The deferment of the Real Property Valuation and Assessment Reform Act gives the Philippine housing industry a critical window to prepare for a tax reform that could influence property prices, development costs, investment decisions, and government revenues.
The Chamber of Real Estate and Builders’ Associations Inc. welcomed President Ferdinand R. Marcos Jr.’s decision to temporarily defer Republic Act No. 12001, saying the pause should be used to close implementation gaps and ensure the new valuation system is applied fairly, consistently, and transparently.
CREBA supports a unified, market-based approach to property valuation but said implementing agencies and local government units need time to strengthen their technical capacity, finalize implementing guidelines, upgrade data and technology systems, and undertake meaningful consultations with stakeholders.
“RPVARA should modernize the country’s valuation system without undermining housing affordability, economic competitiveness, and property ownership,” CREBA said.
The group urged the government to look beyond the law’s potential impact on real property tax collections and examine its broader economic effects, including on housing production, Capital Gains Tax, Documentary Stamp Tax, transfer taxes, investment, micro, small and medium enterprises, and individual property owners.
The Subdivision and Housing Developers Association also called the deferment “timely and strategic,” saying it would give local governments and developers more time to adjust to the shift toward market-based valuations.
SHDA cautioned that a sharp increase in assessed values could translate into higher property taxes and operating costs, potentially putting additional pressure on the affordability, production, and supply of economic and socialized housing.
The issue goes beyond taxation. For developers, changes in property valuation can alter project costs and returns, while higher taxes may eventually filter through to land prices, rents, and home prices.
For government, meanwhile, a more uniform valuation system could strengthen the property tax base and improve the consistency of assessments across jurisdictions.
The deferment therefore offers an opportunity to calibrate the reform before it takes effect, balancing stronger valuation standards with the need to keep housing within reach and investment conditions competitive.
Both CREBA and SHDA said they remain committed to working with government to ensure RPVARA delivers its reform objectives without placing undue pressure on housing affordability or private investment.
