Price cap for BOI-ok’d houses at P2-M a unit

THE BOARD of Investments (BOI) has put a cap of P2 million on the selling prices of housing projects that will apply for incentives with the agency as part of its new Investment Priorities Plan guidelines.

 The initiative, said Luciya Reyes, BOI governor, will encourage developers to set up projects in rural areas where the cost of land is cheaper  as she referred to these project as economic housing where units are sold between P1.2 million to P2 million.

 The other type of housing projects are the “in-city housing” which are  medium rise buildings and are within the four-kilometer radius from an industrial estate or economic zone.

 “We pegged (the price cap) at that level because the bulk of shortage in housing in that category (rural areas), said Reyes during the agency’s roadshow for the region yesterday at Pinnacle Hotel.

 She added that developers do not have a problem of selling projects at higher prices if these are  located in urban centers, but  there is an scarcity of available land in these areas which have prompted developers to venture into condominium projects.

 “The major contributor at arriving at the selling price of a housing unit is the cost of land,” she said, adding that with that price, a family will have a decent hosue.

 Under the general policies of the 2017 IPP, the selling price of each housing unit shall be more than P450,000 but not exceeding P2 million.

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