# How to Calculate Fair Philippine Land Value



## mcdonour

Hello
My Philipina wife and I are looking at land to buy and build a house on but would like help on understanding what fair prices are for land and how to get answers.
We understand that it matters where the land is and proximaty to things such as beaches and cities but want to know where we can evaluate what is a fair price.

We are considering buying in Palawan, close to Coron and near a beach.

Should we contact the local city hall administration to ask property prices in area of lots for sale?

We could canvas other properties near by but what if there are no similar lots for sale>

Does anyone have a better suggestion?

We are looking to pay fair price, not double fair price.

Thanks


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## Phil_expat

Since you got no replies here are my tips. Internet prices are a lot higher, better to drive around and ask. Let your wife find a place and get a price. You will be given a higher price than she will.


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## HondaGuy

For private sales, internet prices (like those found on Sulit) will be a lot higher than what can be negotiated in person. I also cant agree more with the fact that as soon as it is known that a foreigner is involved, the price will go up. Much better for your wife to go without you, and have her use her maiden name so they dont find out about her association with a foreigner.

If you are looking at a house or lot in a planned subdivision (like one of the ones that Camella homes sells), those prices are pretty much set and should be the same for foreigner and pinoy alike.

Before I bought my lot near Angeles City, I had some filipino friends call the sales office and ask about prices there and getting a discount and they wouldnt budge on the price for them and I ended up paying the same price they would have.

Again, private sales will be completely different and everything will be negotiable.

Good luck!


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## Terpe

I'm just wondering if your wife could get to see the tax declaration.
Firstly, to see if the owner has paid. 
Secondly, if they haven't they will tell you how much is due.
Thirdly, the transfer tax and registration fee should be around 0.5% of the land price. 
Yes, I know that the land is likely to be undervalued but at least it's a reasonable starting point.

I'm pretty sure you know there's a lot more things to do to protect your investment.
Depends what you want to do with the land, access to it, who and how many title holders there are, and also if the property is mortgaged and by whom.

Access to water, consideration to landline telephone access, internet access, electrical supply, all become important if you're planning to build a house.

Good luck, it's exciting.


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## seram

Wow...."Coron".....You have gone top shelf...

If any sellers get a smell that a foreigner is involved in the sale the price will double.

In Zamboanga City I paid 1,000 peso per square meter but that lot is close to the city and they knew a foreigner was buying. In the province of Pangasinan my friend paid 150 peso a square meter so this tells you the price depends on where you wish to buy. 

You are talking about Palawan or Coron and near a beach. Expect to pay the top price. If the owner get one whiff that a foreigner wants the lot then dont expect a bargain price. Your wife should be the one to do the bartering.

Palawan has now become famous because of the publicity around the it becoming one of the "Wonders of the World." Coron has many beach resorts and attractions. 

I personally think you will pay top price of over 10,000 peso a square meter. 

Only you know your budget so I guess the only advice we can give, is that you do not allow the owner of any land you are interested in know that you are involved... Good luck...cheers


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## cvgtpc1

Eventually before or after the transaction they're going to figure out the foreigner is around...has anybody ever encountered any bad ramifications?


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## Jbantillo

mcdonour said:


> Hi Have you considered buying in Cavite area?


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## Manitoba

I'd value it same way I would estimate value of anything.

What does similar properties in the area sell for?

What is the appreciation potential? That is will the property, and similar properties locally appreciate soon? Is there some development that will impact land values? ( positive or negative)

What is the net present value of the cash flows that the property can generate? If it is farm land, rental or commercial you should be able to estimate this. Even if you are buying residential land to live in, you should have an idea what the land will rent for on the open market.

Don't forget to take a critical look at disaster potential, landslides, storm surges and flooding can be problems here. Asses the risk and act accordingly.

Finally what is the property worth to you? If it is your dream location, with perfect views, near features you want with no downsides, it may be worth more to you than the market price.

As others have said, if they believe a rich foreigner ( redundant terms here) is involved the prices will increase and any negotiating lower will be difficult.

Also remember that foreigners cannot actually own land here except under very limited circumstances. You should look into means of protecting yourself.


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## fmartin_gila

Time and circumstance play into the equation. Asawa bought a lot in Antique some years ago for P10 per sqmtr. Just paid tax on it and found its value is now P80,000 per sqmtr Cause it is a potential site for a cell tower.

Fred


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## M.C.A.

Welcome to the forum Jbantillo... the post that you're commenting on is from 2013 so very old and so far we haven't heard anymore from Mcdonour.


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## Gary D

Go and talk to the local bank managers, they will have a handle on land values. Most owner just pick a number out of the air.


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## Lunkan

Gary D said:


> Most owner just pick a number out of the air.


 Many sellers ask crazy far to high prices by they have been *fooled* by other sellers saying (=try to bragg) they have got much more pay than they *realy *got...

(Now I have a very cheap deal close to done) 
but when I were searching many were asking much to high prices compared to what sellers of similar real estates REALY get, so I told several 
"Take away a zero and I will perhaps get interested  " 
Some even ask 2-3 zeros to much!

In some municipoalies officials make crazy "valuing" of rural inland land ten times higher than sellers have problem to sell for there!!!


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## cvgtpc1

Paid $100 for land in the middle of nowhere in 85, now told worth many hundreds, thousands, or millions, depending on who you talk to.


