Philippine Property Market: ADB Eyes SM Pasay Loan as Developers Push Housing Affordability Fixes

Today's roundup covers a major infrastructure financing move tied to one of Metro Manila's largest reclamation-area developments, plus a push from industry players to make housing more affordable for ordinary buyers.

ADB weighs $500-M loan for SM project

The Asian Development Bank is reportedly considering a $500-million (around P31.7 billion) nonsovereign loan to fund infrastructure for a 360-hectare Pasay City development backed by SM Prime Holdings. The loan would go to SM Smart City Infrastructure and Development Corp. to support roads, bridges, coastal protection, flood control and utility systems, with ADB's board set to take up the proposal on November 25. ADB has flagged the project as carrying significant environmental and social risk, pointing to possible impacts on biodiversity, land use, community health and climate resilience. According to BusinessWorld Online, the review process will weigh these risks against the scale of infrastructure the development requires.

Housing developers push interest subsidy for buyers

Ahead of Creba's 53rd National Convention, the group's national president Noel Toti Cariño argued that housing policy needs to prioritize whether beneficiaries can actually afford and move into completed units, not just how many get built. Creba is proposing an interest subsidy scheme run through Pag-IBIG Fund, where developers would contribute funds to reduce buyers' monthly loan interest. The group also objected to a DHSUD rule requiring escrow of sales proceeds from temporary Licenses to Sell, warning it could trap capital developers need to keep projects moving. According to BusinessMirror, these proposals are meant to tackle financing barriers that keep housing out of reach for many Filipinos.