THE government has raised price ceilings for socialized housing to allow better-built homes, while Pag-Ibig Fund said it will keep interest rates low to ensure monthly amortizations remain affordable for Filipino workers.
Under new implementing rules issued by the Department of Human Settlements and Urban Development and the Department of Economy, Planning and Development, higher caps reflect rising land, material and compliance costs that have limited developers’ ability to deliver durable units at scale.
Housing Secretary Jose Ramon Aliling said the recalibration allows developers to improve construction quality without pricing out buyers.
Pag-Ibig chief executive Marilene Acosta said the state housing fund’s strong fiscal position enables it to preserve concessional lending under the Expanded Pambansang Pabahay para sa Pilipino (Expanded 4PH) program, even as unit prices increase.
“We can keep rates low while supporting better-quality homes,” Acosta said.
Under the revised ceilings, socialized house-and-lot units may now sell for up to P844,440 for 24–26 square meters and P950,000 for units of 27 square meters and above. Socialized condominium units can reach P1.8 million for buildings above five floors with units of at least 27 square meters. In Metro Manila and other highly urbanized cities, add-ons of up to P200,000 can lift select condo prices to as much as P2 million.
Qualified borrowers will continue to access a three percent interest rate for the first five years — extendible for another five — translating to monthly payments of about P4,005 for house-and-lot units priced up to P950,000 and roughly P8,432 for condominiums up to P2 million. An “Early Bird” offer extends the subsidized rate to 10 years for the first 30,000 borrowers.
Officials said pairing higher price caps with Pag-Ibig’s low-cost financing is meant to speed up housing delivery, raise build standards and expand homeownership nationwide. / KOC