Gradual imposition of zonal Valuation increase proposed

THE PROPOSED increases in zonal valuation for residential areas have to be gradually implement to cushion its impact on housing projects, an industry leader said.

Philippine Institute of Real Estate Services-Davao said.

Dr. Maria Lourdes Monteverde, Philippine Institute of Real Estate Services-Davao  prsident, said on Wednesdays @ Habi at Kape in Abreeza Mall that the increase must be slowly implemented so that the industry could find ways to absorb it.

With the proposed increases on zonal valuation, Monteverde, a certified international property specialist, said the acquisition of cost of the properties will grow, which would prompt developers to impose higher value on housing projects. “This, however, can lead to the creation of a niche market, which are high end consumers because the projects would not be affordable anymore,” she said.

The proposal to increase zonal valuation is being reviewed by the Department of Finance (DOF).

Monteverde said they hoped that their recommendation as an organization for at most 50% increase in zonal valuation will be granted by the DOF. This move has been also backed by the city council.

Councilor Danilo C. Dayanghirang, chair of city council’s committee on finance, ways, means and appropriations, said the increases should only be by 50% higher than the 2002 land valuation rates.

“I hope they (the Bureau of Internal Revenue) will listen to us,” Dayanghirang said, adding that if there are further increases, these must be implemented in staggered basis.

The city council has also asked the revenue agency to conduct further consultations with different stakeholders on what should be the proper valuation for residential areas.

“Developers would have difficulty introducing low cost housing projects to serve the majority of the people of Davao since the proposed high zonal valuation for raw land in areas suitable for low cost housing makes it no longer feasible,” cited the resolution authored by Dayanghirang.

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