HALFWAY through 2026, delays in securing Licenses to Sell (LTS) continued to weigh on property developers.
Developers said the issue remains unresolved and warned that regulatory bottlenecks are slowing housing production, delaying investments and posing risks to economic growth.
Anthony Leuterio, national president of A Better Real Estate Philippines, said the prolonged processing of LTS applications has become a major concern for developers, with approvals falling sharply this year despite sustained housing demand.
“We have to push this because they are very slow in processing LTS,” Leuterio said. “They need to catch up because there will be an issue on the economic side.”
He said only about 93 LTS had been issued so far this year, significantly lower than the 800 to 900 permits released in 2025.
An LTS, issued by the Department of Human Settlements and Urban Development, is required before developers can legally market and sell house-and-lot and condominium projects.
Leuterio said the slowdown is delaying project launches and could result in lower housing output despite robust demand.
“There will be big demand, but housing production will be lower,” he said.
He warned that prolonged approval delays could lead to fewer construction jobs, slower economic activity, a wider housing backlog and lower government revenues from taxes and permit fees.
The real estate and construction sectors support millions of jobs, including engineers, architects, contractors, brokers and other service providers. Delays in residential projects also reduce demand for construction materials, transportation and professional services, diminishing the sector’s contribution to the broader economy, he added.
The real estate sector grew 6.8 percent year on year in the first quarter of 2026, contributing about P26 billion in additional gross value added.
The concerns were echoed by Colliers Philippines, which said delays in LTS approvals have become one of the industry’s biggest regulatory challenges.
Joey Roi Bondoc, director and head of research at Colliers Philippines, said developers cannot legally market residential projects without first obtaining an LTS, making prolonged processing a significant constraint on new investments.
“The LTS issue would be a major concern,” Bondoc said during the Property Talk: Visayas on the Rise — Property Sustains Upside forum in Mactan, Cebu.
He said the delays affect both developers planning new projects and homebuyers seeking more housing options.
Slower approvals are restricting the pipeline of residential developments entering the market, limiting supply even as housing demand remains resilient, he added.
“If you don’t build now, how can you entice potential buyers? The availability of supply is very important,” Bondoc said.
Limited housing supply could also place further upward pressure on property prices, which are already being driven by higher land values and elevated construction costs, he added.
Bondoc said delayed approvals also postpone developers’ revenue generation and tie up capital while projects await regulatory clearance, discouraging investments at a time when the government is trying to reduce the country’s housing backlog.
“We need to launch more projects and approve more LTS because more options in the market will benefit both developers and buyers,” he said. “It’s a win-win for the market.”
He added that expanding the pipeline of quality residential developments would also help attract more investments into the property sector.
“If you don’t offer more options to the market, buyers and investors will only see what’s currently available,” Bondoc said. “You’re limiting their choices and ultimately limiting their propensity to invest.” / KOC