The Philippine real estate market has seen a significant update with new price ceilings for low- and medium-cost housing. Under a joint declaration by the Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development Authority (NEDA), these adjustments reflect the country’s evolving economic conditions.
New Price Ceilings for 2024:
•Low-Cost Housing: Now set at ₱4.9 million
•Medium-Cost Housing: Now set at ₱6.6 million
These new limits provide more flexibility for both developers and potential homeowners, allowing for higher-quality housing options while addressing inflation and the rising cost of materials.
Previous Price Ceilings:
•Low-Cost Housing: ₱2.5 million
•Medium-Cost Housing: ₱3 million to ₱4 million
Why the Adjustment?
Since 2007, the price ceilings for socialized and economic housing have undergone several revisions to keep pace with increasing costs for land, construction, and labor. The latest adjustments are part of a broader effort to make housing more accessible while still maintaining quality.
Under the mandate of DHSUD and NEDA, price ceilings for various housing segments are revised every two years. The categories include:
•Level 1-A (Socialized): ₱300,000 and below
•Level 1-B: ₱300,000 to ₱500,000
•Level 2: ₱500,000 to ₱1.25 million
•Level 3: ₱1.25 million to ₱3 million
•Medium-Cost: ₱3 million to ₱4 million
•Open Market: Above ₱4 million
The recent increase from ₱2.5 million to ₱4.9 million for low-cost housing, and from ₱4 million to ₱6.6 million for medium-cost housing, marks a significant step in addressing housing affordability and expanding access to better-quality homes.
The Impact on Developers and Homebuyers
This adjustment offers substantial benefits:
1. For Developers: The new ceiling accommodates rising costs of raw materials and labor, allowing developers to continue delivering quality homes while staying within the “affordable housing” classification.
2. For Homebuyers: It broadens the market for potential homeowners, making it easier for families to purchase homes that align with current economic conditions and their budgets.
Looking Forward
As the Philippine economy continues to evolve, these new price ceilings offer a more realistic framework for housing development, promoting growth and stability in the real estate market. This shift also highlights the government’s commitment to ensuring that more Filipinos can afford quality housing in the years to come.
Check out available properties in the Philippines: www.yourhome.ph
Tags