Housing sector faces herculean challenges
By Rizal Raoul Reyes – October 24, 2017
https://businessmirror.com.ph/
THE country’s housing sector is facing colossal problems that have caused headaches not only to the current but to past administrations, as well. Foremost among the challenges is the estimated backlog of 6.9 million units. Furthermore, industry figures indicated that the demand is far greater than the supply as the number of households is pegged 435,000 per annum as compared to the 233,000 units completed in the same period.
Nonetheless, the dearth in affordable housing needs to be addressed to enable millions of Filipinos especially belonging to the lower strata of society to have a roof above their heads. However, the country does not have a full-time housing body that can take charge of the problem. Thus, industry experts believe a Cabinet-level body needs to be established.
Christopher Narciso, president of the Subdivision Housing Developers Association (SHDA) stressed the importance of having a Cabinet-level organization that can tackle the huge housing challenge. “We have been clamoring and begging for a Department of Housing since the last 10 to 20 years,” Narciso said in a recent briefing held in Makati City.
If a government wants an agency to be effective, Narciso believes that it should have a budget and teeth. As far as the proposed Department of Housing is concerned, he said a Cabinet-level housing body is going to be more effective in implementing housing programs because it has the clout and support.
Architect and urban planner Felino Palafox Jr. wants to raise the bar higher in putting up of the housing body. He pointed out that it should be more comprehensive.
“A Cabinet-level body dealing simultaneously on housing and urban development will be more effective because it will be reducing bureaucratic red tape and corruption. By putting all agencies dealing with housing and urban development in one roof will bring more efficiency and greater coordination,” Palafox said in an interview with the BusinessMirror.
Having done several international projects overseas, Palafox urged the country to implement a world-class housing and urban-development program. “The Philippines must at par with the best of the world like Singapore, Hong Kong, New York, Boston, London, Paris and the Scandinavian cities,” he pointed out.
Palafox said housing and urban-development program must also address the traffic, as well as the housing rental, which has affected employees working in Makati City and the rest of Metro Manila.
The founder of Palafox Architecture and Palafox Associates called for the democratization of housing. He pointed out that government must not allow the construction of low-density housing in central business districts, and discouraged gated communities along major roads.
“Furthermore, local government should be strict when implementing no-build zones in hazard areas, most especially when it comes to informal settlers. During Ondoy in 2009, most communities submerged were situated in hazard zones that were identified as early as 1977,” Palafox said in his book The Philippines: Towards Resilient Cities and Communities.
In an another interview, Felixberto Bustos Jr., president of the National Home Mortgage and Finance Corp., said the right approach in the shelter-development program is to integrate housing and urbanization programs. “You cannot put the house anywhere and you have to do the support programs simultaneously.”
He also agreed that there is an urgent need to put up a Cabinet-level housing body. Although there are several agencies involved in housing development, the Housing and Urban Development Coordinating Council (HUDCC) is only a coordinating body. Unlike if you have a Cabinet-level housing body, there will be a coordinated and simultaneous action on the housing program.
Bustos compares the proposed housing body to an orchestra that should have competent musicians and in a equally important excellent conductor who can lead the group to provide beautiful and harmonious music. At present, the government has the HUDCC, Home Guaranty Corp., the National Housing Authority, Home Development Mutual Fund, Housing, Land Use Regulatory Board and National Home Mortgage Finance Corp. as the agencies dealing with housing concerns.
Bustos remains confident the bill will be passed. “It is long overdue and it is moving.” The former professor at the Asian Institute of Management said future housing leader must be a good manager and leader that will able to see the things needed to be done given the reality of limited resources.
Among the bills filed for the creation of a housing department are the Department of Housing and Urban Development Act authored by Sen. Juan Edgardo M. Angara, Department of Housing and Urban Development Act authored by Sen. Sherwin T. Gatchalian and the Department of Housing and Urban Development Act authored by Jose Ejercito-Estrada.
Another challenge that the housing sector is the planned imposition of value-added tax for housing units valued P2 million and below. Narciso said this will adversely affect the development of affordable housing projects. Meanwhile, Bustos remains optimistic that the issue would be settled by both Houses to have a win-win situation among the stakeholders.
Bustos urged developers to go beyond marketing of residential homes, stressing that the local market is “product oriented when it comes to selling homes.” He noted the developers did not foresee that the market actually needs more socialized housing. “The true test of the product is not the price but the demand of the market,” he said.
