BIR releases new zonal values for Rockwell Center (North Makati)

Effective June 11, 2017, Rockwell buildings in Rockwell Center will have the following zonal values:

13-Jan-1998* 11-Jun-2017**
Amorsolo Square 60,200 180,000
Edades Tower & Garden Villas 60,200 220,000
Joya Lofts & Towers 60,200 200,000
Kirov 60,200 220,000
Luna Gardens 60,200 200,000
One Rockwell East 60,200 180,000
One Rockwell West 60,200 180,000
Rizal Tower 60,200 200,000
Sakura – Proscenium 60,200 220,000
The Manansala 60,200 180,000

*4th Revision of Zonal Values
Zonal Values for these buildings were classified under “All Condominiums, Townhouses (CCT) & Commercial Buildings built after 1995.

**Additional Guidelines on the 5th Revision of Zonal Values
1. All parking slots of condominiums are valued at 70% of Residential or Commercial value whichever is higher.

2. Any unit in a purely residential condominium project found to be used in business shall be classified commercial condominium and 20% of the established value shall be added thereto.

3. Developer/Owner of condominium project built after the effectivity of this revision (5th Revision) shall request for an assignment of values from the technical committee on real property valuation, which is being chaired by the assistant regional director.

Source: https://www.bir.gov.ph/index.php/zonal-values.html

How does this affect Rockwell Center Properties?

Selling prices in Rockwell Center would generally have an upward pressure since sellers would want to keep the amount of proceeds the same as before the increase in zonal value.

Subsequently, I see downward pressure on rental rates in the mid-term as unit owners decide to lease their properties to derive income for units that can’t sell (in turn due to higher prices).

Selling prices of existing properties will have to be revisited since net proceeds to owners may be smaller with the increase in zonal values.

Annual real property taxes would likely increase with the increase in zonal values in the mid- to long-run. Yes, zonal values (determined by the BIR) are independent of the Fair Market Value(determined by the City Assessor and the basis for Real Property Taxes), however, the need to raise revenue collection for infra projects suggest that zonal values and fair market value between the 2 agencies will be synched. It might take time for this to happen since the Local Government Unit needs to conduct a series of public hearings before they could implement such an increase.

Association dues would also see a marginal increase as real property taxes for the common areas increase.

 

Disclaimer: This material, which is strictly for information purposes only. The views and opinions expressed in this article are those of Juan Patag’s and do not necessarily reflect the position of RE/MAX Capital or any other RE/MAX franchise. No liability whatsoever is accepted for any loss that may arise (whether direct or consequential) from any use of the information contained herein. Each RE/MAX franchise is independently owned and operated.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s