How Property Rises in Value

The real estate investment landscape in the Philippines has witnessed a remarkable transformation in recent years, with property values experiencing a steady ascent. Among the key players contributing to this upward trajectory is Vista Land and Lifescapes, Inc., a leading real estate developer in the country. This article delves into the factors driving the rise in property value, with a specific focus on Vista Land projects.

Factors Contributing to Property Value Appreciation

Location

Vista Land strategically selects prime locations for its developments, considering factors such as accessibility, proximity to key establishments, and the overall growth potential of the area.

Proximity to business districts, educational institutions, hospitals, and recreational facilities enhances the desirability of Vista Land properties, contributing to increased demand and subsequently higher property values.

Infrastructure Development

Vista Land's commitment to developing infrastructure within and around its projects has a profound impact on property values. Improved road networks, public transportation, and other essential amenities elevate the value of education and the overall appeal of the area.

The government's infrastructure initiatives, such as the "Build, Build, Build" program, further complement Vista Land's efforts, leading to increased property values as accessibility and connectivity to other properties improve.

Quality of Development

Vista Land is renowned for its high-quality and meticulously planned projects. From innovative architectural designs to sustainable features, the company's commitment to excellence enhances the perceived value of its properties.

Well-designed and aesthetically pleasing developments attract discerning buyers, contributing to a positive perception of the neighborhood and fostering a sense of community.

Economic Growth and Stability

The Philippines' overall economic growth and stability play a crucial role in property value appreciation. Vista Land's strategic planning takes into account macroeconomic factors, ensuring that the property valuations of its projects are resilient to market fluctuations.

As the economy thrives, disposable income increases, and individuals are more inclined to invest in real estate, thereby driving demand and pushing property values higher.

Investor Confidence and Brand Reputation

• Vista Land's strong brand reputation and track record inspire investor confidence. The company's commitment to delivering on its promises and maintaining a transparent and ethical approach to business attracts both local and international investors.
• Increased investor interest contributes to a competitive market for property owners, fostering an environment where property values are more likely to appreciate.

The rise in property values in the Philippines, particularly within Vista Land projects, can be attributed to a combination of strategic location selection, infrastructure development, high-quality projects, economic stability, and investor confidence. As Vista Land continues to shape the real estate landscape, its commitment to excellence and sustainable development will likely contribute to the ongoing appreciation of property values, offering a promising outlook for both homeowners and investors alike.

5 Ways to Calculate the Market Value of Property in the Philippines

Calculating the market value of a property is a crucial step for both buyers and sellers in the real estate market. In the Philippines, several methods are commonly employed to determine the market value of a property. Here are five key approaches:

Comparable Sales Method (CSM)

• This method involves comparing the target property with recently sold properties in the same or similar location. The idea is to find comparable properties that are similar in size, condition, and amenities. Adjustments to selling properties are then made to account for any differences, helping to arrive at a more accurate estimate of the property's market value.

Cost Approach

• The cost approach calculates the market value of real estate property by determining the cost of reproducing or replacing the property. This method takes into account the current cost of construction, minus any depreciation, and adds the value of the land. While commonly used for new or unique properties, it may not be as accurate for older properties where depreciation is more subjective.

Income Approach

• Primarily used for income-generating properties such as rental units or commercial spaces, the income approach estimates the property's value based on its potential income. This involves analyzing the property's expected rental income, operating expenses, and capitalization rate. By capitalizing the net operating and gross income together, an investor can estimate the property's value in the current market.

Gross Rent Multiplier (GRM)

• Commonly used for rental properties, the GRM is a simplified version of the income approach. It calculates the property value by multiplying the gross rental income by a factor (multiplier) that is derived from comparable property and sales prices in the area. This method provides a quick estimate but should be used cautiously, as it may not account for variations in property characteristics.

Valuation by the Bureau of Internal Revenue (BIR)

• In the Philippines, the Bureau of Internal Revenue provides guidelines for determining the zonal value of real properties. Zonal values serve as the basis for computing the fair market value of real property for tax purposes. While this method is primarily used for taxation, it can also provide a reference point for property market value, especially when considering government-assessed values.

It's important to note that a comprehensive property appraisal often involves a combination of these methods, taking into account the unique characteristics of the property and the local real estate market. Additionally, consulting with licensed appraisers or real estate professionals can provide valuable insights into your property and ensure a more accurate estimation of the property's market value. Keep in mind that market conditions, economic factors, and property trends can also influence the accuracy of these calculations, making periodic reevaluations essential for staying informed about the property's current market value.

What is the role of an appraiser in determining market value?

An appraiser plays a crucial role in the real estate industry by determining the market value of a property. Market value is the most likely price a property should fetch in a competitive and open market, provided all the requirements for a fair sale are met, both the seller and the buyer act sensibly and intelligently, and there is no undue influence on the selling price. The role of an appraiser in this process is multifaceted and involves a comprehensive analysis of various factors. Here are key aspects of their role:

1. Property Inspection:
   • Appraisers begin by conducting a thorough inspection of the property. They assess the physical characteristics, such as size, layout, condition, and any unique features. The property's overall appeal, functionality, and potential drawbacks are considered during this phase.
2. Market Research:
   • Appraisers research and analyze the local real estate market to understand current trends, property values, and economic factors that may impact the property's value. This involves studying recent sales of comparable properties, current listings, and the overall demand and supply in the area.
3. Comparable Sales Analysis:
   • One of the primary methods used by appraisers is the comparative sales method. They identify recently sold properties with similar characteristics to the subject property and make adjustments for any differences. This process helps establish a benchmark for the property's market value.
4. Income and Cost Approaches:
   • Depending on the type of property, appraisers may also use the income approach or the cost approach. The income approach is utilized for income-generating properties and involves assessing potential income and expenses. The cost approach evaluates the cost of rebuilding or replacing the property, accounting for depreciation.
5. Data Analysis and Valuation:
   • Appraisers meticulously analyze the gathered data and apply the appropriate valuation methods. They consider factors such as the property's location, condition, age, improvements, and any unique features that might influence its market value. The appraiser aims to provide an unbiased and objective estimate based on these considerations.
6. Report Generation:
   • Appraisers generate a detailed appraisal report that includes their findings, methodologies used, and the final estimate of the property's market value. This report is often required for various purposes, including mortgage approvals, property transactions, taxation, and legal matters.
7. Professional Judgment:
   • Appraisers exercise their professional judgment to interpret data, make adjustments, and arrive at a final conclusion. Their expertise allows them to weigh the significance of various factors and provide an accurate and fair assessment of the property's market value.
8. Adherence to Ethical Standards:
   • Appraisers must adhere to ethical standards and professional guidelines established by appraisal organizations. This ensures that the appraisal process remains impartial, transparent, and free from any conflicts of interest.

The role of an appraiser is pivotal in a real estate valuation, providing an unbiased and well-informed opinion of a property's market value. Their expertise, attention to detail, and adherence to professional standards contribute to the reliability and credibility of property valuations, making them essential participants in real estate transactions and decision-making processes.