ECOLOGY VILLAGE - WHAT'S NEXT?

Following discussions with the PMO, three possible scenarios could unfold:

1. Rent Collection and Lease Renewal – The government may require existing homeowners to pay back rent (potentially covering several years) while allowing them to continue leasing their properties, similar to the approach taken with Mile Long.

2. Public Bidding – The government could reclaim the land and open it for public bidding, giving existing homeowners the opportunity to participate. However, this process could be lengthy and complex, especially considering the presence of high-profile occupants—including, reportedly, the Government of Thailand and affluent families who have downsized from their Forbes and Dasmariñas properties.

3. Status Quo – The government may opt to take no action, leaving the situation unresolved.

Given the long and complicated history of Ecology Village, how this will ultimately play out remains uncertain.

How Likely Is a Government Asset Sale?

One thing is clear: the government desperately needs funds and the government is exploring ways to increase revenue. Among the proposed measures are raising the capital gains tax on real estate transactions and estate tax to 10%. However, these adjustments alone are unlikely to be sufficient. Additionally, merely renewing leases would barely make a dent in addressing the budget deficit.

In my opinion, selling assets is the more pragmatic solution—one that may prove to be the lesser of two evils.