The Joint Foreign Chambers stressed the need to put in place a stronger regulatory framework for the valuation of real estate, noting that an appropriate legal paradigm will further boost confidence in the Philippine property sector.
At the same time, having a regulatory framework will also help the local realty sector tap into opportunities created by the Asean economic integration and other economic advances, which require the valuation of real estate to be carried out based on international standards, the JFC said in a letter to Sen. Juan Edgardo Angara, chair of the Senate Committee on Ways and Means.
In the letter, the JFC expressed its support for House Bill 5288 or the Real Property Valuation and Assessment and Reform Act, which was already approved by Congress on third reading, and is currently under consideration by the Senate.
HB 5288 seeks to establish a regulatory framework that will provide a legal basis for valuation of real estate, and similarly adjust valuations over time.
Ensuring a professionally managed system of valuation is essential for stability in the market for both public and private concerns.
The bill provides for valuation standards and adopting market value as the single real property valuation base; supports the profession of appraisal practice; provides for an electronic database for transactions; establishes an adaptive information database on global standards; and ensures transparency in valuation.
It further promotes the fiscal autonomy of local governments to provide basic services to their constituencies by enhancing their capacity to general local revenues from real property.
“Real estate as an asset and investment is best served by the passage of HB 5288. The Philippines is posed for unprecedented growth in the coming years, and the passage of reform laws, such as HB 5228, is an important component in maintaining a vibrant and dynamic economy,” the JFC said.
“The valuation of real estate is vital to commercial endeavors such as real estate financing, listing real estate for sale, investment analysis, property insurance and taxation of real estate. The most fundamental use of real estate valuation is determining the purchase price of a property for the purpose of buying and selling,” it further explained.