THE government is preparing a new housing program modality that will allow private developers to sell existing condominium inventory priced at P3 million and below through Pag-IBIG Fund financing, as it seeks to address the glut in Metro Manila.
According to the Department of Human Settlements and Urban Development (DHSUD), the planned modality under the expanded ‘Pambansang Pabahay para sa Pilipino’ (4PH) program will cover prime-located condominium units and give homebuyers access to lower-priced units.
DHSUD Secretary Jose Ramon P. Aliling said the initiative is intended to help developers dispose of their current inventory while expanding housing options for buyers.
The move comes as developers continue to face elevated condominium inventory in Metro Manila.
Data from consultancy firm Colliers Philippines showed that as of the second quarter of the year units that remained unsold has hit about 80,000, including 32,600 units that were already ready for occupancy.
Developers have consequently been focusing on selling existing units rather than launching new projects. Only 1,200 condominium units were launched in the second quarter, bringing first-half launches to 2,600 units, down 64 percent from a year earlier.
Net take-up also fell 60 percent quarter-on-quarter to 500 units in the second quarter, its lowest level in five quarters.
‘With this new modality through Pag-IBIG Fund, we will enable private developers to sell more units, thus addressing inventory issues, while offering wider options for our homebuyers and access to best-located housing units at a lower price with low interest rates,’ Aliling said.
The housing agency and Pag-IBIG Fund are expected to announce the guidelines for the new modality, which will also allow private developers to use the program to help meet their compliance with the balanced housing requirement.
According to DHSUD, the proposal was discussed during earlier this week’s meeting of the Private Sector Advisory Council (PSAC) Infrastructure Sector Group-Real Estate, which was attended by President Ferdinand R. Marcos Jr. and officials from the government and major property developers.
The meeting included representatives from Aboitiz Group, Ayala Land Inc., Robinsons Land Corp., and SM Prime Holdings Inc.
According to the DHSUD, the new program has drawn interest from major property developers.
‘Top developers expressed their willingness to reduce selling prices so they can avail of the new program, aimed at providing Filipino working class more access to best-located condominium projects at a lower price and further boost the ongoing nationwide rollout of the ‘Expanded 4PH’ [program],’ it added.