The Philippine real estate market is grappling with a lingering distortion, a phantom echo of a boom fueled by a now-vanished industry. Property values, once artificially inflated by the influx of offshore gaming operators, remain stubbornly high, creating an unfair burden for ordinary citizens.
During the previous administration, a surge in demand for both residential and commercial spaces occurred as Philippine Offshore Gaming Operators (POGOs) were actively encouraged. Developers, large and small, responded by dramatically increasing selling and rental prices, fundamentally warping the natural forces of the market.
This wasn’t organic growth, but a direct consequence of government policy. The resulting inflated property values have rippled through the tax system, impacting everything from capital gains tax to real property tax, and even estate taxes for grieving families.
Now, with President Marcos Jr.’s recent ban on all offshore gaming operations, the landscape has fundamentally shifted. Yet, the artificially high zonal values – the basis for property tax calculations – remain in place, forcing citizens to pay taxes based on a market that no longer exists.
The Federation of Philippine Industries is urgently calling for an immediate and transparent review of these zonal valuations, particularly in areas previously saturated with POGOs. The goal is simple: to ensure property taxes are equitable and accurately reflect current market conditions.
The current situation places a disproportionate financial strain on homeowners and investors. Excessive tax obligations discourage new investments, weaken the real estate sector, and erode household finances, hindering economic recovery.
Recalibrating zonal values isn’t merely a technical adjustment; it’s a matter of fairness. It’s about correcting the unintended consequences of past policies and protecting citizens from an outdated and unjust tax system.
Recognizing the changed landscape is paramount. The government has a responsibility to act decisively, adjusting these valuations to reflect the reality on the ground and restore balance to the Philippine real estate market.
