10,000 Cebu housing units stalled by license to sell delays

Local

MORE than 10,000 housing units in Cebu remain unavailable to buyers due to pending Licenses to Sell (LTS), a situation that industry stakeholders warn is beginning to restrict housing supply and reduce affordable options for Filipino homebuyers, particularly overseas Filipino workers (OFWs).

Anthony Gerard Leuterio, president of the A Better Real Estate Philippines (ABREP) Movement, said delays in LTS approvals are preventing developers from launching new pre-selling projects, resulting in fewer units entering the market.

“The issue is becoming alarming because there are fewer projects available for sale,” Leuterio said in a statement.

“Without LTS approvals, developers cannot introduce new projects, leaving buyers with limited choices,” he added.

The slowdown has been most noticeable in the P3 million to P6 million housing segment, a price range that remains highly attractive to OFWs seeking long-term investments and future homes.

According to Leuterio, many overseas workers prefer pre-selling properties because they are generally more affordable than ready-for-occupancy (RFO) units.

“With fewer pre-selling developments available, buyers are left with mostly RFO units, which typically come at higher prices,” he said.

Despite rising property values, demand continues to be concentrated in the affordable housing market. Leuterio noted that only a small portion of buyers are looking for larger or higher-priced units, while the majority remain focused on affordable homes and condominium projects.

Beyond affecting buyers, the shortage of marketable housing inventory is also impacting thousands of real estate salespersons who depend on active projects for their livelihood.

Industry groups, including the Accredited Real Estate Salespersons of the Philippines, have raised concerns over the lack of new projects entering the market.

Leuterio urged government agencies to adopt a more predictable and consultative approach to housing regulations and project approvals, emphasizing that faster processing of LTS applications would help boost housing supply and support the government’s Pambansang Pabahay para sa Pilipino (4PH) program.

The Department of Human Settlements and Urban Development (DHSUD) earlier acknowledged delays in processing housing-related applications.

In a separate statement released last May 14, Housing Secretary Jose Ramon Aliling said an internal audit traced many pending licenses and regulatory transactions to bottlenecks at regional offices.

To address the issue, DHSUD has assigned undersecretaries to oversee regional offices, clear pending applications and implement its Zero Backlog Program.

The department also expects ongoing digitalization efforts to streamline processes and prevent future delays.(MyTVCebu)