Private developers on Friday welcomed the new price ceiling for socialized housing jointly issued by the Department of Human Settlements and Urban Development (DHSUD) and the Department of Economy, Planning and Development (DEPDev).

The Subdivision and Housing Developers Association (SHDA) said it supports Joint Memorandum Circular (JMC) 2025-001, which was signed on Dec. 1 by DHSUD Secretary Jose Ramon Aliling and DEPDev Secretary Arsenio Balisacan, along with the issuance of its implementing rules and regulations (IRR).

“The new price ceiling is reflective of the current increases in the price of land, labor, and materials, and will ensure the support for the production of socialized housing for both vertical and horizontal projects,” the SHDA said in a statement.

The JMC is the result of months-long technical discussions among the DHSUD, DEPDev, and private sector groups, including the SHDA, the National Real Estate Association, the Organization of Socialized and Economic Housing Developers of the Philippines, and the Chamber of Real Estate Builders Association. These groups were members of the technical working group tasked with updating the policy.

Aliling said the revised ceiling incorporates proposals raised by private developers and supports efforts to accelerate President Ferdinand R. Marcos Jr.’s Expanded Pambansang Pabahay para sa Pilipino (4PH) Program.

“This JMC is the result of open, proactive, and transparent dialogue between the DHSUD and private developers. We expect an increase in socialized housing production as we enter 2026),” he added.

He also emphasized that the circular was crafted with homebuyer protection in mind, noting that the minimum required floor area for socialized housing units has been increased to 24 square meters.

Under the updated ceiling, the maximum selling price for a socialized house-and-lot package is now set at P950,000, while socialized condominium units may be sold for up to P1.8 million.

The adjustment complies with Republic Act 11201, which mandates the DHSUD and the former National Economic and Development Authority—now reorganized as the DEPDev—to jointly determine, review, and revise the price ceiling as needed, but not more than once every two years, to reflect prevailing economic conditions.