In response to the call from developers, the Philippine Board of Investments (BOI) has announced the increase of threshold price per housing unit eligible for government tax incentives from P2 million to P3 million during the National Developers Convention in Cebu City last October 5, 2023 hosted by the Subdivision and Housing Developers Association (SHDA).
The official announcement was made by Mary Ann Raganit, Director of the Infrastructure and Service Industries Service at the BOI. In addition to the increased threshold, the BOI has also extended the income tax holiday (ITH) period from four years to six years.
These changes represent a significant shift in government policy and have been welcomed by the housing industry, particularly around 500 mass developers and housing professionals who attended the 2-day convention. The extended threshold for tax incentives and the longer ITH period will provide developers with increased financial incentives, making it more attractive for them to undertake housing projects.
Raganit noted that the BOI expects to see an influx of new project registrations following this announcement. These changes will not only benefit developers but also have the potential to stimulate economic growth and encourage more housing projects to address the nation's housing needs.
In line with these developments in the housing industry, day 1 of the SHDA's National Developers Convention addressed critical issues and concerns within the housing industry. Department of Human Settlements and Urban Development (DHSUD) Secretary Jose Rizalino Acuzar graced the event and delivered the message of President Ferdinand "Bongbong" Marcos Jr.
Pag-IBIG CEO, Ms. Marilene Acosta delivered her keynote address for the convention and was followed by Dr. Stan Padojinog, President of the University of Asia and the Pacific who mentioned in his speech other factors on the Marcos administration's Pambansang Pabahay Para sa Filipino Housing program and its goal of building at least 6 million housing units in six years.
Discussions during the breakout sessions encompassed a wide range of topics, including the call for collaborative housing roadmap, incentives for developers as part of the Survey of Income and Program Participation 2022, as well as breakout sessions tackling community development through renewable and sustainable materials, real estate tech trends, and building resilient communities.
With this year's theme focusing on local development, SHDA National President Ar. Leonardo Dayao Jr. emphasized the steps SHDA is taking in order to empower the local housing sector by collaborating with Local Government Units (LGU).
"Several developers of ours here are partnering with their different LGUs. We have one in Iloilo, Novaliches, so we have several developers already. The idea here is that we will partner with the local government who has the land so that we can help build and then make housing affordable," Dayao stated.
Among the notable figures in the housing industry and local government officials who attended the convention where Cong. Eduardo "Edu" Rama, Representative of the South District of Cebu City who delivered the welcome message to kick off the event.
SHDA National Chairman, Ms. Arlene Keh stated that "The reason why we have the convention yearly is to be able to assess where we are against the roadmap so that we know if we need to adjust strategies or we need to create new ones with the objective to be able to provide housing for each Filipino family."
The convention sponsors for the event include 8990 Holdings Inc., Banco de Oro (BDO), Bank of the Philippine Islands (BPI), Holcim, MyCitiHomes, China Bank, APEC Homes, Davies Paints Philippines, Pag-IBIG Fund (HDMF), Joy-Nostalg, SMDC, Ayala Land, Phinma Construction Materials Group, Steeltech Colored Roofing, EastWest Bank, and Cebu LandMasters.