APPRAISAL OF 500SQM COMMERCIAL LOT WITH 5-STOREY BUILDING

APPRAISED BY : CESAR E. SANTOS

MARKET DATA : Source : Internet

NOTE : No actual inspection on these comparables and just being used to get the MODE
(statistics) of asking prices of properties in the area of Pulang Lupa 2.

FOR SALE :
 VACANT COMMERCIAL LOT
 Lot area - 200 sqm
 Location - 20th Avenue, Cubao, QC
 Asking Price – P125k per sqm
 Source : Lamudi / JMO Realty

FOR SALE :
 VACANT COMMERCIAL LOT
 Lot area - 256 sqm
 Location - Project 4. Brgy Marilag, beside St. Vincent Rolling Hills School
 Asking Price – P20M or P78,125.00/sqm per sqm
 Source : Lamudi / Property Hunter

FOR SALE :
 VACANT COMMERCIAL LOT
 Lot area - 1,430 sqm
 Location - 20th Avenue, Cubao, QC
 Asking Price – P174,216,000.00 or P121,829/sqm per sqm
 Source : Lamudi / Pinnacle Real Estate

FOR SALE :
 VACANT RESIDENTIAL-COMMERCIAL LOT
 Lot area - 200 sqm
 Location - Project 4. F. Castillo about 200 meters from Hitop and Aurora Blvd
 Asking Price – P25,200,000.00 or P85,135/sqm per sqm
 Source : Lamudi / Property Hunter

BIR ZONAL VALUE FOR THE SUBJECT PROPERTY

Since August 20, 2020 is P85,000.00/sqm

COMPUTATION OF FINAL ESTIMATE OF VALUE

BIR
  Date purchased - year 2009
 Date of valuation - year 2021 or 12 years passed
 Purchased price - P26M + about P1M transfer cost = P27M
 Lot area - 500 sqm @ P25K /sqm = P12,500,000.00
 Building Value - P27M - P12,500,000.00 = 14,500,000.00
 Building Value/sqm - P14,500,000.00 / 1,750sqm = P 8,285.00/sqm
(FA350 x 5 floors = 1,750sqm)

BASED ON THE ABOVE : at conservative increase of 10% per year compounded annually
 Land Value 2021 = P25K x (1.10)12 or 3.138 = P78,450.00/sqm say P80,000.00
 Compared to BIR zonal value since 2020 = P85,000.00/sqm

BASED ON THE ABOVE : at an increase of 15% per year compounded annually

Land Value 2021 = P25K x (1.15)12 or 5.350 = P133,750/sqm

ESTIMATED VALUE BASED ON THE ABOVE INCREASES

 ( P78,450.00 + P133,750.00) / 2 = P106,100.00/sqm (rounded to P106K/sqm)
 Land Value : 500sqm x P106K = P 53,000,000.00

BUILDING VALUE @ 2% average increase per year net of depreciation

 P8,285.00 x 0.02 x 12 years = P1,988.40 + P8,285.00 = P10,273.40 say P10K/sqm
 Therefore: Building Value = FA1750 sqm x P10K = P17,500,000.00

LAND and BUILDING VALUE ( based on the above estimates)

 Land : 500 sqm @ P80K /sqm (below zonal value) - P40,000,000.00
 Building depreciated value - 17,500,000.00
 FAIR MARKET VALUE - P57,500,000.00

BASED ON BIR ZONAL VALUE @ P85k/SQM since August 20,2020

Note : We arrived at the value of P85K/sqm more than one year before its effectivity
 Adjusted zonal value for 2021 could be : P85K x 1.15% = P97,750.00/sqm

Note : This appraiser is an active member of BIR zonal value for Cubao and one who
recommend the P85K per sqm together with other members from BIR and Assessor’s Office.
The value took effect after more than one year.

COMMENT ON ADJUSTED VALUE OF P97,750.00/sqm

 Generally, seller of property would not normally sell the property at zonal value
 Seller adjustment ( conservative) is the agent’s commission plus capital gains tax
 Most likely price/sqm = P97,750.00 / 90% = P108,611/sqm, SAY P108K/sqm
 LAND VALUE : 500 sqm x P108K = P54,000,000.00

BASED ON EXPERIENCE
 In a commercial area, usually zonal value is about 80% of FAIR MARKET VALUE
 Based on this premise : MARKET VALUE/sqm = P85K / 80% = P106,250.00
APPRAISERS OPINION on LOT VALUE
 net of discount ( market resistanc factor ) @ P100K per sqm ( COVID 19 PRICE)

FINAL OPINION ON VALUE

 Land Value ( 500sqm x P100K ) - P50,000,000.00
 Building depreciated value - 17,500,000.00
 FAIR MARKET VALUE ( land and building) - P67,500,000.00
 An increase of 150% from P27M orig. cost
 P67,500,000 / P27M = 250% LESS 100% = 150%

OUR VALUE WERE BASED ON THE FOLLOWING OBSERVATIONS:

 Location, accessibility and economic potential of the property
 BIR zonal value estimated by 3 estimators of value from BIR, Assessor’s Office and from
private appraisers as adjusted
 And this appraiser’s personal opinion also based on observation apart from the above
considerations

BASED ON THE FOREGOING, we estimated the MARKET VALUE of the subject property
with lot area of 500 sqm and improved by a a 5-storey commercial building is –

SIXTY SEVEN MILLION FIVE HUNDRED THOUSAND PESOS,

(P 67,500,000.00)
Philippine Currency, as of May 15, 2021

ASSUMPTION AND LIMITING CONDITIONS

 Information taken from fellow brokers thru ads at the internet are analyzed and assumed
correct and the current zonal value of the BIR
 No actual inspection of the comparables was made and just seen in the internet as advertised,
purpose of which is to get the MODE of asking or selling prices in area near subject property;
 We assume that the BIR zonal value is a more realistic value since it is the opinion of at least
three appraisers- the BIR representative, private appraisers and the assessor of Quezon City;
 Ownership is assumed correct and any encumbrance to the property, if there is any, was
disregarded;
 Land is valued as if vacant based on highest and best-legal use principle;
 No title verification nor relocation survey made;
 This report is confidential and cannot be used in court without this appraiser’s consent.