Thousands of potential homes remain off the market as developers wait for government approval, prompting concerns that regulatory delays could further tighten Cebu’s already competitive housing sector.
Anthony Leuterio, national president of the Accredited Real Estate Salespersons of the Philippines (ABREP), said delays in the issuance of Licenses to Sell (LTS) by the Department of Human Settlements and Urban Development (DHSUD) are slowing housing production, delaying investments, and limiting options for buyers.
The LTS is a regulatory requirement that allows developers to legally market and sell subdivision lots and condominium units. Without the permit, developers cannot launch projects for full sales activities.
Leuterio said the delays have particularly affected pre-selling residential projects, which are commonly preferred by overseas Filipino workers (OFWs) because they allow buyers to secure properties at lower prices before completion.
“The issue is already alarming because there are fewer projects available for sale. Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options,” Leuterio said.
He estimated that more than 10,000 housing units in Cebu remain unavailable to buyers because developers are still waiting for LTS approvals.
The shortage, he said, is most noticeable in the P3 million to P6 million housing segment, a price range commonly sought by OFWs investing in properties for future use or as long-term assets.
Leuterio said the reduced supply of pre-selling units is forcing some buyers to consider ready-for-occupancy properties, which are usually more expensive.
“Many OFWs want to secure a property early while prices are still lower. What is happening now is that most available units are already near ready-for-occupancy, which are more expensive,” he said.
Beyond limiting buyer options, Leuterio said delays in permit approvals are affecting developers, brokers, accredited salespersons, and other workers who rely on a steady pipeline of housing projects.
Photo courtesy of Manila Bulletin
He said developers recently raised the issue with senior government officials, citing the slower release of LTS approvals by DHSUD.
Leuterio said only about 93 licenses had been issued so far this year, compared with more than 800 to 900 permits released in 2025.
“They need to catch up because there will be an issue on the economic side,” he said.
He warned that prolonged delays could reduce housing production, discourage investments, affect construction-related employment, weaken government revenues from taxes and fees, and further contribute to the country’s housing backlog.
“There will be big demand, but housing production will be lower,” Leuterio said.
The concerns were also raised by property consultancy Colliers Philippines, which identified LTS approval delays as an emerging challenge for the Philippine property sector.
Joey Roi Bondoc, head of research at Colliers Philippines, said developers cannot launch residential projects without securing the required permit, restricting the supply of homes despite continued demand.
Bondoc said fewer project launches could limit buyer choices and place additional pressure on property prices as available housing inventory remains constrained.
“You’re restricting the available supply in the market. If you don’t build now, how can you entice potential buyers? The availability of supply is very important,” Bondoc said.
He added that faster approval of LTS applications would help both developers and buyers by expanding housing options and supporting efforts to address the country’s housing shortage.
“We need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers. It’s a win-win for the market,” he said.
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