Developers Urge DHSUD to Fast-Track License to Sell Approvals Amid Project Delays

CEBU CITY – Anthony Gerard O. Leuterio, founder of Filipino Homes, noted that some developers have been waiting for months to secure Licenses to Sell (LTS) despite having submitted complete requirements. "No LTS for so many months. Approval is super delayed," he said, expressing growing concern over the slowdown.

Real estate developers have asked DHSUD to expedite the release of LTS permits because prolonged delays in the processing of applications for such permits are causing disruptions in the launch of properties and making housing supply scarce throughout the country.

Centralization creates bottlenecks

According to developers, the shift of approval authority from local government units to the national level has significantly worsened the backlog. Leuterio explained that centralizing LTS approvals at the national level is creating bottlenecks that the DHSUD may not be equipped to handle efficiently. The result has been a cascade of delays in project rollouts across the country.

Launches stalled, developers 'crying'

However, the effect are more obvious in the primary market since the developers depend on the practice of pre-sales to gain momentum. Without the approval from LTS, the developers are not allowed legally to sell pre-selling units, thus stalling their launches originally scheduled to happen within March and April this year. Leuterio cited cases where a single developer is awaiting multiple LTS approvals, calling the situation critical. "Developers are crying now. All are delayed," he said.

Leuterio noted that pre-selling projects, which typically offer five- to six-year payment terms, are the most accessible option for many Filipino buyers, particularly overseas Filipino workers (OFWs) who prefer long-term payment schemes. "Primary sales are very vital in the development of a city. These are projects that offer five- to six-year payment terms, which most buyers prefer so they can afford to own property," he said.

Affordable housing at risk

The delays also affect real estate brokers and agents because much of their work involves selling fresh projects. Reduced activity from brokers is expected due to the launch delays of new projects. The growth sectors that stand to gain significantly from new project launches include Ormoc, Butuan, Cagayan de Oro, Davao City, General Santos, Cebu, Bacolod, Manila, Dumaguete, and Bohol.

Leuterio warned that prolonged delays could limit access to affordable housing, particularly for OFWs who depend on pre-selling projects with extended payment terms. "The Philippines needs new projects. These are affordable and designed for long-term payments, especially for OFWs," he said.

Call for faster action

While DHSUD has clearly defined its timetable for LTS approval after all requirements are met, Leuterio stressed that such approvals depend on the order of case priorities that DHSUD will set. He advised DHSUD to act faster in approving cases, especially those whose developers have already met all requirements. "DHSUD must expedite the approval. Developers are now at the mercy of waiting," he said.