Real estate developers are urging the government to speed up the issuance of Licenses to Sell (LTS), warning that prolonged permit delays are slowing housing projects, discouraging investments and could weigh on economic growth, including in fast-growing regional markets such as Cebu.
Anthony Leuterio, national president of the Accredited Real Estate Salespersons of the Philippines (ABREP), said developers recently met with senior officials of the Department of Human Settlements and Urban Development (DHSUD) to raise concerns over the slow processing of LTS applications.
Without the permits, developers cannot legally market or sell subdivision lots and condominium units, delaying project launches despite strong demand for housing.
Leuterio said only about 93 Licenses to Sell have been issued nationwide so far this year, a sharp decline from the 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 continued delays could reduce housing production, postpone new investments and eventually lead to job losses across construction and related industries.
“There will be big demand, but housing production will be lower,” Leuterio said.
He added that delayed projects also weaken demand for construction materials, logistics, engineering, architecture and other professional services, limiting the property’s sector multiplier effect on the economy.
The concerns were echoed by property consultancy Colliers Philippines during the presentation of its inaugural Visayas-Mindanao property market report in Cebu.
Joey Roi Bondoc, Colliers Philippines’ head of research, described the delays in LTS approvals as one of the industry’s biggest regulatory challenges, saying developers cannot launch residential projects without first securing the permits from DHSUD.
“The LTS issue would be a major concern,” Bondoc said.
He noted that slower approvals restrict the pipeline of new residential developments entering the market, limiting housing supply even as demand remains resilient.
“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.”
Bondoc said limited housing inventory could place further upward pressure on property prices, which are already rising because of higher land acquisition and construction costs.
He added that delayed project approvals also slow developers’ revenue generation, tie up capital and discourage future investments, undermining efforts to address the country’s housing backlog.
For rapidly expanding regional markets such as Cebu, where demand for residential, office and mixed-use developments continues to grow, Bondoc said faster permit processing is essential to sustaining investment momentum.
“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.”
Beyond housing, Bondoc said the availability of new commercial and office developments also influences investment decisions.
“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.”
Cebu Business News
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