Housing permit backlog puts PH growth, investments at risk

CEBU CITY, Philippines — Delays in the issuance of Licenses to Sell (LTS) could slow housing production, discourage investments and weigh on the broader Philippine economy, real estate industry leaders warned.

Anthony Leuterio, national president of the Accredited Real Estate Salespersons of the Philippines (ABREP), said developers recently raised concerns with senior government officials over the backlog in LTS applications at the Department of Human Settlements and Urban Development (DHSUD).

Developers cannot legally market or sell condominium units or subdivision lots without an LTS, making the permit a crucial step before residential projects can be launched.

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But only about 93 LTS permits have been issued so far this year, compared with around 800 to 900 released in 2025, Leuterio said.

“They need to catch up because there will be an issue on the economic side,” he said.

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The slowdown is disrupting project timelines and could limit housing supply even as demand remains strong, Leuterio said.

“There will be big demand, but housing production will be lower,” he said.

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Economic impact

Furthermore, prolonged delays could have ripple effects beyond the property sector, Leuterio pointed out, 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, he said.

The concerns were also echoed by property consultancy Colliers Philippines, which identified LTS delays as one of the industry’s most pressing regulatory challenges.

Joey Roi Bondoc, head of research at Colliers Philippines, said developers are unable to market residential projects until they secure the permit, making prolonged processing a bottleneck for new investments and housing supply.

“The LTS issue would be a major concern,” Bondoc said.

Delayed approvals mean fewer new projects enter the market, tightening inventory at a time when housing demand remains resilient, he said.

Tighter supply

A tighter supply could also put upward pressure on property prices, particularly as developers already face higher land and construction costs.

“You’re restricting the available supply in the market,” Bondoc said. “If you don’t build now, how can you entice potential buyers? The availability of supply is very important.”

Delays also tie up developers’ capital and postpone revenue from projects awaiting regulatory clearance, potentially discouraging new investments as the government seeks to address the country’s housing backlog.

Bondoc made the remarks during the presentation of Colliers Philippines’ first Visayas-Mindanao property market report, where he stressed the need to accelerate residential project launches and expand inventory.

“We need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers,” he said. “It’s a win-win for the market.”

Bondoc said the broader investment environment also depends on the availability of quality commercial space.

“If you don’t offer more options to the market, buyers and investors will only see what’s currently available,” he said. “You’re limiting their choices and ultimately limiting their propensity to invest.”

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