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Seized properties suffer up to 50% drop in value

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ONE OF the properties on Mahogany Street, Dasmariñas Village, Makati City, believed to be owned by Janet Lim-Napoles. Photo by Joseph Agcaoili

What happens to ill-gotten real estate properties of suspected criminals after these are seized by the government? To be more specific, what happens to the alleged houses and lots and condominium units of persons of interest like Janet Lim-Napoles, who has been accused of serious illegal detention and of being the mastermind of the P10-billion pork barrel scam?

If you ask property experts, they would say the prospects for these seized properties wouldn’t fare any better than its notorious owner.

Enrique M. Soriano III, Ateneo program director for real estate and senior adviser for Wong+Bernstein Business Advisory, explains: “Governments of developing economies are notorious in managing seized assets. The Philippines is no exception. For some high-profile assets that were seized in the past, especially homes in plush subdivisions and all things considered equal, I estimate a significant 30- to 50-percent drop in real estate values. The new owners will stand to benefit from this transaction. As they fix and flip the asset, margins will be significant. The key really in post forfeitures is asset management.”

Soriano adds: “The government’s definition of asset management is (hiring) a caretaker or a security guard, which is a big mistake. As assets age and are not maintained, they deteriorate.”

Effective asset management

Julius Guevara, Colliers International associate director for advisory services and head of consultancy and research, explains that “in order for the government to recover as much value from these properties, the asset management should be effective. Seized properties should continue to be maintained, otherwise the physical condition will deteriorate and the government will not actually benefit from the confiscated properties as much as it could have.”

Soriano defines asset management as “a systematic process which allows for the maintenance, upgrading and operation of our physical assets in a cost-effective manner. It’s both strategic and proactive, and offers a long-term and comprehensive view of infrastructure performance and cost.”

Guevara points out, however, that “there is no scientific data on the effect of sequestration on the values of properties.

“But as we saw over the past decades, the properties that were put under government control have deteriorated. Since these properties would be put under litigation which, unfortunately, takes years in the Philippines, there is no choice but to put the properties under lock and key and keep them unutilized until the cases are resolved. In short, if a property’s utility becomes limited or hindered for whatever reason, may it be natural, physical or legal, then its value would also be constrained,” he adds.

Guevara says: “In this case, since the (Napoles) properties may possibly be seized but the cases have not yet been resolved, they cannot be leased out or encumbered; no economic value can be derived at that point. However, once the cases are resolved one way or the other and true ownership is established, then the market value of the properties will again prevail.

“(In the present situation), the market value of the properties will be constrained even though they haven’t been confiscated. Buyers will not pay market value for properties they think have a possibility of being seized by the government in the future, unless the cases have been cleared and the property ownership is truly established,” Guevara adds.

Legal procedure

Soriano says that the forfeiture sanction is a legal procedure resulting in the transfer of the ownership of property to the government.

Soriano adds: “As to whether the property values of these alleged Napoles properties will rise or plummet after the government seizes them lies on three crucial elements:

• The primacy of the site where the assets are located;

•.Timing of the sale will depend on market conditions;

• The current and future state of the asset, whether they be condominium or houses.”


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Tags: Business , property , Real Estate , Seized properties

  • http://www.braintecs.com wishfull thinking

    Mataas pa rin ang market value nyan mga properties…pinapababa lang ang pag-assess para mabili ng mga opisyal din ng gobyerno pan-sarili nila! ehehe!

  • Guest

    bilhin ko na lang, gawin ko piggery

  • disqus_EWrSdjV1nv

    take over nyo na rin ari-arian ng enrile at revilla.
    by force! total ninakaw lanbg naman ang mag yan eh.

    • marinero

      wala na sir! inilipat sa iba ang ari-arian ng mga ito, enrile, jinggoy, revilla etc. ibig sabihin bankrupt na at maghabol kayo sa tambol mayor.

  • Ragna_rok

    The government seize it from the corrupt individuals only to sell it as bargain through false bidding to another corrupt individual and some the proceeds goes to the pocket of the corrupt official.

    Then the good officials will discover it, seize the properties of those who are illegally benefitting for the sale and the corrupt cycle goes on.

