Delays in housing permits squeeze home options for OFWs
CEBU CITY, Philippines — Beyond affordability concerns, the residential real estate market in Cebu and other parts of the country is facing a growing bureaucratic challenge that is beginning to affect overseas Filipino workers (OFWs) hoping to buy homes.
Industry leaders raised the alarm as the Department of Human Settlements and Urban Development (DHSUD) has begun auditing a backlog of housing project applications, particularly licenses to sell (LTS), which developers must secure before launching pre-selling projects.
According to realtor Anthony Leuterio, prolonged delays in LTS approvals are already limiting the number of housing projects available in the market.
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“The issue is already alarming because there are fewer projects available for sale,” Leuterio said.
“Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options.”
Housing choices narrowing for OFWs
More than 10,000 housing units nationwide are currently awaiting LTS approval, preventing developers from bringing these projects to market and further constraining housing supply, Leuterio said.
The shortage is particularly evident in the P3 million to P6 million price range, a segment that remains popular among OFWs seeking affordable homes and investment properties.
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With fewer pre-selling developments available, many overseas workers are losing access to lower-priced properties that they typically purchase for future occupancy or long-term financial security.
“Many OFWs want to secure a property early while prices are still lower,” Leuterio said. “What is happening now is that most available units are already near ready-for-occupancy (RFO), which are more expensive.”
The concerns come amid broader challenges facing the property sector, including rising construction costs, inflation, elevated borrowing rates, and increasing regulatory requirements. Despite rising property prices, demand remains concentrated in affordable housing.
“Only about 10 percent of the market prefers bigger units,” he said. “Most buyers want affordable homes and condominiums. Because there are fewer new projects, many OFWs are being deprived of the opportunity to own a house or condominium.”
Impact on real estate workers
The housing supply crunch is also affecting thousands of real estate professionals, including licensed brokers, accredited salespersons, and independent agents who depend on active project inventories.
“Most salespersons work on a project basis. They rely on projects with LTS. If there are no new projects to sell, their livelihood is affected,” Leuterio said.
Likewise, the Accredited Real Estate Salespersons of the Philippines has also expressed concern over the growing shortage of marketable housing projects, he added.
Industry stakeholders also warned that prolonged shortages of legitimate project inventory could drive some sellers toward informal or unauthorized selling activities.
“We want salespersons to remain legitimate and compliant,” Leuterio said.
“The industry needs a balanced housing environment that benefits both OFWs and underprivileged local buyers,” he added.
Faster approvals seen boosting housing supply Leuterio said accelerating LTS approvals could help expand housing supply while supporting the government’s flagship Pambansang Pabahay para sa Pilipino (4PH) program.
“When projects move forward, 4PH can also grow because developers are required to allocate portions of their developments for socialized housing,” he said.
However, he stressed that housing policies and compliance requirements should be developed through broader consultations involving developers, real estate sellers, and government agencies to ensure regulations remain practical and supportive of housing production.
“The housing backlog remains significant,” Leuterio said.
“We need policies that protect buyers while also encouraging developers to build more homes and giving Filipinos more opportunities to own property.”
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