Housing permit backlog puts PH growth, investments at risk

Housing Permit Backlog Puts Philippine Growth and Investments at Risk

CEBU CITY, Philippines – Delays in the issuance of Licenses to Sell (LTS) are threatening to slow down housing production, discourage investments, and negatively impact the broader Philippine economy, according to real estate industry leaders.

Anthony Leuterio, national president of the Accredited Real Estate Salespersons of the Philippines (ABREP), stated that developers have recently expressed concerns to senior government officials regarding the backlog in LTS applications at the Department of Human Settlements and Urban Development (DHSUD). Leuterio noted that only about 93 LTS permits have been issued so far this year, compared to around 800 to 900 released in 2025.

The LTS permit is a crucial step before residential projects can be launched, as developers cannot legally market or sell condominium units or subdivision lots without one. The slowdown in issuing these permits is disrupting project timelines and could limit housing supply, despite strong demand.

Leuterio warned that the delays could have significant economic implications, including slower construction activity, fewer jobs, weaker demand for building materials and related services, lower government collections from taxes and fees, and diminished investor confidence. The property and construction industries support millions of jobs directly and indirectly, including those of engineers, architects, contractors, brokers, and service workers.

Joey Roi Bondoc, head of research at Colliers Philippines, echoed these concerns, identifying LTS delays as one of the industry’s most pressing regulatory challenges. Bondoc stated that developers are unable to market residential projects until they secure the permit, making prolonged processing a bottleneck for new investments and housing supply.

The delayed approvals mean fewer new projects enter the market, tightening inventory at a time when housing demand remains resilient. This could put upward pressure on property prices, particularly as developers already face higher land and construction costs. Bondoc emphasized the need to accelerate residential project launches and expand inventory, stating that “we need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers.”

The backlog in LTS applications is also tying up developers’ capital and postponing revenue from projects awaiting regulatory clearance, potentially discouraging new investments as the government seeks to address the country’s housing backlog. Bondoc stressed that the broader investment environment depends on the availability of quality commercial space, and that limiting options in the market will ultimately limit investment propensity.

Industry leaders are calling for urgent action to address the LTS backlog and prevent its negative impact on the Philippine economy. As Leuterio noted, “they need to catch up because there will be an issue on the economic side.”

Article and image source: cebudailynews.inquirer.net