct catalyst for economic development, with every house constructed able to create 60 new jobs. Demand for housing and real estate investments is high and continues to increase among overseas Filipino workers. But where will they put their investible funds if there are no houses to buy?
The developers have a strong and valid message to the administration of President Marcos: “Help us maximize our role in the growth of the housing industry by lessening the regulation and imposing fewer permits.”