MARKET ANALYSIS FOR HOUSING

MARKET ANALYSIS FOR HOUSING

-a view process in analyzing carefully the situation in socialized housing

developments to further understand the improvements and problems in housing
programs.

Socialized Housing
-Socialized housing shall be the primary strategy in providing shelter for the
underprivileged and homeless.
1. Eligibility Criteria for Socialized Housing Program Beneficiaries.
(a) Must be a Filipino citizen;
(b) Must be an underprivileged and homeless citizen,
(c) Must not own any real property whether in the urban or rural areas.
(d) Must not be a professional squatter or a member of squatting syndicates.
2. Registration of Socializing Housing Beneficiaries.
-identify and register all beneficiaries within their respective localities.
3. Balanced Housing Development.
Framework plan whereby developers of proposed subdivision projects shall be required
to develop an area for socialized housing equivalent to at least twenty percent (20%) of
the total subdivision area or total subdivision project cost, at the option of the developer,
within the same city or municipality, whenever feasible, and in accordance with the
standards set by the Housing and Land Use Regulatory Board and other existing laws.
Concerns:
(a) Development of new settlement
(b) Slum upgrading or renewal of areas for priority development either through zonal
improvement programs or slum improvement and resettlement programs;
(c) Joint-venture projects with either the local government units or any of the housing
agencies
(d) Participation in the community mortgage program
Basic Services
– Socialized housing or resettlement areas shall be provided by the local government
unit or the National housing Authority in cooperation with the private developers and
concerned agencies with the following basic services and facilities.
a. Potable water
b. Power and electricity and an adequate power distribution system;
c. Sewerage facilities and an efficient and adequate power distribution system; and
d. Access to primary roads and transportation facilities.
The provision of other basic services and facilities such as health, education,
communications, security, recreation, relief and welfare shall be planned and shall be
given priority for implementation by the local government unit and concerned agencies
in cooperation with the private sector and the beneficiaries themselves. The local
government unit, in coordination with the concerned national agencies, shall ensure that
these basic services are provided at the most cost-efficient rates, and shall set a
mechanism to coordinate operationally the thrusts, objectives and activities of other
government agencies concerned with providing basic services to housing projects.
Livelihood Component
– To the extent feasible, socialized housing and resettlement projects shall be located
near areas where employment opportunities are accessible. The government agencies
dealing with the development of livelihood programs and grant of livelihood loans shall
give priority to the beneficiaries of the Program.

SITES/LOCATIONS
Under Article IV Sec. 8 of RA 7279
-in coordination with the National Housing Authority, the Housing and Land Use
Regulatory Board, the National Mapping Resource Information Authority, and the Land
Management Bureau, shall identify lands for socialized housing and resettlement areas
for the immediate and future needs of the underprivileged and homeless in the urban
areas, taking into consideration and degree of availability of basic services and facilities,
their accessibility and proximity of jobs sites and other economic opportunities, and the
actual number of registered beneficiaries.
RELATED STRATEGIES
Under Article XI of RA 7279
Sec. 34. Promotion of Indigenous Housing Materials and Technologies. shall
promote the production and use of indigenous, alternative, and low-cost construction
materials and technologies for socialized housing.
Sec. 35. Transport System. —shall device a set of mechanisms including incentives to
the private sector so that a viable transport system shall evolve and develop in the
urban areas. It shall also formulate standards designed to attain these objectives:
(a) Smooth flow of traffic;
(b) Safety and convenience of travel;
(c) Minimum use of land space;
(d) Minimum damage to the physical environment; and
(e) Adequate and efficient transport service to the people and goods at minimum cost.
Sec. 36. Ecological Balance. — The local government units shall coordinate with the
Department of Environment and Natural Resources in taking measures that will plan
and regulate urban activities for the conservation and protection of vital, unique and
sensitive ecosystems, scenic landscapes, cultural sites and other similar resource
areas.
Sec. 37. Population Movements. —to monitor trends in the movements of population
from rural to urban, urban to urban, and urban to rural areas. They shall identify
measures by which such movements can be influenced to achieve balance between
urban capabilities and population, to direct appropriate segments of the population into
areas where they can have access to opportunities to improve their lives.

Sec. 38. Urban-rural Interdependence. — To minimize rural to urban migration and

pursue urban decentralization, the local government units shall coordinate with the
National Economic and Development Authority and other government agencies in the
formulation of national development programs that will stimulate economic growth and
promote socioeconomic development in the countryside.

Action Against Professional Squatters and Squatting Syndicates

The local government units, in cooperation with the Philippine National Police, the
Presidential Commission for the Urban Poor (PCUP), and the PCUP- shall adopt
measures to identify and effectively curtail the nefarious and illegal activities of
professional squatters and squatting syndicates, Any person or group identified as such
shall be summarily evicted and their dwellings or structures demolished, and shall be
disqualified to avail of the benefits of the program.
-professional squatters or members of squatting syndicates shall be imposed the
penalty of six (6) years imprisonment or a fine of not less than Sixty thousand pesos ( P
60,000) but not more than One hundred thousand pesos ( P 100,000), or both, at the
discretion of the court.
Eviction and Demolition. – Eviction or demolition as a practice shall be
discouraged. Eviction or demolition, however, may be allowed under the
following situations:
a. When persons or entities occupy danger areas such as esteros, railroad
tracks, garbage dumps, riverbanks, shorelines, waterways, and other public
places such as sidewalks, roads, parks, and playgrounds
b. When government infrastructure projects with available funding are
about to be implemented.
c. When there is a court order for eviction and demolition. In the execution
of eviction or demolition orders involving underprivileged and homeless
citizens.

