CEBU’S housing industry continues to see strong underlying demand, but rising land and construction costs, higher financing expenses and regulatory challenges are making it harder for developers to keep homes affordable, industry officials said.
The Subdivision and Housing Developers Association (SHDA) 7 said the housing backlog remains substantial as Cebu continues to attract workers and families from neighboring provinces and islands.
But developers said the cost of land and project financing has risen sharply, putting pressure on selling prices and making affordable housing increasingly difficult to deliver, particularly in Cebu City, where land values are high.
Another concern is the processing and issuance of Licenses to Sell (LTS), which developers said could further constrain housing supply if approvals take too long.
In a press conference on Friday, Aug. 28, 2026, SHDA 7 past president Harold See said the group respects the role of regulators in reviewing project documents and ensuring compliance. However, delays in issuing LTS could create a supply gap because developers cannot proceed with selling units without the required license.
“If there is something wrong with the documents or the process, we understand where the issue is coming from,” See said. “But by not issuing LTS because you’re trying to vet all these documents, it would also push the housing prices. It will not make housing prices more affordable because it’s creating a vacuum of supply. So, hopefully, there will be more LTS issued so that the developers can also start selling their properties.”
SHDA 7 president Ken Salimbangon said the group is closely coordinating with government agencies on the LTS issue and urged members to submit their applications and petitions and raise concerns with the SHDA board for assistance.
Despite the challenges, developers said demand for housing remains high.
The affordable housing market, however, has recently shown signs of slowing as consumers hold on to their money amid economic uncertainties, rising fuel prices and geopolitical tensions, according to John Paul Escario, vice president for operations for Visayas at Pueblo de Cebu Development Corp.
“That is what is happening right now. The challenge is how do you maintain affordability, enticing the market to buy despite what is happening in our economy,” Escario said. “But the demand is still there.”
Lower-cost financing
Developers said government support could help address the affordability problem, particularly through lower-cost financing.
See said state-owned lenders such as the Development Bank of the Philippines and Land Bank of the Philippines could offer preferential interest rates to housing developers.
Lower financing costs would help reduce project expenses and potentially allow developers to offer homes at more affordable prices.
The industry also sees potential in public-private partnerships, including a model where the government provides or acquires land while private developers build the housing, similar to Singapore’s public housing approach.
Developers also called for more housing development outside Cebu’s major urban centers. Salimbangon said the continued movement of people toward Cebu City has increased demand even as high land prices make affordable housing more difficult to develop.
He said expanding development in the countryside could help families remain closer to their communities while easing pressure on Cebu’s urban centers.
Housing summit
The concerns will form part of discussions at the SHDA 7 Housing Summit on Sept. 11, 2026, at the Radisson Blu Hotel in Cebu City, which will bring together government officials, developers, construction companies, utilities, urban planners and academics.
Themed “Breaking Barriers, Building Forward,” the summit will focus on regulatory reform, development costs and resource security, as well as measures to accelerate housing production while keeping homes affordable.
Ronald Allan Uy, SHDA 7 vice president and event chair, said the industry was no longer simply focused on building more houses but on producing quality and affordable homes at viable costs and within reasonable
development timelines.
Key discussions will cover property valuation and local competitiveness, housing
affordability, power and water security, infrastructure and growth corridors and government-industry cooperation.
The summit will also tackle the implementation of the Real Property Valuation and Assessment Reform Act, which developers said could affect property assessments and real property taxes.
See said developers were concerned that higher assessed property values could raise annual real property taxes and eventually affect other costs such as rents and fees.
The group also plans to discuss infrastructure constraints, including drainage and flooding, as housing development expands.
The association expects about 150 participants at the one-day summit, including company chief executives, chief operating officers and technical executives. / KOC