CEBU CITY – A top industry stakeholder lamented that home buyers, particularly Overseas Filipino Workers (OFWs), are facing fewer housing choices and higher costs due to delays in the issuance of Licenses to Sell (LTS).

Anthony Gerard Leuterio, president of the A Better Real Estate Philippines (ABREP) Movement, said the delays in LTS issuance is slowing the launch of new residential projects.

Leuterio warned that the lack of new projects entering the market is beginning to affect both buyers and thousands of real estate practitioners who depend on housing inventory for their livelihood.

"The issue is already alarming because there are fewer projects available for sale," Leuterio said. "Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options.”

Leuterio, founder of Filipino Homes, estimated that in Cebu, more than 10,000 housing units are currently awaiting LTS approval, preventing these projects from being offered to the market and further tightening housing supply.

He said supply has become particularly tight in the P3-million to P6-million housing segment, a popular choice among OFWs.

With fewer pre-selling projects entering the market, many overseas workers are losing access to affordable property investments that they typically acquire for future occupancy or long-term financial security.

"Many OFWs want to secure a property early while prices are still lower. What is happening now is that most available units are already near ready-for-occupancy (RFO), which are more expensive," Leuterio said.

He noted that the majority of OFWs and local buyers are not looking for larger housing units despite rising prices.

"Only about 10 percent of the market prefers bigger units. Most buyers want affordable homes and condos. Because there are fewer new projects, many OFWs are being deprived of the opportunity to own a house or condominium," he added.

These concerns came amid broader industry worries over rising development costs, inflation, high borrowing rates, and increasing regulatory requirements affecting housing projects.

Leuterio, who was named 2024 International Realtor of the Year by the National Association of Realtors, said housing supply constraints have consequences beyond buyers, affecting licensed brokers, accredited salespersons, and independent agents nationwide.

"Most salespersons work on a project basis. They rely on projects with LTS. If there are no new projects to sell, their livelihood is affected," he said, adding that the Accredited Real Estate Salespersons of the Philippines has also raised concerns over the worsening shortage of marketable housing projects.

He warned that prolonged shortages in legitimate project inventory could push some sellers into informal or unauthorized selling activities.

"We want salespersons to remain legitimate and compliant. The industry needs a balanced housing environment that benefits both OFWs and underprivileged local buyers," Leuterio said.

ABREP urged government agencies to adopt a more predictable and consultative regulatory approach, particularly on policies affecting housing development and balanced housing compliance.

Leuterio said accelerating LTS approvals would not only increase housing supply but could also support the government's flagship Pambansang Pabahay para sa Pilipino (4PH) program.

"When projects move forward, 4PH can also grow because developers are required to allocate portions of their developments for socialized housing," he said.

However, he stressed that housing policies and compliance requirements should undergo wider consultations involving developers, real estate sellers, and government agencies to ensure that regulations remain practical and supportive of housing production.

"The housing backlog remains significant. We need policies that protect buyers while also encouraging developers to build more homes and giving Filipinos more opportunities to own property," Leuterio said.

The Department of Human Settlements and Urban Development (DHSUD) has found out that delays in processing housing-related applications are occurring at regional offices rather than at its central office, prompting the deployment of senior officials to address backlogs.

Housing Secretary Jose Ramon Aliling said an internal audit showed that most pending applications for licenses, certificates, and other regulatory transactions were stalled on the regional level.

In response, undersecretaries were assigned to oversee the department's 17 regional offices, clear pending applications and assess performance.

The move supports DHSUD's Zero Backlog Program and the directive of President Ferdinand R. Marcos Jr. to improve government services.