A new approach to socialized housing

Back in 2022, government launched the Pambansang Pabahay Para sa Pilipinas (4PH) program or the country's national flagship housing project with the goal of having zero informal settlers by 2028.

- MARY ANN LL. REYES

Housing loan borrowers who will avail themselves of units under the 4PH program, through a Pag-IBIG housing loan, are supposed to enjoy lower interest rates than what Pag-IBIG Fund currently provides. The Department of Human Settlements and Urban Development (DHSUD) will subsidize up to five percent of the loan's outstanding interest rate, allowing borrowers to pay an even reduced interest rate on their loans.

The 4PH program aims to build 6.5 million housing units through government-led housing initiatives and address the country's current housing backlog by building one million housing units yearly until 2028. It prioritizes low-income groups and first-time homeowners and requires local government unit nomination.

A report by UN Habitat estimates that housing need in the Philippines will increase from 6.5 million to 22 million units by 2040.

Can government catch up given the rapid population growth?

Nathaniel von Einsiedel, former president of the Chamber of Real Estate Builders' Association (CREBA), has called on the government to rethink its 4PH program.

In a paper submitted to DHSUD, he pointed out that although government has raised the price ceilings for socialized housing units in the hope of enticing more private sector participation in the 4PH program, the fact remains that over 50 percent of the population cannot afford even the lowest price ceiling.

The new price ceilings, he emphasized, made it even more unaffordable to the majority of Filipinos. These new ceilings are: for a four-story socialized condominium building, P933,320 for a 22-square-meter unit; P1.06 million for a 25-sqm unit; and P1.145 million for a 27-sqm unit. The unit prices are higher in taller buildings with the highest being P1.62 million for a 27-sqm unit, but these prices do not include land acquisition cost.