  • oh_noh

    putik talaga itong mga negosyanteng switik!

    di pa nga nase-sequester, 30 to 50% na kagad ang planong huhuthutin sa taong bayan!

    wag ibenta hanggat di napepresyuhan ng tama! pwedeng i-market ng positive ang pagiging NATIONAL SWINDLER ni napoles.

    DYESEBEL – tat@nga-t@nga ka na naman, nasarahan ka na naman tuloy ng internet shop :-p

    • Prouder than ever 2B Filipino

      sama ako sa pagmumura!

    • gilalas

      Basahin mo ng maigi, ang devaulation nangyayari dahil ung mga kaso tumatagal ng ilang taon. Hindi pwedeng ibenta yan o iparenta habang nasa korte pa.

      Pag naresolba na yung kaso, saka lang pwedeng maibenta talaga, e kung hindi naman maintained ung property at nagdeteriorate na, syempre bumababa din market value.

      Gets mo na ba?

      • oh_noh

        Alam mo ba ibig sabihin ng PRIME property? Pag nalaman mo ibig sabihin nyan, siguro ma ge-gets mo, intiendes?

      • oh_noh likes bukkake

        oh_noh Suck my balls english yan
        Suck my balls para maalis ang kalyo sa mga labi mo hihihi
        sabihin mo pala sa nanay na na huwag mag twerking habang tinitira ko siya sa wet pooh huhuhu
        Mahirap tanggalin ang mga kalyo sa labi mo dahil sa ka choo choo p@.
        Wala ka ng pambayad sa internet wala ka pang pampagamot huhu

      • oh_noh

        . |
        o|o

      • oh_noh likes bukkake

        Ang ibig sabihin ng prime property ay suck my balls hihi

        4 days kang nawala Ganyan talaga kung galing sa nakaw ang pambayad sa
        internet hihi at ang nagbabayad ay yung boypren na kapalit ay choo pa
        haha
        Suck my balls english yan hihi ku pal ang ipahid mo para matanggal ang mga kalyo sa labi mo oh_noh dahil sa ka choo choo pa hahaha

    • oh_noh likes bukkake

      oh_noh Suck my balls english yan
      sabihin mo sa nanay na na huwag mag twerking habang tinitira ko siya sa wet pooh huhuhu
      Mahirap tanggalin ang mga kalyo sa labi mo dahil sa ka choo choo p@.
      Wala ka ng pambayad sa internet wala ka pang pampagamot huhu

  • baboi

    Maganda! Magandang babasahin pero sapalagay nyo sino makaka intindi sa mga pinagngangangawa nyo? wala! tayo-tayo kayo-kayo lang, dapat ipaabot sa nakakaraming botante para maging mas matalino, magsulat sa wikang Pilipino!!!
    Ang susi sa mas matalinong botante sa mga susunod na eleksyon ay ang pagbubukas ng isip at kamulatan sa mas nakakaraming mambabasa sa pamamagitan ng panunulat sa wikang pilipino. Mas nakakarami sa mga matatalinong panunulat ay nasa wikang Ingles samantalang ang mas tinatangkilik na babasahin ng mas nakakaraming masang pilipino ay mga tabloid nasa tagalog na puro krimen at showbiz lang ang mga nilalaman. Sana gumising na din ang mga matatalinong journalist ng bansa, MAGSULAT NA SA WIKANG PILIPINO!!!

  • eight_log

    These properties are at prime locations … they must not be sold at a discount!!!! Our govt has that practice of almost giving away public properties … THIS IS ANOTHER FORM OF CORRUPTION!!!!!

    • oh_noh

      Exactly!

      DYESEBEL – anyare? la nang pang rent sa inet shop? :-P

      • oh_noh likes bukkake

        pooh tang na ka oh_noh sabi sa akin ng kapit bahay mo na nandirito ay ilang araw kang walang internet connection samantalang humihingi ka ng pera sa boypren mo na kapalit ay choo pa pagkatapos kang tirahin sa wet pooh haha bwa ka nang in@ ka

  • @Palo Alto

    Government should not profit from seized properties. They should release the property for bidding immediately specially in the case of Napoles.

    Gov is not an asset management consultant and needs to recover the money quickly whether is sold below value or not. There is no such thing as appreciation on seizures, they all depreciate exponentially. The key is immediate release of the asset, or they will just rot and in this country of termites, remember they are not sleeping to find their next meal, you know.



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