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Here are highlights of Pasig’s Zonal Value Revisions, as well as a short discussion on how this affects market prices.
Highlights of Pasig Zonal Values Revision
+ Upscale villages (Valle Villages) increased by 44% to 100% from the 2018 revision
+ Condo ZVs increased between 12% to 108%. Properties that saw the slightest appreciation are mostly new condos with high 2018 ZVs.
+ Similar to Makati, parking slots are no longer 70% of the ZV of the unit.
+ The BIR has broken down "All Other Condominiums" into two classes (A and B) so that ZV for prime
Effect of ZV Revisions on Market Prices
+ Sellers use the zonal value as a price anchor. They believe selling below the zonal is tantamount to selling at a loss. As a result, most sellers collectively increase selling prices (i.e., UPWARD effect on ASKING prices).
+ The higher asking prices would effectively slow sales down. Buyers and Sellers will determine, in a period of around 6 months, whether the higher asking prices are warranted.
+ Historically, values of properties located in highly demanded areas (e.g., Rockwell Makati) will hover ABOVE the new zonal values.
+ Such was the case in 2017 in Rockwell Makati. A week before revised ZVs were released, done prices were around 170K/sqm (i.e., East Block Buildings). New ZV was pegged at 200K/sqm. It took ~6 months for the market to accept the new asking prices. By 2019 new asking prices were 220K/sqm, propelled by the development of a new building (Proscenium) which sellers used as a new price anchor.
+ After ~6 months, sellers of less popular projects may lower asking prices even below zonal. We're seeing this in Makati after the Dec-2021/Jan-2022 zonal revision.
How is this relevant?
+ Sellers: Revisit your selling prices. Your net proceeds may have changed due to tax implications with the ZV revision.
+ Brokers: If you have listings in Pasig, revisit the selling prices with the owners.
+ On-going Transactions in Pasig: The date of Notarization is NOT always the reckoning date for determining whether computations are based on the old/new ZV. Some RDOs use the actual date of payment as basis. So, be careful.
You may download the Revised Pasig Zonal Values here:
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