SRP lot prices to rise from P8T-P16T/sq.m.

PRICES of lots at the South Road Properties (SRP) will double this week, from a minimum price of P8,000 per square meter to P16,000. That is, if the Cebu City Council approves a resolution seeking to increase the rates.

Taking the cue from the Cebu City Appraisal Committee, Councilor Jose Daluz III said there is a need to raise lot prices since ongoing developments there have increased the value of the property.

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The appraisal committee earlier re-appraised the SRP lots and passed a resolution increasing the price of interior lots from P8,000 to P16,000, and the lots along the Cebu South Coastal Road from P11,000 to P22,000.

Daluz sought to raise the rates, believing that the value of the lots rose after Filinvest Land Inc. and SM Prime Holdings Inc. bought large portions of the SRP, with plans to start development by May.

“The sale and rental of SRP lots to prominent locators, like the SM Prime and Filinvest, and the corresponding ongoing and prospective development of the sites have enhanced the development of the whole property, increasing its valuation and marketability,” he said.

Mayor Tomas Osmeña first announced the increase of lot prices when the City closed the sale of a 30-hectare area with SM Prime last January.

Daluz expects the resolution to be approved tomorrow without delay, as the new rates will be to the City’s advantage.

The City will not have to get any clearance from the Commission on Audit (COA), although it will need to get the agency’s approval when it sells other SRP lots using the new rates.

“We are the owner of the property and as the owner it’s the City that will decide on the price. There is no ceiling as to how high the lot prices can be. The only rule is that we don’t go below the rates approved by COA earlier,” said Daluz.

If the resolution is approved, lots located within 80 meters from both sides of the south coastal road and the Mambaling access road will cost P22,000 per square meter. These lots are considered prime properties.

All other lots outside seafront Pond F and the 80-meter area from the coastal and access roads are considered non-prime properties and will be sold at a minimum price of P16,000 per square meter.

With 10.6 hectares sold to Filinvest, 30 hectares sold to SM Prime, and another 40 hectares set aside for the City’s joint venture with Filinvest, the City still has 160 hectares of disposable land at the SRP.

In May 2008, COA appraised interior lots at P7,100 per square meter and prime lots along the coastal road at P9,200 per square meter. Pond F lots were appraised at P11,400.

The appraisal was based on the average values of schedule market data, the Bureau of Internal Revenue zonal valuation and opinions of private appraisers.