THE Federation of Philippine Industries (FPI) on Monday called on the government to review the zonal values of properties, particularly in areas previously occupied by Philippine offshore gaming operators (POGOs).
President Ferdinand Marcos Jr. signed Executive Order 74 banning POGOs as of Dec. 31, 2024.
Property prices had been artificially driven up at the height of POGOs’ presence nationwide, which triggered a surge in demand for residential and commercial spaces.
“This is why in BF [Homes], for instance, the selling price before was only about P20,000 per square meter. Now it has almost doubled. That sharp increase was not organic. It was fueled by government policy that allowed POGOs to flourish,“ FPI chairman emeritus Jesus Arranza said.
The government must correct the consequences of its earlier decisions, particularly in terms of zonal values used as the basis for taxation, Arranza pointed out.
Zonal values set by the Bureau of Internal Revenue (BIR) determine how much property owners pay in national and local taxes.
At the national level, these include capital gains tax, documentary stamp tax, value-added tax, donor’s tax, and registration fees.
At the local government level, property owners shoulder real property tax, special education fund tax, and ad valorem tax on idle lands.
“When these values are inflated, ordinary citizens are burdened with disproportionately high taxes even when market conditions have already shifted downward following the departure of POGOs,“ Arranza said.
Office space vacancies
Real estate services and investment management firm Colliers reported in April 2025 that vacancies of office spaces across Metro Manila increased following the exit of POGOs.
In addition, traditional and outsourcing firms have also vacated office spaces in the Bay Area, Quezon City, and Bonifacio Global City due to non-renewal of leases.
As of the fourth quarter of 2024, these areas had at least 50 listings of fully fitted and as-is-where-is office spaces in the market.
By yearend of 2024, Metro Manila’s office sector had 33 percent (260,000 sqm) vacated office spaces directly linked to the banning of POGOs.
Unless zonal values are recalibrated to reflect current market realities, property owners will continue to face excessive tax obligations that no longer correspond to actual property values, Arranza said, warning that this could discourage legitimate investment, weaken the real estate sector, and further strain households already coping with rising living costs.
“The exit of POGOs has clearly changed the landscape. Government must recognize this shift and act accordingly. Adjusting zonal values is not about giving favors — it is about fairness, accuracy, and protecting citizens from the unintended consequences of past policies,” Arranza added.
