Cebu developers seek stronger government support to keep housing affordable

CEBU CITY — Property developers in Central Visayas are calling on the government to provide stronger support for the housing sector, saying lower financing costs, faster approvals, better infrastructure and policy reforms could help keep homes affordable despite rising land and construction costs.

The Subdivision and Housing Developers Association (SHDA) Central Visayas said closer government-private sector collaboration is needed as developers face mounting pressures from expensive land, high interest rates, regulatory delays and increasing development costs.

Among the proposals raised by industry representatives is the possibility of preferential or lower interest rates for qualified developers and housing projects through government financial institutions.

Harold See said financing costs are among the factors directly affecting housing affordability and suggested that government-backed lenders such as the Development Bank of the Philippines, Land Bank of the Philippines, or Pag-IBIG could help ease the burden.

“If, for example, the government can really help us give preferred rates to developers, maybe certain projects given a certain price cap, that would really help in terms of affordability,” See said.

Developers are also seeking government action on land costs, which they identified as one of the biggest barriers to producing more affordable homes.

See pointed to models where the government could help provide or acquire land while the private sector focuses on building housing units, an arrangement he said could bring down the cost of homeownership.

He also said lower financing costs, combined with government support for land acquisition, could help narrow the country’s housing gap.

SHDA Central Visayas President Ken Salimbangon said affordable housing is particularly difficult to develop in highly urbanized areas such as Cebu City because of high land prices.

He said the continued concentration of jobs and development in urban centers also drives more people from the countryside and neighboring islands to cities, adding to housing demand.

Salimbangon said development should also be encouraged outside major urban centers, allowing families to access jobs and housing opportunities closer to their communities.

Another major concern is the speed of government approvals.

Developers said delays in the issuance of licenses to sell and other regulatory requirements could slow down project launches and reduce the supply of available housing.

While the industry said it supports proper regulatory scrutiny, See warned that prolonged delays could ultimately contribute to higher prices by creating a shortage of housing supply.

“By not issuing licenses to sell because you're trying to vet all these documents, it would also push the housing prices,” he said.

The industry is expected to raise these concerns during the SHDA Central Visayas Housing Summit on September 11 at Radisson Blu Cebu.

The summit, themed “Breaking Barriers, Building Forward: Accelerating Housing Development through Regulatory Reform, Cost Resilience and Resource Security,” will bring together leaders from government, real estate, construction, urban planning, power, water and academe.

Discussions will focus on regulatory reform, housing affordability, property valuation, power and water security, infrastructure and the identification of future growth corridors in Central Visayas.

The group said it is not simply seeking to air complaints against the government but wants to work with public agencies in developing practical solutions.

“This event is not something that we are complaining about the government,” Salimbangon said. 

“It’s something that we would like to work with the government on how we could do the ease of doing business,” he added. 

Uy said the discussions and recommendations from the summit could eventually serve as reference for position papers to be pursued by SHDA Central Visayas and the national organization.

The developers hope the dialogue will result in concrete action that would help speed up housing production, reduce costs, and make homeownership more accessible to more Filipinos.