Property values face reset

CEBU, Philippines — How much is Cebu’s property really worth? Property owners across Cebu may soon see changes in how their real estate is valued, as the provincial government rolls out a proposed 2027 Schedule of Market Values (SMV) that could shape real property taxes starting 2028.

The proposed SMV, prepared by the Cebu Provincial Assessor’s Office in coordination with 44 municipal assessors, aims to establish a uniform and transparent basis for valuing land, buildings, and other improvements across the province.

Cebu Provincial Assessor Michelle Languido said the updated valuation is the result of an extensive study to ensure that property values are “fair and reasonable.”

“An accurate and extensive study of the valuation resulted to fair and reasonable values,” said Languido, as she emphasized that the move is meant to improve transparency in how properties are assessed, which directly affects how real property taxes are computed.

Under the proposal, land values will vary depending on location and classification, with highly urbanized or rapidly developing areas posting the highest base values.

Municipalities such as Consolacion, Liloan, Minglanilla, and Cordova are among those expected to register the highest rates.

In contrast, more rural areas like Bantayan, Badian, and Daanbantayan are expected to have lower base market values.

Under the proposed schedule, residential lands are categorized from R1 to R6, with R1 representing prime residential areas and R6 covering less developed zones.

Subdivision properties are also classified separately, ranging from high-end (RS1) to economic housing (RS4).

In some areas, prime residential land values may reach up to ?8,500 per square meter, while high-end subdivisions may go as high as ?11,800 per square meter.

Meanwhile, lower-tier residential areas in rural municipalities may have base values as low as ?300 to ?500 per square meter.

Under the proposal, northern and Metro Cebu-adjacent towns such as Consolacion, Liloan, Minglanilla, and Cordova posted the highest base values, with prime residential areas (R1) reaching up to ?8,500 per square meter.

In contrast, municipalities such as Dalaguete, Argao, and Balamban registered moderate values, reflecting their mix of developing commercial zones and agricultural land.

In these areas, R1 classifications range significantly lower, indicating a more gradual pace of land appreciation compared to highly urbanized towns.

Meanwhile, more remote and rural local government units (LGUs) such as Bantayan, Daanbantayan, Badian, and Alcantara recorded the lowest proposed base values, with some residential classifications dropping to as low as ?300 to ?500 per square meter.

The proposed schedule also introduces separate valuation tiers for residential subdivisions, categorized from RS1 to RS4.

High-end subdivisions under RS1 may reach up to ?11,800 per square meter, particularly in growth areas like Consolacion and Liloan, while economic housing classifications (RS4) are valued at around ?4,000 per square meter.

Beyond residential land, the schedule outlines updated values for commercial and industrial properties, with commercial zones (C1) in top municipalities reaching up to ?15,800 per square meter.

Industrial land classifications also show strong valuation, with top-tier categories (I1) proposed at as much as ?25,100 per square meter, signaling continued industrial expansion in key areas.

Moreover, there are also classifications for agricultural property valuation.

With this, the provincial government has scheduled public hearings to gather feedback from stakeholders before finalizing the proposed SMV.

Hearings will be held on April 6 in Cordova and April 7 in San Fernando, both starting at 1 p.m. Languido said the consultations are crucial, as inputs from the public will be incorporated into the final report.

“Once approved it will be forwarded back to us. We will then submit it to the SP for them to decide what assessment level to be used,” the provincial assessor shared.

The revised proposal will then be submitted to the Bureau of Local Government Finance (BLGF) Central Visayas for review.

Once cleared at the regional level, it will be elevated to the BLGF central office and eventually to the Department of Finance for approval.

After approval, the document will be returned to the province and forwarded to the provincial board, which will decide on the assessment levels to be applied.

IMPLEMENTATION SEEN BY 2028

Languido said implementation will begin only after it is enacted into an ordinance and a general revision of property values is completed. The timeline for implementation is projected between 2028 and 2030.

She noted that the province’s current valuation, which took effect in 2023, remains valid under existing rules.

However, a new law through Republic Act No. 12001 or the Real Property Valuation and Assessment Reform Act (RPVARA)—now governs the revision process, replacing earlier provisions under the Local Government Code.

The law also provides relief to taxpayers, as it effectively delays the immediate adjustment of property values that would have otherwise taken effect earlier.

Under the RPVARA, any increase in revenue from updated property values is capped at six percent of current collections.

Still, the actual revenue impact will depend on the assessment levels to be approved by the provincial board.

Languido added that property owners can still avail of tax amnesty programs until July 2026, giving them time to settle obligations under current rates.

She urged the public to view the updated SMV as a necessary reform that aligns property values with actual conditions on the ground.

“They should appreciate the said mandate. Why? Because taas-taas ang duration under LGC supposedly this 2026 mo-take effect, but because of this new law, we retain the current values. Still under this law, they can avail the tax amnesty till July 2026,” Languido said.