PHILIPPINE PERSPECTIVE ON HOUSING

-CURRENT HOUSING NEEDS, DEMAND AND SUPPLY

HOUSING

The Philippine housing industry believes that every Filipino family has the right to live with
dignity in the comfort of one’s own home regardless of economic status. It aims to eliminate the
housing backlog by the year 2030.

The Philippine housing sector has enormous potential for growth, as demand for living spaces
continue to increase. Through several industry-led initiatives, the sector hopes to sustain its
robust growth and development – at affordable prices for the Filipino household.

Towards this vision, the industry's objectives are:

1. Increase housing production capacity to sustain 12% annual volume growth

2. Implement a comprehensive government housing subsidy for targeted segments

3. Improve the regulatory environment for housing

4. Generate and mobilize funds for end-user financing

ABOUT HOUSING

The housing backlog is 3.9 million households. Assuming that production of housing units would
average 200,000 units every year from 2012 to 2030, the backlog would still persist and hit 6.5
million households by 2030. The highest demand would come from the economic housing
segment, followed by socialized housing, and lastly by low-cost housing.

The low-cost, socialized, and economic housing units account for a large share of housing
production. From 2010 to 2011, housing production in the high-end, mid-end, and low-cost
categories increased, while production of houses in economic and socialized housing was
relatively flat. From 2000 to 2011, economic, socialized, and low-cost housing cornered close to
70% of total housing production. During this same period, the socialized segment accounted for
27%, the economic segment accounted for 29%, and low cost segment 13%.
As of 2011, there are 3,164 players in the housing industry. Despite the huge number of firms
engaged in housing, only a few firms dominate the industry. Most of these firms are highly
integrated developers that are engaged in various real estate developments besides housing.
Many other firms are into retail real estate, hotels, commercial office buildings, and industrial
estate development.

The Subdivision and Housing Developers’ Association (SHDA) is the largest organization of
housing developers in the Philippines, counting 160 members from its chapters in Luzon,
Visayas, and Mindanao. Other industry participants are members of the Chamber of Real Estate
and Builders’ Associations (CREBA), the Real Estate Brokers Association of the Philippines,
Inc. (REBAP), the Philippine Association of Real Estate Brokers (PAREB), the National Real
Estate Association of the Philippines (NREA), and the the Organization of Socialized Housing
Developers of the Philippines (OSHDP).

FACTS AND FIGURES

Housing demand and supply profile, 2001-2011

Market Segment Housing demand Housing supply Surplus (Deficit)

Socialized Housing 1,143,048 479,765 (663,283)

Economic Housing 2,503,990 541,913 (1,962,077)

Low Cost Housing 704,406 242,246 (462,160)

Mid Cost Housing 72,592 322,995 250,403

High End Housing 18,235 242,246 224,011

Backlog: 3,087,520, excluding 832,046 households that can’t afford

New Housing Need, 2012-2030

Market Segment Price Range Units Needed % of TOTAL Need

Can’t Afford/Needs Subsidy 400K & below 1,449,854 23%

Socialized Housing 400K & below 1,582,497 25%

Economic Housing 400K – 1.25M 2,588,897 42%

Low Cost Housing 1.25M – 3M 605,692 10%

Mid Cost Housing 3M – 6M No need

High End Housing > 6M No need

TOTAL Need 6,226,940

Total New Need Average: 345,941 housing units per year

Estimated Backlog by 2030*

Those who can’t afford 832,046

Backlog, as of 2011 3,087,520

Total Housing Backlog, as of 2011 3,919,566

New Housing Need, 2012-2030 (345,941 units/yr X 18 yrs.) 6,226,540

Housing Production Capacity (200,000 units/yr X 18 yrs.) 3,600,000

Backlog by 2030 6,546,106

*If no special housing program is created.