Real estate developers have formally urged regulators to address the growing bottlenecks in project launch requirements—specifically, the lengthy process of obtaining license approvals. Otherwise, industry leaders warn, these delays may adversely affect housing supply across key markets nationwide.
Background of the Issue
Developers across the country have grown increasingly concerned over the slow issuance of the License to Sell (LTS), a mandatory prerequisite before any project can proceed to launch and sell units. Consequently, many planned developments remain in limbo, unable to move forward despite completed preparations.
Furthermore, this call for action comes as the property sector continues to rely heavily on new project launches to meet sustained demand for affordable housing and to support urban growth in major centers nationwide.
Developer Perspectives
“No LTS for so many months. Approval is super delayed,” said Anthony Leuterio, founder of Filipino Homes. He added that some developers have been waiting months for approval, even after completing all documentary requirements.
Under current Philippine regulations, developers must secure an LTS from the Department of Human Settlements and Urban Development (DHSUD) before they can legally offer subdivision lots, condominium units, or other residential properties during the pre-selling stage. Without this permit, developers are barred from advertising and selling units. Moreover, it effectively puts projects on hold, stalling construction and documentation that have already been finalized.
Centralization as a Root Cause
Among the contributing factors behind what Leuterio describes as “worsening delays” is the shifting of the approval process from local offices to the national office. As a result, this centralization has created significant bottlenecks that have slowed down the rollout of new housing projects.
For example, several launches originally scheduled for March and April have been postponed solely due to the absence of LTS approvals, according to Leuterio.
Market-Wide Impact
Furthermore, the delay is expected to weigh heavily on the primary property market, where pre-selling plays a crucial role in funding new developments and expanding overall housing supply.
“Primary sales are very vital in the development of a city,” Leuterio explained. “These are projects that offer five- to six-year payment terms, which most buyers prefer so they can afford to own property.”
Notably, the slowdown is affecting both emerging growth areas and established property hubs. These include Ormoc, Butuan, Cagayan de Oro, Davao City, and General Santos City, as well as Cebu, Bacolod, Manila, Dumaguete, and Bohol—where new projects have yet to be launched.
Consequently, real estate brokers and agents are also reeling from the impact, as many depend on fresh project inventories to sustain their sales activity. “Developers are crying now. All are delayed,” Leuterio added.
Broader Consequences for Homebuyers
Additionally, Leuterio warned that the approval delays could further limit access to affordable housing, particularly for overseas Filipino workers (OFWs). This demographic often prefers pre-selling units precisely because of the longer installment options available.
In conclusion, he emphasized that these projects remain an important pathway to homeownership for Filipinos seeking manageable payment schemes. Without timely LTS approvals, that pathway narrows—potentially locking out thousands of aspiring homeowners nationwide.
