The National Economic and Development Authority (NEDA) and the Department of Human Settlements and Urban Development (DHSUD) have approved new guarantee ceilings for low- and medium-cost housing packages, addressing current economic conditions.
This change, formalized through Joint Memorandum Circular No. 2024-001, comes in response to a request from the Subdivision and Housing Developers Association (SHDA).
SHDA had been advocating for a review of the ceiling limits. NEDA Undersecretary for Policy and Planning, Dr. Rosemarie G. Edillon, noted, “The adjustment was deemed timely and necessary as it accounts for the country’s prevailing economic conditions.”
Based on NEDA’s inflation analysis, the new ceilings are set at PHP 4.9 million for low-cost housing and PHP 6.6 million for medium-cost housing.
“This adjustment is a significant step towards making housing more accessible to Filipino families,” said SHDA Chairman, Ar. Leonardo Dayao Jr.
“We are grateful to NEDA and DHSUD for considering our request and understanding the challenges faced by the housing sector.”
SHDA President Atty. Joy Manaog highlighted the impact, saying, “The revised ceilings will help bridge the gap between rising development costs and the affordability of homes for many Filipinos. This is a positive development for both developers and prospective homeowners.”
The adjustment takes into account rising material costs, labor expenses, and overall inflation trends. The new ceilings aim to provide a more realistic framework for housing developers and make homeownership more attainable for Filipinos.
The circular specifies the following adjustments: Low-Cost Housing ceiling adjusted to PHP 4.9 million and Medium-Cost Housing ceiling adjusted to PHP 6.6 million.
Pursuant to their mandate to set price ceilings every two years, DHSUD and NEDA have established ceilings for various housing levels.
These adjustments reflect significant changes from the previous revisions in 2022 and 2023, which adjusted the economic guarantee ceiling and the price ceiling for socialized housing, respectively.
The new guarantee ceilings are expected to ease the path to homeownership for many, aligning housing costs more closely with economic realities and benefiting prospective homeowners amid challenging economic conditions.
