209,000

I've figured out why the BIR increased the zonal value for Ayala Heights to Php209,000.

Background:

+ On February 17, 2024, the BIR released new zonal values (ZV) for South Quezon City.

+ Among those revised were ZVs for Ayala Heights.

+ Prior to the revision, ZVs for Ayala Heights were Php67,000, which was set last January 2020.

+ This increase translates to a whopping 3.11x or, equivalently, a CAGR of 32% for the four years.

+ This level of increase is unprecedented.

+ Ayala Heights is well in demand among showbiz people and politicians because of its proximity to Batasan Complex and GMA/ABS.

+ But does this old village really command a Php209,000/sqm ZV, given that it's not located near a CBD?

+ The 209,000/sqm price bests even ZVs for Ayala Alabang's lots–where even more politicians live.

So why 209,000?

+ Then I noticed something...the zonal value for Ayala Hillside Estates (a newer project; previously Capitol Golf Club) was removed in the 2024 ZV revision (Ayala Hillside was there in the 2020 revision and commanded a higher zonal than Ayala Heights).

+ In other words, the BIR likely combined the zonal value for Ayala Heights and Ayala Hillside.

+ Based on previous years' closings, the two villages commanded significantly different prices.

+ Anyway, we'll see if buyers will accept the Php209,000/sqm in the coming months.