PHL mass housing backlog to hit 4.65-M units in 2016

The Philippines is expected to experience a mass housing backlog of 4.65 million units in 2016, prompting the Subdivision and Housing Developers Association to scramble for a way to address the shelter shortage.   “Before the roadmap process, the industry was aware that a housing backlog exists but the extent was not very clear,” Paul Tanchi, association president, said in a statement Wednesday.   “Now that we have prepared the roadmap, we were able to probe the issues affecting the value chain of our sector and factors that could help it grow,” he added.   The association noted there are serious issues that have an impact on the housing backlog:

• Delays in development permits at LGU level

• Rising costs of utilities

• Brain drain

• Lack of funding for the poor

• Informal settlers

• Rising costs of land.

The association and 10 other industries has turned over their roadmap to the Board of Investments this month.   Tanchi said the strategy to egg on a momentum for mass housing construction includes “making the processing of housing permits and licenses faster.”   Sustaining the shelter industry would also mean making houses affordable through affordable financial plans and developing a comprehensive government-backed program for housing assistance for specific segments of the society, according to the association.   “We recognize the need for stronger collaboration among industry players, key shelter agencies, and the national government to address these gaps,” said Tanchi.   Trade Undersecretary and BOI managing head Adrian Cristobal Jr. said implementing industry roadmaps will need genuine collaboration between government and private sector.   "We are reviving industry policy through the industry development roadmaps project so we can all agree on visions, strategies, and deliberate actions for industries to create meaningful jobs in the country," he said.   This policy shift is the latest trend not only in the Philippine but also in Europe, South Asia, and South America.   According to the mass housing industry roadmap, a P1 increase in investment spending in the industry generates P3.32 in additional output to the economy. Also, a P100-million investment in construction is estimated to generate P47 million in additional household income which corresponds to 228 direct jobs created.   Last January, the Department of Trade and launched the industry roadmap initiative as an approach to policy development.   The vision was to ensure that stakeholders were involved in crafting trade and investment policies and that positions taken in negotiations in the international marketplace support the growth of key Philippine industries.   To ensure the growth aspect encompassed in developing policies, the department noted the value of linking the manufacturing sector to all other sectors of the economy. — VS, GMA News