Manila, June 13, 2024 — In a significant move aimed at enhancing the country’s real estate sector, President Ferdinand “Bongbong” Marcos Jr. signed into law the Real Property Valuation and Assessment Reform Act. The legislation, passed by both houses of Congress earlier this year, seeks to modernize and streamline the valuation and assessment of real properties in the Philippines.
The Real Property Valuation and Assessment Reform Act introduces a standardized and transparent system for property valuation across the country. This reform is expected to address the inconsistencies and inefficiencies that have long plagued the current system, which often resulted in varying property valuations and tax assessments.
Key Provisions of the Act
- Uniform Valuation Standards: The law mandates the adoption of internationally accepted valuation standards to ensure uniformity and fairness in property assessments. This move is expected to create a more predictable and equitable real estate market.
- Creation of a National Valuation Authority: A new independent body, the National Valuation Authority (NVA), will be established to oversee and regulate the valuation process. The NVA will be responsible for setting guidelines, conducting regular audits, and providing training to local assessors.
- Updated Property Database: The act requires the creation of a comprehensive and up-to-date database of all real properties in the country. This database will be used to ensure accurate and timely assessments, improving revenue collection for local governments.
- Appeals and Dispute Resolution Mechanism: A formal mechanism for property owners to appeal valuations and resolve disputes will be implemented. This aims to enhance transparency and provide a fair avenue for addressing grievances.
Impact on Stakeholders
President Marcos emphasized that the new law is a crucial step towards boosting investor confidence and promoting economic growth. “By standardizing property valuations, we are creating a more transparent and predictable market environment, which is essential for attracting both local and foreign investments,” he said during the signing ceremony at Malacañang Palace.
Local government units (LGUs) are expected to benefit from improved revenue collection due to more accurate property assessments. The additional funds are anticipated to support local infrastructure projects and public services, contributing to overall community development.
Real estate developers and investors have welcomed the reform, noting that a standardized valuation system will reduce the risks associated with property investments. “This law will provide the much-needed clarity and consistency in property valuations, making it easier for us to plan and execute projects,” said Maria Lopez, President of the Philippine Association of Real Estate Boards.
Challenges Ahead
Despite the anticipated benefits, the implementation of the Real Property Valuation and Assessment Reform Act is expected to face challenges. The establishment of the National Valuation Authority and the creation of a nationwide property database will require significant resources and coordination among various government agencies.
Moreover, local assessors will need extensive training to adapt to the new standards and procedures. The government has assured that it will provide the necessary support and resources to ensure a smooth transition.
Conclusion
The signing of the Real Property Valuation and Assessment Reform Act marks a historic milestone in the Philippines’ efforts to modernize its real estate sector. As the government moves forward with its implementation, stakeholders remain hopeful that the new law will bring about a more equitable and efficient property valuation system, fostering economic growth and development across the nation.
