July 30, Manila, Philippines – The new Real Property Valuation and Assessment Reform Act (PRVARA) is expected to raise the competitiveness and encourage greater transparency in the Philippines’ property sector, boosting the country’s appeal to global investors, says Santos Knight Frank.
Signed into law in June, PRVARA will standardize the conduct of appraisal and valuation in the country through the creation of a Philippine Valuation Standards, which pushes the use of prevailing market values. The law also mandates the nationwide update of the Schedule of Market Values (SMVs) which will replace the BIR’s zonal values and local government units’ fair market values.
Another salient feature of the law is the creation of the Real Property Information System, a database of all real property transactions including sale and lease.
Real estate transactions are publicly available data in several developed economies, allowing buyers and lessees to make better property decisions.
Rick Santos, Chairman & CEO of Santos Knight Frank says: “PRVARA is an important step in raising the valuation standards in the Philippines and encouraging transparency in the real estate sector. Global investors look at market transparency when entering emerging markets such as the Philippines, and PRVARA is a vital instrument to drive more investments to the country.”
Condominium Act amendments
The real estate sector is also closely monitoring the progress of the proposed amendments to the Condominium Act.
Approved upon third and final reading in the House of Representatives in May, House Bill 10173 aims to lower the voting threshold required for voluntarily dissolving condominium corporations managing nonviable and aging properties and provides regulations for the maintenance, repair, reconstruction, and redevelopment of condominium projects.
While it is too early to completely assess the initiative’s impact without its final form, Santos Knight Frank believes the proposed amendments carry several benefits, such as addressing challenges from limited land availability in Metro Manila, enhancing urban resilience and sustainability, and prioritizing the safety and integrity of existing and future developments. – END
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