DELAYS in the issuance of Licenses to Sell (LTS) by the Department of Human Settlements and Urban Development are emerging as a major drag on the Philippine property sector, constraining housing supply, delaying new investments and potentially driving up property prices, according to Colliers Philippines.
Joey Roi Bondoc, director and head of research at Colliers Philippines, said prolonged processing of LTS applications has become one of the industry’s biggest regulatory challenges because developers cannot legally market residential projects without the permit.
“The LTS issue would be a major concern,” Bondoc said, noting that the delays affect both developers planning new projects and homebuyers seeking more housing options.
He said slower approvals restrict the pipeline of residential developments entering the market, limiting inventory even as housing demand remains resilient. With fewer projects being launched, supply constraints could place additional upward pressure on property prices, which are already being driven by higher land acquisition and construction costs.
“You’re restricting the available supply in the market,” Bondoc said. “If you don’t build now, how can you entice potential buyers? The availability of supply is very important.”
The regulatory bottleneck also discourages investment as developers postpone project launches and delay revenue generation while waiting for approvals. Industry stakeholders have warned that lengthy processing periods tie up capital and slow residential development despite the government’s efforts to address the country’s housing backlog.
Speaking during the presentation of Colliers Philippines’ inaugural Visayas and Mindanao property market report last July 1, 2026, Bondoc said expediting LTS approvals is critical to sustaining housing production and expanding consumer choice.
“We need to launch more projects and approve more Licenses to Sell because more options in the market will benefit both developers and buyers,” he said. “It’s a win-win for the market.”
Bondoc said the importance of adequate supply extends beyond the residential sector, citing the office market where the availability of quality developments has become a key factor in attracting investors.
He noted that Iloilo surpassed Cebu in office leasing transactions during the first quarter of 2026, largely because of its available inventory of high-quality office spaces.
“If you don’t offer more options to the market, buyers and investors will only see what’s currently available,” he said. “You’re limiting their choices and ultimately limiting their propensity to invest.”
Beyond faster LTS processing, Bondoc urged policymakers to prioritize the proposed National Land Use Act, saying the measure would provide a clear framework for land classification and development.
He said the proposed law would improve regulatory certainty by clearly identifying areas for residential, industrial and agricultural use, reducing land-use conflicts while giving developers and investors a more predictable environment for long-term planning.
According to Bondoc, quicker regulatory approvals and clearer land-use policies would help unlock investments, accelerate housing production and strengthen one of the country’s biggest contributors to employment, capital spending and economic growth. / KOC