DHSUD License‑to‑Sell Delays Are Slowing New Housing Projects

The License to Sell (LTS) is one of the most important documents in Philippine real estate, yet in 2026 it has quietly become a bottleneck for both housing supply and sales. Developers in Cebu and other key markets are now publicly urging the Department of Human Settlements and Urban Development (DHSUD) to fast‑track LTS releases, warning that slow approvals are delaying project launches, cash flow, and the delivery of badly needed housing units. For buyers, especially OFWs and first‑time homeowners, these bureaucratic delays can translate into longer waits, greater uncertainty, and higher risk if they commit to projects that are not yet fully cleared.

What the License to Sell actually does

An LTS is not a mere formality; it’s the government’s way of confirming that a project meets minimum legal, technical, and financial requirements before it can be sold to the public.

In practical terms, a valid LTS means:

• The developer has submitted and secured key permits (development permits, zoning clearances, environmental approvals where required).

• The project’s plans and specifications have been reviewed and accepted by DHSUD.

• The developer is authorized to advertise, accept reservations, and sign contracts to sell for that specific project.

Without an LTS, any “selling” activity is essentially premature, and buyers who enter into deals at that stage are taking on unnecessary regulatory risk.

Why developers are pushing DHSUD to move faster

Recent reports highlight that developers—particularly in Cebu—are raising concerns over the slow release of LTS for new projects. These delays have several knock‑on effects:

• Capital and cash‑flow strain:Developers cannot legally sell units without an LTS, which means they may have land and early works financed but no revenue coming in. This weakens their ability to fund construction and may delay subsequent phases.

• Housing backlog pressure:When LTS approvals drag, projects that could add supply to the market are stuck in the pipeline. For a country with a multi‑million‑unit housing backlog, every month of delay compounds the shortage.

• Higher project risk:Longer pre‑revenue periods raise carrying costs (interest, taxes, overhead), which can in turn pressure developers to increase prices later or cut corners to recover margins.

From the developer’s side, the call is simple: streamline LTS processing so legitimate projects can launch and deliver units on schedule.

Risks for buyers when LTS is delayed

For Filipino buyers and OFWs, LTS delays create both risk and opportunity. The risks are more obvious:

• Regulatory uncertainty:Buying into a project that still has no LTS means you’re betting that all the permits, clearances, and technical requirements will eventually be approved. If DHSUD later finds issues, approvals can be slowed or conditions may change.

• Longer waiting times:Even when marketing has started, a project with pending LTS may see delays in actual construction schedules and turnover dates, affecting families who are timing moves, rentals, or business plans around the new unit.

• Weaker negotiating position:If you’ve paid a reservation fee before LTS is officially out, your leverage to renegotiate or cancel can be weaker, especially with less reputable developers.

Because of this, a “DHSUD‑aware” buyer should always treat the LTS as non‑negotiable due diligence, not an optional document.

How smart buyers should adjust in 2026

Given the current environment, here are practical moves for buyers:

1. Always verify the LTS before committing

• Ask the developer or agent for the exact LTS number and project name.

• Check against DHSUD regional office or official online channels if available.

• Be wary of phrases like “for processing” or “almost approved” without proof.

If the project doesn’t have LTS yet, treat your reservation as high‑risk money and avoid paying large sums up front.

2. Favor developers with strong compliance track records

• Established developers with a history of on‑time LTS issuance and turnover are generally safer.

• For smaller or newer players, demand more documentation and be more conservative with unit choice and payment structure.

Developer risk is now as important as location risk.

3. Negotiate timelines and protective clauses

• For projects with pending LTS, negotiate for:

  • Refundable reservation fees if LTS is not issued within a specific period.

  • Clear clauses around turnover dates and remedies for delays.

• This is particularly important for OFWs who are timing deployment, schooling of kids, or retirement plans around specific turnover years.

Implications for developers and investors

For developers, the current LTS bottleneck is a signal to upgrade internal processes and regulatory strategy:

• Pre‑emptive compliance:Getting all technical and documentary requirements complete and clean before submission can reduce back‑and‑forths with DHSUD and shorten turnaround times.

• Better buyer communication:Transparent updates on LTS status build trust. Silence erodes confidence, especially among more informed buyers and OFWs.

• Staggered project phasing:Structuring project launches to align with realistic LTS timeframes can reduce capital strain and prevent over‑promising on turnover.

For investors (especially those eyeing developer stocks or REITs), LTS delays can be a leading indicator of which developers manage regulatory risk well and which ones may face bottlenecks in launching new inventory.

How this might reshape the 2026–2027 housing landscape

If LTS delays persist without reforms, the effects could include:

• Slower rollout of new subdivisions and mid‑market condos in growth areas like Cebu, Davao, and parts of Luzon.

• Increased pressure on existing inventory, particularly in well‑regulated, popular townships and established projects.

• Greater differentiation between compliance‑strong, capital‑strong developers and smaller, under‑capitalized players.

On the other hand, if DHSUD responds by streamlining internal processes, digitalizing workflows, and clarifying standards, LTS can move from being a bottleneck to a quality filter that boosts confidence in compliant projects.