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## bigpearl

I have to agree with Lunkan and other members, numbers are pulled out of the air and often push the prices up because the unwary never did the research and everyone else pays after that. Buying property is a big investment and requires lots of research, us it was over 3 years of looking to find what we wanted and through this process got a feel for the real prices in our area and as Lunkan said not the prices with extra zeros.
Beach front vacant land here goes from 5 to 20K per M2 (our experience much less) depending on the lot size and location to services.
Here we paid 3,400 per M2 (5.75M) for 1,688M2 the owner originally wanted 7,700 per M2, some 13M. We watched as the price went down over the years to 9M then started negotiations.
This property has a 3 bed 2 bath home of about 160M2, a tax declared lot of 800M2 to the high tide mark. I consider those the bonus. The value of property is what you pay for it, it also tends to dictate realistic expectations to the dreamers aiming sky high, the lot next door that is slightly smaller and vacant is 13M and she wonders why she can't sell. There are a couple of houses here for sale (big western houses) one lot back of the beach, other side of the road with no sea views 22 and 25M each, recently listed 3 lots up is a large house on 2,000M2 asking 35M (on the beach) Greed, unrealistic expectations and a long wait unless some fool with plenty of money falls into the trap.

OMO.

Cheers, Steve.


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## bigpearl

cvgtpc1 said:


> Paid $100 for land in the middle of nowhere in 85, now told worth many hundreds, thousands, or millions, depending on who you talk to.


Agree, but then again we are older, and wiser. The first house I purchased was 35K, sold 10 years later for 330K, now apparently over a mill according to friends, a commercial property I acquired not long after my first house was 30K, renovations 70K, rented (2 tenants for 10 plus years) sold for 500K, recently sold for 1.4M
It's all relative and ride the waves we do.

Cheers, Steve.


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## Lunkan

bigpearl said:


> Beach front vacant land here goes from 5 to 20K per M2 (our experience much less) depending on the lot size and location to services.
> Here we paid 3,400 per M2 (5.75M) for 1,688M2 the owner originally wanted 7,700 per M2, some 13M. We watched as the price went down over the years to 9M then started negotiations.


During my searches for inland forests I have seen some very cheap at ocean lands for sale e g:
/7 PESOS per m2 10 hectares but rocky shore just a tiny "sand beach" big enough for two sun chairs  and full of wild forest, so probably not geting permit to cut or clear so can't do anything with the land . No road, but improved road is under construction to a small village just at other side of a small bay so it will become accesable.
/14p/m2 at a subhighway. 5 hectares. But mangrove "beach" 🤣
/15p/m2. 78 hectares although by it is that big, most of it isn't beach. Adverticed as MINING Prospected land in a municipaly where they don't want any mines!!! 🤣 Realy long beach, BUT cleared land very low between two rivers in a narrow walley between steep mountains so I suppoue it will be much flooded. At a main island but no road and very far by boat to any road. Not very far to ok road, few kilometers, but it would cost very much to build because would need to pass high mountain.
/A saw at a Deed of sale document, one partly* nice beach* DID cost a few pesos per m2 two years ago when old owner got scammed by buyer, who bought it just to sell it for much more. Has bad "highway" connection, but improved road is under construction.


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## Hey_Joe

Who calculates asking Philippine land value - The owner/seller

Who calculates fair Philippine land values - The City Assessor. It's where to go to see fair land values.

It will reveal the comparison of what owners ask compared to what it's assessed and it's getting worse although If we were to sell we would ask the max price as well. 

You pay annual land tax not on what you paid for the land but what the city assessor values your property.

LGU's follow BLGF The Manual on Real Property Appraisal and Assessment Operations SOURCE: https://blgf.gov.ph/wp-content/uploads/2015/08/ManualRPAandAO.pdf











The City Assessor shall take charge of the city assessor’s office, and shall:

Ensure that all laws and policies governing the appraisal and assessment of real properties for taxation purposes are properly executed;
Initiate, review and recommend changes in policies and objectives, plans and programs, techniques, procedures and practices in the valuation and assessment of real properties for taxation purposes;
Establish a systematic method of real property assessment;
Install and maintain a real property identification and accounting system;
Prepare, install and maintain a system of tax mapping, showing graphically all properties subject to assessment and gather all data concerning the same;
Conduct frequent physical surveys to verify and determine as to whether or not at all real properties within the City are properly listed in the assessment rolls;
Exercise the functions of appraisal and assessment primarily for taxation purposes of all properties in the City;
Prepare a schedule of the fair market value of the different classes of real properties in accordance with the provisions of the Local Government Code;
Issue, upon request of any interested party, certified copies of assessment records of real property and all other records relative to its assessment, upon payment of a service charge or fee to the City Treasurer;
Submit every semester a report of all assessment, as well as cancellations of assessments, to the City Mayor and the Sangguniang Panlungsod; and
Exercise such other powers and perform such other duties and functions as may be prescribed by law or ordinance.


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## Lunkan

Hey_Joe said:


> Who calculates asking Philippine land value - The owner/seller


 I calculate myself  by checking what the cheapest ask for similar.


Hey_Joe said:


> Who calculates fair Philippine land values - The City Assessor. It's where to go to see fair land values.


Well. SUPPOUSED to do that, but in some municipalies they "value" crazy to high 
E g in Taytay for inland undeveloped land close to ok road they "valued" such 10 times higher than sellers have big problem to sell for!
In an other municipaly - I have forgot where - the "valuing" is 5-6 times to high. 


Hey_Joe said:


> You pay annual land tax not on what you paid for the land but what the city assessor values your property.


 The yearly can be correct. The HIGHEST of them when it's at the buying. 
The yearly tax isn't so much anyway, but when it's at the buying that can be big money


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