In a move widely cheered by the Subdivision and Housing Developers Association (SHDA) and other industry giants, the government has officially implemented Joint Memorandum Circular (JMC) 2025-001, significantly raising the price ceilings for socialized housing. This long-awaited adjustment marks a pivotal shift in the national housing strategy, acknowledging the economic pressures that have hampered low-cost development in recent years.
The new Implementing Rules and Regulations (IRR), signed by DHSUD Secretary Jose Ramon Aliling and DEPDev Secretary Arsenio Balisacan, are specifically designed to offset the aggressive rising costs of raw land, skilled labor, and essential construction materials like steel and cement.
“Patunay po ang JMC na ang ating gobyerno, sa pamumuno ni Pangulong Marcos Jr., ay nakikinig, sensitibo at kino-consider ang lahat ng sektor sa paglatag at implementasyon ng mga polisiya,” Secretary Aliling sais.
The New Numbers at a Glance
Horizontal (House and Lot): Raised to ₱950,000 (for units 27sqm and above). This increase allows developers to account for the skyrocketing cost of land development and site preparation in peri-urban areas.
Vertical (Condominiums): Raised up to ₱1.8 million (for units 27sqm and above in buildings 6 stories or higher). The higher ceiling for vertical projects reflects the premium costs associated with high-rise structural engineering and modern fire safety systems.
Bigger Minimum Area: Moving away from the “shoebox” models of the past, the JMC effectively sets a new minimum floor area of 24 square meters. This ensures that while the price is accessible, the quality of life and spatial dignity for Filipino homebuyers remain a top priority.
“Ang JMC na ito ay resulta ng bukas, proactive at transparent na dialogo sa pagitan ng DHSUD at private developers. Inaasahan natin na tataas ang production ng socialized housing sa pagpasok ng 2026,” he added.
Why This Matters
For the first time in years, the “wealth creation” aspect of socialized housing is truly viable again. Previously, many developers were forced to stall projects as the cost of building often exceeded the stagnant price caps. By providing this regulatory clarity and restoring healthier margins, the government expects a massive surge in private sector participation for the Expanded 4PH Program.
This policy shift does more than just adjust numbers; it provides a much-needed incentive for innovation in mass-housing technology. With a more realistic price ceiling, contractors can now invest in better building systems such as pre-cast components or the innovative radiation-processed materials recently showcased without fearing a total loss on investment.
The ripple effect on the local supply chain will be significant, as renewed project pipelines lead to increased demand for hardware supplies and construction services nationwide. If you’ve been sitting on the sidelines due to thin margins, now is the time to re-evaluate your 2026 project pipeline and take advantage of a market that is finally aligned with economic realities.
