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, in response to a request from the Subdivision and Housing Developers Association (SHDA).
This adjustment, formalized through Joint Memorandum Circular No. 2024-001, addresses the need to align housing costs with current economic conditions.
SHDA has been given approval by NEDA for new guarantee limits. The limits are now set at PHP 4.9 million for low-cost housing and PHP 6.6 million for medium-cost housing. These changes are based on the current economic conditions in the Philippines.
“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.”
The Joint Memorandum Circular No. 2024-001 has specified the following adjustments: The ceiling for Low-Cost Housing has been adjusted to PHP 4.9 million, and the ceiling for Medium-Cost Housing has been adjusted to PHP 6.6 million. These adjustments were made taking into account rising material costs, labor expenses, and overall inflation trends.
According to NEDA’s economic analysis, these new ceilings will provide a more realistic framework for housing developers and make it easier for potential homeowners to purchase properties within their budget.
Under their mandate to jointly determine price ceilings for socialized, low-cost, medium-cost, and open housing every two years, the DHSUD and NEDA have set the ceilings as follows:
- Level 1-A (Socialized) – PHP 300,000 and below
- Level 1-B – Above PHP 300,000 to PHP 500,000
- Level 2 – Above PHP 500,000 to PHP 1.25 million
- Level 3 – Above PHP 1.25 million to PHP 3.0 million
- Medium Cost – Above PHP 3.0 million to PHP 4.0 million
- Open Market – Above PHP 4.0 million
Since 2007, the price ceilings for socialized and economic housing have been revised multiple times due to rising costs of land, development, materials, and labor. The most recent revisions set the economic price ceiling at PHP 2.5 million and adjusted the price ceiling for socialized projects.
The new guarantee ceilings are expected to help many people who want to buy a home. This will make it easier for them to achieve their dream of homeownership despite the tough economic times.
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