Source: Ziggurat Real Estate

Human Settlements dep’t issues challenge to build resilient communities

The Human Settlements department has invited the private sector to collaborate with the government in building communities that are resilient in the face of climate change and natural disasters.

Undersecretary Henry L. Yap of the Department of Human Settlements and Urban Development (DHSUD), in a keynote speech at a forum organized by BusinessWorld, said “all stakeholders” need to work to create resilient communities.

“To achieve our goal, we need a united front. The realization of an inclusive, resilient, and sustainable human settlements entails coordination and support from all stakeholders, as well as significant funding and investment,” Mr. Yap said at the BusinessWorld Insights Forum, “Building Sustainable and Inclusive Communities for the Future” in Makati City.

“We are inviting the private sector partners, business people and leaders, development partners, and our local government units to partner with us in building a better Philippines,” he added.

Urban planner and Palafox Architecture Group, Inc. President Felino A. Palafox, Jr. said the Philippines needs to have 100 new “sustainable, resilient, and smarter” cities by 2050 to house a population projected to grow to over 150 million.

“By 2050, it is forecast that the Philippines will be the 16th largest economy in the world. There will be 150 million Filipinos by 2050, of which 70% will be urban population. We need 100 new cities by 2050. Otherwise, our existing cities will be as bad, if not worse, than Metro Manila today,” he said.

“We need strong political will with visionary leadership, urban design, and excellent management,” he added.

Ramon Rivero, Robinsons Land Corp. head of corporate planning, strategy, and sustainability, said that sustainable real estate development is an imperative rather than an option.

“Our cities are expanding at a fast rate and with this growth comes the need for more housing, commercial space, and infrastructure. However, this growth must not come at the expense of our environment,” Mr. Rivero said.

“We have to make sustainability very easy for our people, be it in the form of incentives or form of education. It has to be an easy option. You have to design it in a way that is easy and accessible for them to implement,” he added.

TruNorth Homes Founder and Chief Executive Officer Earl Forlales said that sustainable infrastructure and solutions should be more accessible to promote broader adoption by consumers.

“There is no use for a well-planned sustainable community if people cannot afford to live in it. If we’re able to infuse sustainable features and still make it affordable, that would make a sustainable community,” he said.

“Sustainable infrastructure has to be affordable to the regular consumer. The more that we can make sustainable solutions more affordable, behavioral change will naturally follow on the consumer level without forcing it,” he added.

Yvonne Flores, Gokongwei Group head of sustainability and corporate social responsibility, said inclusive urban planning should be approached systemically.

“It is looking at the overall system and implementing solutions systemically,” she said.

“Resilience is an existential must for all of us. We must make sure that the vulnerable within our communities are included in the solutions we’re looking at. It’s about looking those who are vulnerable and ensuring that because we are part of the community, even the vulnerable are protected and included in the solutions that we are looking at,” she added.

Aboitiz Infracapital Economic Estates Vice-President Jolan Formalejo said that committing to sustainable urban development should be the guiding principle in planning inclusive communities.

“With this comes making sure that inclusivity is integrated. The solution is to decongest these cities by providing new regional areas,” he said.

“Once we start in the regions, we have the full opportunity to make a difference,” he added.

BusinessWorld Executive-Vice President Lucien C. Dy Tioco said sustainable cities and communities remain a challenge for the Philippines.

“In an era marked by rapid urbanization and unprecedented global challenges, the need to make our cities and communities inclusive, sustainable, and resilient has never been more critical,” he said.

“Even the effects of recent Typhoon Carina and the southwest monsoon in Metro Manila and Luzon alarm us once again of how crucial it is to make our communities not just ready for disasters but capable of mitigating their impacts to avoid casualties,” he added.

Source: Business World

Government halves number of low-cost housing units it aims to build by 2028

The Department of Human Settlements and Urban Development (DHSUD) on Monday said that it is cutting by half the number of low-cost housing units it is targeting to build by 2028 because of delays, including in getting financing for housing developments.

“Dati 6 million [units], e hindi matatapos yung 3 million,” DHSUD Secretary Jose Rizalino Acuzar told state television PTV.

(It was 6 million units before, but we cannot finish some 3 million units.)

Among the challenges DHSUD is facing is the long processing times — around 9-12 months — for bank loans to housing developers.

 “Kaya, pero matagal. Siyempre pag pumunta ka sa bangko, hahanapan ka ng documentation,” he said.

(It can be done, but it takes a long time. Of course, if you go to the bank, they will ask you for documentation.)

He said that the delays in funding have meant that only 140,000 units of the 1 million a year that the Marcos Jr. administration originally promised have been built.

The administration is looking at a new scheme where the government would borrow the loans and serve as the developer, Acuzar, a real estate developer before joining government, said.

“Instead na private, si gobyerno na kasi si gobyerno puwede mangutang… government-to-government so medyo madali,” he said.

(Instead of private contractors borrowing from banks, the government will be the one to take out the loans… It will be easier because we can do transactions between government offices.)

In 2022, the DHSUD committed to building 1 million housing units annually to address the Philippines’ 6.5-million backlog in residential spaces.

 In 2023, President Ferdinand Marcos Jr. reiterated that promise, noting that his administration is working to construct 1.2 million housing units by the end of that year.

Source: ABC