New property valuation law seen to lift real estate market

The recently enacted Real Property Valuation and Assessment Reform Act will revitalize the Philippine property sector by increasing transparency and competitiveness, according to real estate consultancy Santos Knight Frank.

PRVARA introduces several key changes including standardizing appraisal and valuation practices, updating market values nationwide and creating a comprehensive real property information system.

“PRVARA is a crucial step in raising valuation standards and promoting transparency in the Philippine real estate sector,” Rick Santos, SKF chairman and chief executive, said in a briefing. “Global investors value market transparency, and PRVARA will play a vital role in driving increased investment into the country.”

The measures aim to provide greater clarity and efficiency in the real estate market, attracting both domestic and international investors, he said.

The real estate industry is closely watching proposed amendments to the Condominium Act, Santos said. If passed, House Bill 10173 would streamline the process of dissolving struggling condominium corporations and introduce regulations for the maintenance and redevelopment of existing properties.

The proposed changes could address land scarcity issues in Metro Manila, improve urban resilience and ensure the safety and longevity of future developments.

SKF sees both PRVARA and the proposed amendments to the Condominium Act as positive developments for the local real estate sector that may lead to increased investment, improved transparency and better management of existing properties.