Why the Philippines Needs 282,000 New Homes a Year

If you have ever wondered why homes still feel “kulang” even with so many new projects rising, the answer is simple: the Philippines is not building enough houses every year to keep up with demand. Recent estimates show that the country needs to produce around 282,000 new housing units annually from 2025 to 2030 just to start closing the gap, with an even bigger jump needed after 2030.

The real size of the housing gap

Studies by housing experts estimate that average annual demand for new homes is in the hundreds of thousands, while actual private-sector production is barely a fraction of that, resulting in a large yearly shortfall. This shortfall piles up on top of an already big backlog, which government and international agencies have previously placed in the millions of units.

One analysis breaks it down like this: demand for new homes is roughly 478,000 units per year, while only about 128,000 units are being supplied by the private sector, leaving a shortfall of around 350,000 homes annually. To narrow this gap, experts say the country must ramp up production to at least 282,000 units a year from 2025 to 2030, and then massively scale to about 1.6 million units yearly from 2031 to 2040.

Why 282,000 homes a year?

The figure of 282,000 units is not random; it is a calculated target that factors in existing backlog plus future household formation over the next years. In simple terms, it is the “minimum aggressive level” that slows down the growth of the backlog instead of letting it balloon further.

Government projections in earlier years already showed that if the country stayed at about 200,000 units per year, the backlog could still hit around 6.5 million households by 2030. The new, higher targets—combined with the administration’s “Pambansang Pabahay Para sa Pilipino” program aiming for around 1 million homes per year—are attempts to break out of that low-production trap.

What this means for today’s buyers

For ordinary homebuyers, all these big numbers translate into daily realities you can feel:

• Competition for well-located, reasonably priced homes remains intense, especially in cities and growing provincial hubs.

• Lower- and middle-income families are pushed toward far-flung areas, informal settlements, or cramped rentals due to limited affordable supply.

• Prices for decent housing in safe, accessible locations tend to rise faster than incomes, which keeps “affordable” homes out of reach for many.philstar+1

If the country fails to consistently hit or exceed that 282,000-unit target, the backlog will continue to grow, which can keep pressure on prices and on rental markets. Conversely, if public and private sectors succeed in scaling up, buyers could see more choices in different price brackets and locations over the next decade.

Government programs and private sector role

The national government has put housing front and center, highlighting that hundreds of thousands of housing units have been financed and constructed since mid‑2022 under flagship programs. The “Pambansang Pabahay Para sa Pilipino” initiative aims to deliver millions of units within the current administration to address both the backlog and future needs.

However, experts emphasize that government cannot do it alone; the private sector currently accounts for a large share of formal housing production and must scale up as well. This means developers, banks, and housing finance institutions need to work together to cut red tape, speed up permitting, and make financing more accessible, especially for socialized and economic housing.

How buyers and investors can respond

For home seekers and small investors, the housing gap is both a challenge and an opportunity:

• For end-users, it underscores the importance of planning early, improving creditworthiness, and exploring government-backed financing options like Pag-IBIG to secure a decent home before prices move further up.

• For investors, the persistent shortage suggests continued long-term demand, particularly in affordable housing and in-city or near-city projects close to employment.

If the country succeeds in consistently building 282,000 or more homes a year through 2030, the market could gradually shift from “chronic shortage” to a more balanced environment where more Filipino families can realistically achieve homeownership. Until then, understanding the numbers behind the housing gap can help you make smarter decisions—whether you are buying your first home, upgrading, or investing for the long term.

Source: Ziggurat Real Estate

Can tokens take the agony out of housebuying?

Blockchain could transform financial transactions as money moves at ‘the speed of light’. Tokenisation is now the City of London’s new buzzword

Homebuyers are all too familiar with the agony of completion day. Calls fly back and forth between estate agents and solicitors to see if funds have moved up the chain. Only once the money has landed in everyone’s bank accounts will the sought after keys be released. That pain may soon be a thing of the past under new plans to digitise payments: so-called tokenisation — the new buzzword in financial circles.

If implemented, the technology could revolutionise not just housebuying but payments between buyers and sellers of all stripes. It could even enable consumers to buy assets in fractions — a slice of a gold bar, for example. Trade body TheCityUK reckons London needs to be a leader in tokenisation if it is to maintain its status as a top financial centre. In a recent report with professional services firm PwC, it predicted that tokenised assets would become the “default way in which securities and assets are traded” — and warned there was a risk of regulation falling behind.

