These concerns echoed those raised by property consultancy Colliers Philippines, which described delays in LTS approvals as an emerging headwind for the Philippine property sector.
Anthony Leuterio, national president of a real estate advocacy group, A Better Real Estate Philippines (ABREP), said developers asked senior government officials in a recent meeting to address the slow processing of LTS applications by the Department of Human Settlements and Urban Development (DHSUD) since they could not launch their projects without these.
He pointed out that as of July, only 93 permits had been released by the DHSUD, about 10 percent of the more than 900 released in 2025.
“They need to catch up because there will be an issue on the economic side,” he said.
The LTS is a regulatory requirement that allows developers to legally market and sell subdivision lots and condominium units.
Pressing concern
During a recent forum, Joey Roi Bondoc, head of research at Colliers Philippines, pointed out that the prolonged processing of LTS applications has become one of the industry’s most pressing regulatory challenges because developers cannot legally market residential projects without first securing the permit from DHSUD.
“The LTS issue would be a major concern,” Bondoc said, noting that the delays affect both developers planning new investments and buyers looking for more housing options.
From an economic perspective, slower approvals constrain the pipeline of projects entering the market, limiting housing supply even as demand remains resilient. Tighter inventory could, in turn, put further upward pressure on property prices, which are already being driven higher by rising land values and elevated construction costs.
“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.”
He said the regulatory bottleneck also delays developers’ revenue generation and locks up capital while projects await approval, potentially dampening investment at a time when the government is seeking to address the country’s housing backlog.
Implications
Presenting Colliers Philippines’ inaugural Visayas-Mindanao property market report, Bondoc stressed the need to accelerate residential project launches to ease potential supply constraints, noting that a broader inventory would benefit both developers and homebuyers.
“We need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers,” Bondoc said. “It’s a win-win for the market.”
Bondoc also pointed out that the implications go beyond the residential segment, noting that the availability of quality office developments has become a key driver of investment activity.
“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.”
Timelines disrupted
Leuterio agreed that prolonged delays are disrupting project timelines, discouraging new investments and reducing housing production despite sustained demand.
“There will be big demand, but housing production will be lower,” he said, warning that the slowdown could lead to job losses in construction and related industries, weigh on economic growth, and further widen the country’s housing backlog.
He added that weaker development activity could also reduce government revenues from taxes and permit fees while dampening investor confidence.
Real estate and construction directly and indirectly employ millions of Filipinos, including engineers, architects, contractors, brokers and service workers.
Delayed projects also reduce demand for construction materials, transportation and professional services, weakening the sector’s multiplier effect on the economy, he added. —Ed: Corrie S. Narisma
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