Review sought for socialized housing price ceiling  

MANILA, Philippines — Citing the volatile state of the economy, a lawmaker is seeking a review and revision of the socialized housing program’s price ceiling to make it attuned to the prevailing economic condition.

Rep. Ivan Howard Guintu of Pinuno party-list filed House Resolution 608, urging the Department of Human Settlements and Urban Development (DHSUD) as well as the National Economic and Development Authority (NEDA) to update the price ceiling.

Guintu said Republic Act 11201 or the Department of Human Settlements and Urban Development Act mandates the DHSUD and NEDA to determine the price ceilings for socialized, low cost or economic and middle-income housing.

The law provides that the price ceiling may be reviewed or revised any time, but not more than once every two years.

Guintu said that in 2018, the Housing and Urban Development Coordinating Council (HUDCC) adjusted the price ceiling for socialized housing units.

“In the HUDCC resolution, the P450,000 price ceiling was adjusted into a multi-tiered set of socialized housing price ceiling,” Guintu added.

Under the price ceiling law, the price for a 22-square-meter socialized horizontal housing unit was P480,000. A 24-sq.m. property cost P530,000 and  a 28-sq. m. unit, P580,000.

Socialized vertical housing in the National Capital Region cost P700,000 for a 22-sq.m. unit, and P750,000 and P600,000 for  24-sq.m and 22-sq.m. units, respectively.

Vertical housing in the provinces cost P650,000 for every 24-sq.m unit.

“The prevailing economic condition in the country is different from the past, which was considered in determining the adjustments in the price ceiling for socialized housing back in 2018,” Guintu said.

The measure showed that the cost of construction materials has significantly increased over the years.

It also showed the difference in the cost of labor as wage orders increased the minimum salary per region.