Overseas Filipino workers hoping to buy property back home are running into a shrinking pool of choices and steeper price tags, a problem industry figures trace to bottlenecks in government licensing that are keeping new residential developments off the market.
Anthony Gerard Leuterio, who leads the A Better Real Estate Philippines (ABREP) Movement, told The Freeman that the slowdown is hitting two groups at once: buyers searching for reasonably priced homes and the large network of agents whose income depends on having projects to sell.
The bottleneck centers on the License to Sell (LTS), the clearance developers need before they can begin pre-selling. “The issue is already alarming because there are fewer projects available for sale,” Leuterio said. “Without LTS approvals, developers cannot launch pre-selling projects, leaving buyers with limited options.”
A pipeline stuck waiting for approval
In Cebu alone, Leuterio estimated that upward of 10,000 units sit in limbo, unable to reach buyers while their licenses remain pending. The founder of Filipino Homes said the pinch is sharpest in the P3 million to P6 million range, the bracket OFWs tend to favor.
That squeeze matters because overseas workers often try to lock in a purchase years ahead, banking on lower entry prices for a future home or as a financial cushion. With pre-selling inventory drying up, what remains tends to be near ready-for-occupancy stock that carries a heavier price. “Many OFWs want to secure a property early while prices are still lower. What is happening now is that most available units are already near ready-for-occupancy (RFO), which are more expensive,” Leuterio said.
He added that appetite for larger homes is limited. “Only about 10 percent of the market prefers bigger units. Most buyers want affordable homes and condos. Because there are fewer new projects, many OFWs are being deprived of the opportunity to own a house or condominium,” he said.
Agents feel the pinch too
Leuterio, recognized as the National Association of Realtors’ 2024 International Realtor of the Year, said the consequences ripple out to brokers, accredited salespersons and independent agents who earn on a per-project basis. “Most salespersons work on a project basis. They rely on projects with LTS. If there are no new projects to sell, their livelihood is affected,” he said, noting the Accredited Real Estate Salespersons of the Philippines has flagged the same worry.
A drawn-out shortage of legitimate inventory, he cautioned, risks pushing some sellers toward informal or unauthorized dealings. “We want salespersons to remain legitimate and compliant. The industry needs a balanced housing environment that benefits both OFWs and underprivileged local buyers,” he said.
Calls for faster, steadier rules
ABREP is pressing government agencies for a more predictable and consultative approach to housing regulation. Leuterio argued that speeding up LTS approvals would expand supply and feed the administration’s Pambansang Pabahay para sa Pilipino (4PH) program. “When projects move forward, 4PH can also grow because developers are required to allocate portions of their developments for socialized housing,” he said.
He pushed for broader consultation among developers, sellers and regulators so that compliance rules stay workable. “The housing backlog remains significant. We need policies that protect buyers while also encouraging developers to build more homes and giving Filipinos more opportunities to own property,” Leuterio said.
These concerns surface against a backdrop of climbing development costs, inflation, steep borrowing rates and tightening regulatory demands on housing projects.
For its part, the Department of Human Settlements and Urban Development pointed to the regional level as the source of the holdup. In a May 14 statement, the agency said an internal audit traced most stalled applications for licenses, certificates and other transactions to its regional offices rather than the central office. Housing Secretary Jose Ramon Aliling said undersecretaries have been dispatched to oversee the department’s 17 regional offices, clear the backlog and gauge performance, a move tied to the agency’s Zero Backlog Program and President Ferdinand Marcos Jr.’s push to improve government service. Aliling said the department is also counting on its digitalization drive to keep processes moving.
