Gov’t mulls longer property lease period for foreigners

MANILA, Philippines - The government is considering lengthening long-term lease contracts  and allowing  them  to be traded  in the secondary market as part of efforts to plug the housing backlog in the country.

Finance Secretary Cesar Purisima said the government is considering extending the maximum of lease of land/property to foreigners to 99 years from the existing 75 years.

Aside from making them tradable, the government is also looking at the possibility of allowing the owner of the property  to use the contract as a collateral in accessing funds.

He noted that in other countries, long-term lease contracts can be traded.

Purisima said that by offering longer-term financing, housing will be more affordable to many Filipinos, allowing them to realize their dream of having their own home.

He said these proposals are intended to help solve the growing housing backlog, which currently stands at nearly four million units. The figure is seen to swell  to 6.5 million by 2030 if the problem remains unsolved.

Inaccessibility and inadequacy of government housing finance for lower and mid-income segments, conflicting land policies, too much red tape or bureaucracy were cited as the factors stifling the housing industry’s growth.

The Subdivision and Housing Developers Association Inc. earlier appealed to the government to  continue giving support to the industry through tax perks and incentives.

Based on data  from the Housing and Land Use Regulatory Board, there were a total of  1.88 million housing units established  from 2003 to 2012.