In response to a request from the Subdivision and Housing Developers Association (SHDA), the National Economic and Development Authority (NEDA) and the Department of Human Settlements and Urban Development (DHSUD) have announced updated guarantee ceilings for low- and medium-cost housing. This change, formalized through Joint Memorandum Circular No. 2024-001, addresses the need to align housing costs with current economic conditions.
SHDA has been actively advocating for a review of these ceilings. In a recent request to NEDA on July 22, 2024, for approval from the Philippine Guarantee Corporation (PHILGUARANTEE), NEDA Undersecretary for Policy and Planning, Dr. Rosemarie G. Edillon, communicated to SHDA Chairman Ar. Leonardo Dayao Jr. and President Atty. Joy Manaog that the adjustment was necessary given the country’s current economic climate. The new ceilings, based on NEDA’s inflation analysis, are now set at PHP 4.9 million for low-cost housing and PHP 6.6 million for medium-cost housing.
“This adjustment is a crucial step in making housing more accessible to Filipino families,” said SHDA Chairman Ar. Leonardo Dayao Jr. “We appreciate NEDA and DHSUD for their responsiveness to our request and for recognizing the challenges within the housing sector.”
SHDA President Atty. Joy Manaog underscored the significance of the revised ceilings, noting, “This update helps address the gap between rising development costs and home affordability. It’s a positive move for both developers and potential homeowners.”
The Joint Memorandum Circular No. 2024-001 details the updated ceilings: PHP 4.9 million for Low-Cost Housing and PHP 6.6 million for Medium-Cost Housing. These adjustments take into account rising material and labor costs, as well as overall inflation trends. NEDA’s economic analysis determined that these new ceilings provide a more accurate framework for housing development and make home ownership more attainable.
According to their mandate, DHSUD and NEDA review price ceilings for socialized, low-cost, medium-cost, and open housing every two years. The current levels are: Socialized Housing (Level 1-A) – PHP 300,000 and below; Level 1-B – Above PHP 300,000 to PHP 500,000; Level 2 – Above PHP 500,000 to PHP 1.25 million; Level 3 – Above PHP 1.25 million to PHP 3.0 million; Medium Cost – Above PHP 3.0 million to PHP 4.0 million; and Open Market – Above PHP 4.0 million. The ceilings for socialized and economic housing have been adjusted several times since the last revision in 2007, due to the increasing costs of land, materials, and labor. The most recent changes were made in May 2022 and March 2023.
In November 2023, PHILGUARANTEE proposed adjusted ceilings of PHP 4.99 million for low-cost housing and PHP 6.65 million for medium-cost housing based on updated economic data.
The new guarantee ceilings are expected to ease the path to homeownership for many Filipinos, providing a much-needed boost in these challenging economic times.
