LISTED real estate firm Cebu Landmasters Inc. (CLI) deferred all new project launches in the first half of 2026 as delays in securing licenses to sell (LTS) held back the release of fresh residential inventory, prompting the property developer to accelerate its rollout in the second half.
In an online briefing on Wednesday, Aug. 12, CLI president and chief executive officer Jose Franco B. Soberano said the timing of LTS approvals significantly affected the company’s ability to launch projects during the period, although demand remained intact and existing inventory continued to sell.
“We had really no new launches in the first half,” Soberano said, noting that the company instead maximized inventory from previously launched projects.
The LTS delays came amid a broader industry slowdown in regulatory approvals. An earlier report said only about 93 LTS had been issued nationwide as of early August, sharply 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 residential projects.
Industry groups have warned that the delays could constrain housing production despite sustained demand. Anthony Leuterio, national president of A Better Real Estate Philippines, said prolonged LTS processing was delaying project launches and could result in fewer construction jobs, slower economic activity and a wider housing backlog.
Colliers Philippines has likewise identified LTS approvals as a major regulatory concern, saying delays restrict the pipeline of residential projects entering the market, postpone developers’ revenue generation and tie up capital while projects await clearance.
Decline in project launches
For CLI, the regulatory bottleneck resulted in an 82 percent decline in project launches in the first half. Residential reservation sales fell to P10.7 billion from P14.3 billion a year earlier as the company had fewer new projects to offer.
Despite the supply constraint, CLI’s portfolio sellout rate improved to 95 percent from 93 percent. Soberano said the company was able to sustain sales through existing inventory and support from its brokerage network.
The LTS delays also affected revenue recognition because the deployment of fresh inventory was temporarily held back. CLI’s real estate revenue declined to P9.7 billion from P10 billion a year earlier, contributing to a slight decline in consolidated revenue to P10.2 billion.
The company, however, sees the slowdown in launches as a timing issue rather than a deterioration in demand.
“The market continues to absorb remaining inventory,” Soberano said, pointing to the portfolio’s 95 percent sellout rate as evidence of continued market absorption. He said the situation underscored the need to release more projects to meet demand.
“We need to launch more projects because there’s the demand, there’s the expertise, and the industry is hungry for it,” he said.
11 projects worth P25B
Amid the LTS issue, CLI is preparing to launch 11 projects worth about P25 billion, covering 5,600 units, over the next six months. Four projects involving nearly 1,000 units were expected to receive their LTS within two to three weeks, Soberano said.
The company expects the delayed inventory deployment to reverse in the second half, with the planned launches spread across Cebu, Davao, Bogo, Danao, Ormoc and Butuan.
Among the projects in the pipeline are the fourth tower of Casamira Beach Town in Mactan, phases 4A and 4B of Casamira South, Alto Ranudo in Cebu City, Mirani Homes in Bogo City, a new Casamira project in Ormoc, Mirani Steps in Butuan, West Village Towers 3 and 5 in Davao Global Township, a housing project in Danao and a residential project in Manresa Town.
“We’re going to come out swinging in the second half,” Soberano said, describing the planned launches as a way to replenish inventory and respond to demand.
He said the company’s experience during the first half demonstrated that demand remained resilient even without fresh launches. The company expects the resumption of launches to support reservation sales growth in the second half.
Soberano said that the new developments would also generate construction activity, employment and broader economic activity in the communities where CLI operates.
CLI ended the first half with a consolidated net income of P2 billion. Its leasing revenues rose 49 percent year-on-year to P162 million, while hotel revenues increased 15 percent year-on-year to P231 million. / KOC