THE government has approved higher price ceilings for socialized housing units in a bid to revive stalled developments and encourage private builders to expand supply amid rising construction and land costs.
Under Joint Memorandum Circular (JMC) 2025-001, the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev) raised the maximum selling price for socialized house-and-lot units to P844,440 for homes measuring 24–26 square meters and P950,000 for units 27 square meters and above. The revised limits, detailed in the circular, already include land acquisition and development costs.
For socialized condominium projects, ceilings will vary based on building type, with additional allowable cost adjustments in highly urbanized cities depending on zonal land values. The circular allows up to P200,000 in added allowances for sites where land is valued at P40,000 per square meter or higher.
Officials said the adjustment will help developers maintain project viability without compromising affordability for low-income families, addressing concerns that outdated ceilings had made it difficult to roll out new supply. Rising construction and development costs were specifically cited as key drivers for the change.
DHSUD Secretary Jose Ramon Aliling, who signed the memorandum alongside DEPDev Secretary Arsenio Balisacan, said aligning the ceiling with “prevailing market conditions” will enable delivery of higher-quality and larger units while motivating private partners to build more projects.
“Following President Marcos Jr.’s directive for decent and dignified housing, this circular will lead to better, bigger socialized housing units for homebuyers and serve as motivation for private developers to launch more projects,” Aliling said, in a statement.
He added that more project launches will give homebuyers more choices at more competitive prices, supporting the nationwide rollout of the administration’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.
The updated caps will apply only to projects that file new applications for a license to sell after the circular takes effect. The ceilings will remain in force for a minimum of three years.
The revision complies with Republic Act 11201, which requires DHSUD and the economic planning agency to review and revise the maximum selling price for socialized housing periodically—no more than once every two years—to reflect economic conditions.
Private developers must comply with the updated standards and existing regulations under Batas Pambansa 220. Implementing rules for the new ceiling must be released within 30 days of approval. / KOC