Manila: A public-private sector tie-up is expected to address the housing gap for the low-income segment, and an official of Leechiu Property Consultants is optimistic about this after noting that dialogues towards this goal are now underway.
According to Philippines News Agency, Roy Golez, Leechiu Property Consultants director for research and consultancy, highlighted in his presentation for the fourth quarter 2025 market report that government data shows a housing backlog of approximately 10.65 million units nationwide in 2024. He emphasized the need for collaborative efforts to meet the housing needs of the growing population.
Data from the University of Asia and the Pacific (UA and P) indicate an annual increase in households of around 478,000 from 2018 to 2024, while private housing production averages around 128,000 units per year. This results in an annual shortfall of approximately 350,000 units.
Golez pointed out several measures aimed at addressing the backlog, including the implementation of the expanded Pambansang Pabahay Para sa Pilipino (4PH) program, a reduction in the socialized housing loan rate to 3 percent, and the housing initiatives by the Government Service Insurance System (GSIS). Additionally, the private sector is committed to building over 250,000 socialized housing units over the next three years.
In a briefing, Golez mentioned that discussions between the government and private sector developers are ongoing to tackle the situation. He explained that under Batas Pambansa 220, real estate developers must allocate a portion of their projects for socialized housing, with approximately PHP12-13 billion escrowed for this purpose.
Under Republic Act (RA) 7279, also known as the Urban Development and Housing Act of 1992, as amended by RA 10884, subdivision developers are required to allocate 15 percent of their projects for socialized housing, while condominium project developers must allocate 5 percent.
Golez expressed optimism about the ongoing dialogues, suggesting that they may lead to necessary revisions in the law, ultimately addressing the housing problem. He acknowledged that while closing the gap will not be immediate, the key is that steps are being taken to address the issues.
He further stated, "It has to be government-led for that kind of volume, rather than private sector-led. The private sector can only help so far."
