By Louella D. Desiderio (The Philippine Star) | Updated May 6, 2015 - 12:00am
MANILA, Philippines - Foreign businessmen in the country are pushing for the passage of a proposed measure seeking to establish a regulatory framework for valuation of real estate, saying such move will create greater confidence in the Philippine real estate industry.
In a letter to Sen. Juan Edgardo Angara, chairman of the Senate Committee on Ways and Means, the Joint Foreign Chambers (JFC) said it supports House Bill 5288 or the Real Property Valuation and Assessment Reform Act which seeks to establish a regulatory framework to serve as legal basis for valuation of real estate.
Under the proposal, the Department of Finance’s Bureau of Local Government Finance through the Real Property Valuation Service (RPVS), will develop as well as maintain valuation standards and ensure compliance to such by local government units.
The RPVS will also provide technical assistance on real property appraisal matters to government agencies and conduct valuation and appraisal of special purpose properties, when requested.
The proposal has been approved by the House of Representatives on third reading and is under consideration by the Senate Committee on Ways and Means.
The JFC supports the proposal as a professionally managed system of valuation is important for stability in the market.
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.
The proposal, the JFC noted, provides a single real property valuation base which will not only support the profession of appraisal practice but also establish an electronic data base for transactions, conform with global standards and ensure transparency in valuation.
“Current developments in the real estate market create a great need for a stronger regulatory framework. Similarly, opportunities created by ASEAN (Association of Southeast Asian Nations) integration and other economic advances require that valuation of real estate is carried out based on international standards. Confidence in Philippine real property system can only be ensured through an appropriate legal paradigm,” the JFC said.
As the Philippines is poised for growth in the coming years, the JFC said the passage of HB 5288 would be an important component in maintaining a vibrant and dynamic economy.