Property valuation reform seen to influence housing costs in Central Visayas

Local

CHANGES in how real properties are valued could have a ripple effect on the housing industry in Central Visayas, particularly on developers’ expenses, project planning and the eventual prices of homes, according to the Bureau of Local Government Finance (BLGF) Region 7.

BLGF-7 Regional Director Gerard Avorque said property developers should pay close attention to the implementation of Republic Act 12001, or the Real Property Valuation and Assessment Reform Act (RPVARA), as the new valuation framework could influence the financial calculations behind housing projects.

Speaking at the 2026 SHDA City Housing Summit, Avorque explained that RPVARA is intended to bring greater consistency to property valuation by shifting toward a more uniform, market-oriented system.

A key component of the reform is the adoption of a single schedule of market values that will serve as a common reference for property valuation.

Local assessors will prepare the schedules, which will undergo review by the BLGF before approval by the Department of Finance.

Avorque clarified that a change in a property's market valuation should not be interpreted as an automatic increase in the same proportion in real-property taxes.

The amount ultimately paid by a property owner will also depend on the assessment level and tax rate set by the concerned local government unit.

For developers, however, even changes that do not directly translate into equivalent tax increases could have financial consequences.

Property taxes are among the expenses incurred while land and developments are being held, particularly for projects that take years to complete and sell.

Developers may also have to account for idle-land taxes on qualifying unused properties.

Avorque advised developers to include these potential expenses when evaluating land acquisitions, preparing project studies and determining long-term pricing strategies.

He also encouraged the private sector to become involved in consultations as local governments work on their property valuation schedules.

Developers can provide transaction data and other information that may help government arrive at valuations that better reflect actual conditions in the property market.

The reform also calls for greater use of technology in property assessment. The BLGF has rolled out the Real Property Information System and a computer-aided mass appraisal system to support the collection and analysis of property information.

The move toward digital records means developers will also need to ensure that their property documents are updated and consistent, including titles, tax declarations, surveys and subdivision records.

Meanwhile, Subdivision and Housing Developers Association (SHDA) Central Visayas President Ken Salimbangon said property valuation is only one of several issues affecting the region’s housing sector.

Developers are also dealing with higher construction expenses, financing concerns, regulatory requirements and limitations in basic infrastructure such as roads, water and electricity.

Salimbangon said these challenges are closely connected because delays, additional compliance requirements or higher development costs can eventually affect the affordability of homes.

He called for clearer and more predictable government policies, improved infrastructure and greater cooperation between public agencies and the private sector to help the industry deliver more housing.(MyTVCebu)