DHSUD, NEDA approve price increase for socialized subdivision, condo projects

The national government has approved to increase the ceiling for socialized subdivision and condominium projects amid the prevailing economic conditions, which it said, triggered the need for price adjustment.

The price adjustment was sealed with the Joint Memorandum Circular (JMC) No. 2023-003 signed by top officials of the Department of Human Settlements and Urban Development (DHSUD) and the National Economic and Development Authority (NEDA).

Under the adjusted ceiling, socialized subdivision projects now cost no more than P850,000 from the current P580,000 for units with a minimum floor area of 28 square meters (sqm) with a loft of at least 50 percent of the base structure or 32 sqm, subject to existing rules and regulations.

On the other hand, socialized condominium projects are now set at P933,320 for 22sqm; P1,060,591 for 25 sqm, and P1,145,438 for 27 sqm for a four-storey building. 

For projects composed of five to nine-storeys, the pricing is P1 million for 22 sqm; P1,136,364 for 25 sqm and P1,227,273 for 27sqm, and for 10 floors above projects, 22 sqm units cost P1,320,000; 25 sqm at P1,500,000 and 27 sqm at P1,620,000.

With the inclusion of land development cost, socialized condominium projects’ price ceiling is set at maximum P1,800,000.

DHSUD Secretary Jose Rizalino Acuzar explained that the current price ceiling was still based on the 2018 economic conditions.

“The adjustment came following months of thorough review and lengthy discussions between DHSUD and NEDA teams –scrutinizing all its pros and cons to the housing and real estate sector, with utmost consideration to home buyers, and the national economy in general,” said Acuzar.

In the memorandum circular, both Acuzar and NEDA chief Secretary Arsenio Balicasan also agreed on the huge economic pump-priming potentials of the housing and real estate sector.

The JMC, they said, is also expected to strengthen the partnership between the government and private sector in housing and real estate development, particularly on socialized housing for minimum wage earners and informal sellers, which could trigger massive economic activities in the sector and about 80 aligned industries.

JMC No. 2023-003 emphasized “…the existing price ceiling for socialized housing no longer responds adequately to prevailing market conditions, including rising development and construction costs, thereby, discouraging the private sector from building affordable houses for low-income and underprivileged families”.

“…to address the housing needs of approximately 6.5 million Filipino households, a two-pronged approach is necessary, which involves encouraging private sector participation in constructing socialized housing units and fully implementing the Pambansang Pabahay para sa Pilipino Program, led by DHSUD in collaboration with its key shelter agencies and local government units,” it added.