Gov’t sees boost in mass housing

DAVAO CITY — The Board of Investments (BoI) expects a surge in application for incentives for mass housing projects this year, a ranking official of the agency told journalists here yesterday.

This, as the agency is reportedly keeping low-cost housing among the projects that will continue to enjoy tax perks under this year’s Investment Priorities Plan.

Lucita P. Reyes, BoI executive director, said the framers of the annual plan recognize the multiplier effect of construction.

Construction projects like housing, she explained, rely on over a dozen downstream industries, from producers of housing materials to housing fund lenders.

“But we have to…be very specific in terms of giving incentives to the housing sector,” she said.

“We need to lower the cost.”

Last year, the BoI processed 144 mass housing projects in the Davao region costing P400,000-P3 million per unit. But bulk of mass housing units sold in the region cost less than P400,000 per unit.

The city government and the regional chapter of the Chamber of Real Estate and Builders Association, Inc. have announced plans to build four- to five-storey buildings for tenement housing, which can be rented out for P1,000 a month, or sold for P250,000 with monthly amortization of P2,500. — JBE, Businessworld