The Philippines is facing a housing shortage that was made worse due to the COVID-19 pandemic halting work on numerous developments. Surging demand coupled with increasing prices means home ownership is now an unrealistic goal for some who still require their own place. The government believes rental housing can be a viable solution.
“Rental housing is being considered as an option for those who cannot afford homeownership right away and will form part of the country’s 20-year housing road map,” Angelito Aguila, Officer in Charge Director of the Real Estate Development and Regulation Bureau of the Department of Human Settlements and Urban Developments (DHSUD) explained.
He also told The Philippine Daily Inquirer that the DHSUD was speaking with the Board of Investments about adding rental housing to the Strategic Investment Priorities Plan. If this was done, developers could be offered incentives to build rental units.
Read More: Condo rentals in Metro Manila: search tips to help you find the perfect unit
Another possibility to encourage development would see local governments release land to be used for rental housing projects. Currently, the government is exploring all available options in order to get the ball rolling.
“We hear developers saying there is not enough land. The government has plenty of idle and readily available land. We can utilize these to increase housing production for the informal sectors and even for the private sector or in partnership,” Aguila stated. “If we really have to increase our housing production, we have to make our land accessible and utilizable.”
It is also important for developers to understand the Philippine housing shortage won’t be solved by adding more units for sale. Diversity, such as by launching more rental housing, is the only way the problem can be fully addressed.
“There is a market for rental properties, especially from the working population and even students who live in the province,” SHDA President May Rodriguez proclaimed.
