Higher caps on socialized, economic housing planned
Housing developers are batting for an increase in the ceiling of economic and socialized housing to keep up with rising cost of land acquisition and project development, according to Marcelino Mendoza, chairman of the Organization of Socialized Housing Developers of the Philippines (OSHDP).
Mendoza in an interview said the National Housing Task Force is deliberating initially on the threshold of economic housing with the Department of Human Settlements and Urban Development proposing P2.6 million and the National Economic and Development Authority proposing P2.1 million.
The price ceiling of economic housing is P1.7 million for a unit measuring 22 square meters (sq.m.)
Mendoza said housing developers are batting for P3 million but the task force is likely to agree on P2.5 million.
“P3 million… we see that’s the practical (price) because economic housing is a free market.
This is also aligned with the policy of value-added tax exemption on housing units valued at P3.2 million,” he added.
In a joint position paper, OSHDP, National Real Estate Association and Socialized Housing Developers Association are proposing higher price caps and lower floor and lot areas on socialized housing.
The groups are proposing a price ceiling of P800,000 with floor area of 22 sq.m. and lot area of 32 sq.m. for horizontal from P580,000 with floor area of 32 sq.m. and lot area of 40 sq.m.
For vertical housing, the groups propose a P1.5-million cap for a floor area of 22 sq.m. from the current P750,000 on a 24 sq.m. floor area.
The position paper said the cost of construction materials have risen by 4.8 percent as of August 2020 from 2018, when the price caps took effect.
Last year, prices of construction materials rose by another 5 percent from the previous year.
Labor cost in the National Capital Region has also gone up 5 percent, while zonal values of residential areas continue to rise.
“We are constrained. We cannot buy reasonably priced land,” Mendoza said. Irma Isip
Source : https://malaya.com.ph/news_business/higher-caps-on-socialized-economic-housing-planned/?amp&fbclid=IwAR0Cqpom9WcHab0NhohFatlsz1wy0JIBw7B9OshzZwQf2sxMUAXAF0zFp7M
Tags: Real Estate Housing
