More private sector tie-ups seen cutting housing backlog

LAND-USE PLANNING and governmentbacked rental residences can make housing more affordable for Filipinos and subsequently help address the accommodation backlog, according to an online property marketplace.

Lamudi Philippines, in a report released on Monday, noted that rising real estate prices have hindered efforts to clear the country’s housing backlog estimated at more than 5 million units.

“The dream of having a home of their own is one common aspiration shared by all Filipinos but as the rise of property prices continue to shoot up this goal is becoming more and more elusive most especially to low-income earners,” it said.

Lamudi Philippines urged the government to proactively engage the private sector in planning developments in cities and allocate more areas for low-cost housing projects.

“With the government and the private sector sharing ideas and working together, planning for future developments… that will include more low-cost housing will be much easier,” it noted in the report How To Make Housing More Affordable for Filipinos.

The affordability of housing has suffered from “out-of-control” and “unplanned” urbanization, which pushes the demand for residential land in a particular area, Lamudi Philippines said, citing a study by the Housing and Urban Development Coordinating Council (HUDCC).

“The best course of action for this dilemma can start with more proactive engagement of private investors in the national agenda,” it added.

The government has endorsed just one instance of public and private cooperation in property development so far — the Pabahay sa Riles Project — which according to Lamudi Philippines was “not exactly a success.” —