The Subdivision and Housing Developers Association (SHDA), which counts large-scale property companies such as Ayala Land, SM Development Group, Robinson’s Land Corp., DMCI Homes and Phinma Properties among its members, is pointing to strict loan rules from Pag-IBIG Fund as the cause of a decline in housing projects. “The problems with Pag-IBIG have caused a major slowdown in housing production,” said SHDA national president Manuel Crisostomo.
The new regulations, which were imposed after allegations of misdeeds surfaced against property developer Globe Asiatique, is said to be the cause of a 37% drop in monthly loan take-outs from the agency. Globe Asiatique, which is the main figure in what government officials described as a modified Ponzi scam, has been accused of using fake buyers to siphon Php 6.6 billion for its Xevera project in Pampanga.
The SHDA said that thousands of loan applications have been delayed or denied due to the new rules. Crisostomo added that a “perfect storm” caused the large decline; aside from the stringent rules, the computerization of the Land Registration Authority (LRA) also slowed down the process for housing purchases.
Before the new measures were implemented, transactions were formalized in just several days. Now, the process takes up to three months. “This long and extended transaction time adds to the burden of every Filipino family wishing to finally enjoy having their own homes. Instead of being able to move in to their new homes, these individuals have to pay their rent for their current homes, instead of paying the amortization for their new homes,” Crisostomo said.
The group, which claims to have the higher calling of addressing the country’s 3.7 million housing backlog, understands that changes are needed because of the Globe Asiatique situation. However, they object to wholesale disciplinary measures for the industry. “Why are we being punished?” Crisostomo said. “Other developers who were following the rules should not have been penalized.”
The HSDA has reached out to government agencies to push for “rationalized housing policies.” If their concerns are not addressed, Crisostomo warns of “further declines” in the housing market.
