MANILA, Philippines - The Subdivision and Housing Developers Association (SHDA) proclaims that they are confident that the housing sector is leading our country to further economic growth.
Last year, the sector made a significant contribution to the economy with P125 billion or 3.8 percent of the country’s P11 trillion gross domestic product.
According to Ricky Celis, national president of SHDA, this is only the beginning. “Thanks to the government incentives that give value-added tax exemptions to developers that produce socialized housing units, the licenses to sell issued by the Housing and Land Use Regulatory Board for socialized and low-cost housing is up by 17 and 23 percent, respectively,” Celis explains.
Luxury and high-end residential developments have also contributed to the lucrative property market.
But despite the growth, developments are still behind in terms of keeping up with the market’s demands. Currently, the Philippines needs 3.9 million housing units and the demand is growing 3 to 5 percent every year.
“The prevailing environment only allows us to add around 200,000 units every year, which will not be enough since if we do not improve this capacity, the country would end up having a housing backlog of 6.5 million units by 2030,” Celis said.
Finding a solution for this is the main agenda of SHDA’s upcoming 23rd National Developers Convention happening on Sept. 25 to 26 at the Radisson Blu Hotel in Cebu City. Members of SHDA as well as concerned government bodies will be attending to address and collaborate on the various issues and opportunities faced by the current residential property market. Their main goal is to create a roadmap that not only answer to the demand but also to trigger more income opportunities for Filipinos as well as stimulate consistent growth in the real estate industry.