At TheCityUK annual dinner last week, chair Omar Ali warned guest speaker Lucy Rigby, the City minister, other countries were “going faster” in the race for digital supremacy, particularly the US, the United Arab Emirates, Hong Kong and Singapore. “This is fantastically important because it’s the future of the industry,” Rigby acknowledged.

So what is tokenisation, and what does it mean for you and I? Some see it as merely the latest iteration of City share trading. Young men once used to run around the Square Mile distributing pieces of paper to show share transactions. In the 1980s, this was replaced with electronic bank transfers.

A building, a real asset, could be represented by 1,000 tokens

Tokenisation tends to use blockchain technology — a type of decentralised digital ledger that is perhaps better known as the basis for cryptocurrency. “A blockchain is a type of database for record-keeping,” said Kara Kennedy at JP Morgan. “Today [in securities markets] record-keeping is maintained on ledgers held by centralised institutions; a blockchain is a decentralised ledger that enables transfers to take place peer-to-peer.”

In effect, this decentralisation removes the need for a main repository like a central bank. But what, then, is a token? “Tokenisation is essentially the representation of an asset or value on the blockchain.

That’s its simplest form,” said Kennedy, who is based in Edinburgh and is global co-head of the American bank’s blockchain business, known as Kinexys. So why does it matter? After all, the Bank for International Settlements, the central bankers’ bank, points out people have been transacting in tokens for centuries, citing the Chinese use of seashells as a form of currency 3,000 years ago.

But this new form of tokenisation is more sophisticated than modern money. For instance, digital tokens are programmable, which means you can set conditions for when money is released. Sasha Mills, the executive director of financial markets infrastructure at the Bank of England, explained the ramifications: “If I’m standing on my doorstep, waiting for my online shopping, the money doesn’t go through until I’ve got the goods in my hand.”

Manish Kohli, head of HSBC’s global payments solutions business, said that, with tokens, money could also “move at the speed of light”. Speaking from New York, he explained that assets could be broken up into tokens to make them more affordable — like the tower he was sitting in. “This building, a real asset, could be represented in 1,000 tokens, say, which can be sold to individuals,” he said. In Hong Kong, HSBC is using the concept to give retail customers access to gold. “Gold is very clunky to own because it’s heavy, it’s difficult to transport,” he said.

With this new technology, customers could own a digital token representing a fraction of that gold. In the financial markets, tokenisation could also enable more efficient borrowing. Kennedy said: “If a company has cash coming in at midday but needs to borrow for two or three hours until it arrives, you can use a blockchain-based intraday loan to borrow for a certain period of time.” That period could be as short as hours or even minutes. Mills at the Bank of England pointed to the use of tokenisation in posting collateral — a sort of guarantee for a transaction.

She believes it could help facilitate growth in the economy, as the same collateral could be put up to support a larger number of transactions. “I can programme my money so I can use my collateral for a few hours in a jurisdiction,” she said. “It’s very efficient, which is obviously beneficial for growth.”

But the City is clearly racked with anxiety that Britain is falling behind in the race to harness digital assets, especially after President Trump published an act last year to set out rules for dollar-denominated stablecoins (a type of cryptocurrency backed by a traditional currency). As the name suggests, their value is supposed to be more stable, unlike cryptocurrencies such as bitcoin, which float freely; last week bitcoin suffered another sharp fall in its value. These are different to the “tokenised deposits” that, for instance, a high street bank would use.

The Bank is consulting on a regime where it would stand behind stablecoins issued in pounds. Mills said: “For stablecoins to operate in the UK, in sterling, they need to meet the standards of money. What we’ve done is to say that if it looks and smells like money, we need to ensure it operates like money; we will be a banker to those stablecoins.”

She was talking about stablecoins for everyday usage, not ones to buy crypto. “From the Bank of England’s perspective, we want all money to be trusted and robust, regardless of whether it’s a digital form of something, a traditional form or a new form.” She took issue with the suggestion the UK was falling behind.

While Trump’s act has been published, the details are still being worked through. Mills said there would be a “live regime” for stablecoin issuance here by the end of the year. The Bank is running a sandbox regime — where market players can test their ideas without risk of punishment when things go wrong — for other digital issues. It has already tested the idea of using tokens to speed up housebuying through tests with the Land Registry.