Addressing Informality
Applying ECO2 PRINCIPLES

1. Creating information database to aid in planning and policy formulation

2. Initiating the transformation of blighted areas into vibrant communities

3. Resettling communities from disaster‐risk areas and developing cleared areas into
parks and open spaces
HOUSING FINANCE

The comprehensive funds flow system covering the entire housing provision cycle.
a. Identification of financial requirements
b. Fund sourcing for various aspects of housing program (lot acquisition,
development and construction, end buyers financing)

AGENCIES INVOLVED IN HOUSING FINANCE

Home Development
Social Housing
Mutual Fund
Finance Corporation
(PAG-IBIG Fund)

National Home Mortgage

Home Guaranty
Finance Corporation
Corporation
(NHMFC)

National Housing
Authority (NHA)

FUNDING
Funds for the urban development and housing program shall come from the following
sources:
a. A minimum of fifty percent (50%) from the annual net income of the Public Estates
Authority, to be used by the National Housing Authority to carry out its programs of land
acquisition for resettlement purposes.
b. Proceeds from the disposition of ill-gotten wealth, not otherwise previously set aside
for any other purpose, shall be administered by the National Home Finance
Corporation.
c. Loans, grants, bequests and donations, whether from local or foreign Sources.
d. Flotation of bonds, subject to the guidelines to be set by the Monetary Board.
e. Proceeds from the social housing tax and, subject to the concurrence of the local
government units concerned, idle lands tax as provided in Section 236 of the Local
Government Code of 1991 and other existing laws.
f. Proceeds from the sale or disposition of alienable public lands in urban Areas.
g. Domestic and foreign investment or financing through appropriate arrangements like
the build-operate-and-transfer scheme

Republic Act 7835 (08 December 1994). The Comprehensive and Integrated
Shelter Financing Act (CISFA) of 1994.
-Implement the following vital components of the National Shelter Program:
Resettlement Program, Medium Rise Public and Private Housing Program.
-Engage in land banking activities to ensure availability of land to sustain the
Resettlement Program. -Manage and Administer a Trust Fund for the Medium Rise
Public and Private Housing.

The Philippines is now in its 8th year of a house price boom

The Philippines’ residential property market continues to perform very well, due
to robust economic growth. Makati CBD property prices have risen by almost 132%
from 2010 to 2018. Yet prices are not high, and yields are good, and the Philippine
economy is in the 8th year of strong growth.
The average price of a luxury 3-bedroom condominium unit in Makati central business
district (CBD) soared 15.55% (9.91% inflation-adjusted) during 2018 to PHP230,000
(US$4,371) per square metre (sq. m.), from y-o-y rises of 10.46% in 2017, 9.95% in
2016, 13.43% in 2015, 7.11% in 2014, 14.37% in 2013, and 10.06% in 2012, according
to Colliers International. During the latest quarter, condominium prices in Makati CBD
increased 5.02% (5.55% inflation-adjusted) in Q4 2018.
House prices continue to rise in other major Metro Manila CBDs:
 In Rockwell Center, the average price for a 3-bedroom condominium rose by
10.6% (5.2% inflation-adjusted) to PHP244,500 (US$4,650) during 2018
 In Fort Bonifacio, the average price for a 3-bedroom condominium soared by
17% (11.3% inflation-adjusted) to PHP205,500 (US$3,908) per sq. m over the
same period.
However, house price growth is more muted nationwide. During the year to Q3
2018, the nationwide residential real estate price index rose by 4.4% (-2.2% inflation-
adjusted), according to the Bangko Sentral ng Pilipinas (BSP), the country’s central
bank. Quarter-on-quarter, the index dropped 0.6% (-2.8% inflation-adjusted) in Q3
2018. The residential real estate price index, published every quarter, is based on bank
reports on residential real estate loans.
 Condominium units saw y-o-y price increase of 5.8% (-0.8% inflation-adjusted)
in Q3 2018 from a year earlier
 For single detached/attached house, prices rose by a meager 0.2% (-6.1%
inflation-adjusted) during the year to Q3 2018
 Duplex house prices surged 30.7% (22.5% inflation-adjusted) y-o-y in Q3 2018
 Townhouse prices rose by 18.3% (10.9% inflation-adjusted) over the same
period

In the National Capital Region (NCR), residential property prices increased

6.8% (0.1% inflation-adjusted) during the year to Q3 2018 while in Areas
Outside the NCR (AONCR), prices rose by 2.2% (-4.2% inflation-adjusted),
according to the BSP.
Demand remains strong. In 2018, the take-up of pre-sold condominium uits
throughout Metro Manila, including fringe locations, reached 54,000 units –
surpassing the previous record-high of 52,600 units in 2017, according to
Colliers International. This was mainly due to strong demand from starting
families and young professionals and the influx of Mainland Chinese in the
Philippines. Household formation has increased by an average of 3% every year
in the past five years.
REFERENCES:
MARKET IN DEPTH- PHILIPPINES
https://www.globalpropertyguide.com/Asia/Philippines/Price-History

PHILIPPINES - HOUSING FINANCE

http://documents.worldbank.org/curated/en/332101468145149365/Philippines-Housing-
finance

RA 7279
This Act shall be known as the "Urban Development and Housing Act of 1992

AGENCIES INVOLVED IN HOUSING FINANCE

http://www.hudcc.gov.ph/content/attached-agencies