The new build home sector in the country has suffered from slow sales and liquidity problems, but the government aims to tackle any slowdown with a further $1.5 billion in subsidies – a 25.9 per cent on top of existing funding that was allocated for this year.
Projects in suburban areas over the last decade have seen thousands of homes abandoned, something the government is keen to avoid: as it result, it wants builders to focus on constructing infill developments in urban areas, close to workplaces or schools. Indeed, buyers are increasingly looking for homes in convenient urban locations – and officials are racing to meet demand.
68 per cent of the country’s official land registry is reported to be eligible for the financial support, explained Deputy Finance Minister Fernando Aportela.
5.8 billion pesos had already been offered to housebuilders in 2013, reports Property Wire . Together with the new funding, the total allocation is almost 7.5 billion pesos, a repeat of last year’s level of financial assistance.