The financial industry is also running the Great British Tokenised Deposit project, led by UK Finance, and in the summer will begin to test remortgaging, peer-to-peer transactions and digital bond settlement. And the government is working on a digital gilt, known as a “digit”, which Rigby hopes “is going to catalyse the use of some of this technology”.

Announcements on this project are expected in the next week. But the City’s frustration is also generated by the government’s failure to name a “digital markets champion” six months after promising to do so. Those in the industry note that tokenisation has been used within banks but not so much between banks, which will be the next stage of development.

And some, such as Hilary Allen, a professor at the American University Washington College of Law, warn of a “dark side” to tokenisation, which could feed instability in financial markets in times of turmoil. While the the idea of a tokenised remortgage might seem a long way from reality, Peter Left, the head of digital and markets innovation at Lloyds Banking Group, said: “It’s an aspiration … this could become more prevalent within a time frame of 12 months.”

Source: The Sunday Times

The essentials of building a lasting home

Building a house is often imagined as picking tiles, choosing paint colors, and arguing about where the dining table should sit.

A home is a sequence of construction decisions with consequences for comfort, cost, and longevity. The process may seem wrapped in jargon and blueprints to newcomers, but demystifying the fundamentals reveals which parts truly matter and why they carry weight.

The ground beneath

Every house begins with soil. Its condition dictates the type of foundation required, whether shallow footings for stable ground or deep piles for soft or shifting soil. Ignoring this step risks uneven settling and cracks.

A proper geotechnical investigation may seem like an extra cost, but the insurance policy ensures the entire structure rests on a reliable footing.

The architectural plan

Before concrete is poured or steel is tied, architectural design gives order to the build. It aligns the foundation with circulation, light, ventilation, and proportion. Taking time in this exercise avoids costly rework and ensures that technical decisions support strength and livability from the start.

Beyond comfort, a thoughtful plan saves money by preventing wasted space and structural inefficiency.

The structural skeleton

Columns, beams, and slabs are the bones that hold the house upright. Their placement and sizing follow the rules of load distribution.

Reinforced concrete, the staple of Philippine housing, must be mixed, poured, and cured with discipline. Skipping curing time or using low-grade steel can shave costs in the short term but compromise decades of stability. Good skeletons make homes that stand firm even in earthquakes and typhoons.

The roof and its armor

A roof is the frontline defense against heat and rain. Proper roof pitch lets water run off quickly, while trusses engineered with correct spacing resist winds. Layers of insulation beneath can help keep interiors cooler.

Though often overlooked, flashings, gutters, and downspouts determine whether water stays out or sneaks into ceilings and walls. Careful detailing extends the lifespan of roofing systems, reducing costly repairs.

The wet zones

Kitchens and bathrooms concentrate plumbing and drainage. Proper slopes in bathroom floors prevent puddling. Pipes sized correctly for flow reduce clogs, and vent stacks avoid sewer gas from sneaking back inside. Waterproofing membranes beneath tiles stop leaks before they stain ceilings below.

These wet zones are the most expensive to renovate later, so attention here during construction is essential.

The enclosure

Walls, windows, and doors seal the house from the elements. Hollow block walls need correct mortar joints and plastering to resist water penetration. Windows and doors must be plumbed and sealed to prevent leaks and drafts.

Choices here influence both comfort and utility bills. Properly executed enclosures mean less repainting, fewer repairs, and consistently livable interiors.

The finishing touch

Finishes are the most visible layer, but also the thinnest protection. Tiles, paint, and cabinetry all rely on the quality of preparation beneath. No matter how expensive, a floor tile laid on uneven screed will crack. Paint applied to poorly cured plaster will peel.

Workmanship quality in these finishing touches reduces maintenance and extends the life of materials, proving that value is measured by durability as much as by appearance.

The price of building

According to the Philippine Statistics Authority in 2025, the average construction cost for rough residential buildings is around P12,182 per sqm. Industry trackers confirm similar figures.

A mid-range home with comfortable finishes typically costs between P25,000 and P30,000 per sqm. Semi-luxury builds may climb to P35,000 per sqm, while luxury residences can exceed P50,000 per sqm. For a 200 sqm to 300 sqm home, expect P2.4 million at the leanest end, and as high as P15 million for a premium build.

Building with clarity

For those new to building, the lesson is clear: invest in what holds the house together and keeps it dry. Elegance can always be layered later, but strength and integrity must be built from day one.

Source: Inquirer