September 29, 2020

Giorginna Claire Ramos Lin

LVM 202: Assignment 1

1. Describe and discuss the stages of real property development by combining the processes
that were described by Miles et al. (2007) and Millington (2000a). Your discussion of
each stage of the process should include—but not limited to—the following:
A. The gist of the stage;
B. One to two (i.e., at least one and at most two) factors that will determine the
success of the stage, as well as the impact of these factors on the entire
development overall; and
C. What service(s) can a valuer provide with regard to any particular stage?

After comparing both Millington and Miles’ publication on the stages of real property

development, Miles’ Real Estate Development Process has a clear framework, whereas

Millington’s discussion of the stages are more in depth. Both authors note that unlike other

frameworks and processes that are typically linear or chronological, the stages of a development

process of real property, tends to overlap with each other and more often than not is undertaken

in a variety of steps that may be simultaneous — all depending on what the developer has in

mind. Thus, in the discussion of the stages, Miles’ 8 stage model of Real Estate will be

highlighted1, with Millington’s stages acting as supplement to each stage2.

1. Formation of an Idea / Development Concept

• The first step to creating something is to have an idea or multiple ideas. During this
stage, the developer may have had a sudden burst of creativity and imagination to

come up with a development concept or has been meticulously thinking of a solution

for current market problems. Either way, the development process starts with this

1 Miles, M.E. et al. 2007. Chapter 1: The Real Estate Development Process, pp.3-17. Real Estate Development —
Principles and Processes. Urban Land Institute: Washington.
2 Millington, A.F. 2000. Chapter 2: Stages of the Development Process, pp.7-24. Property Development. EG Books:
London.

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 concept that a developer visualizes he can turn into reality.

• Important questions that developers need to answer during this starting stage are: Is
there a problem that I want to solve with this idea? Does this really solve a problem?

Who will be the end-users of this development? How will I plan out this development

to fulfill the end user’s needs? What would be the right location for this? In addition to

these questions, information such as current market conditions of supply and demand

in relation to real estate, environmental and economic factors, as well as political

climate need to be looked into before committing to planning a development— real

estate development is a long-term process and commitment that involves huge effort,

investment, and time, among others. Though this is the first stage, the developer must

already have an estimate of the financial feasibility before pursuing further plans. In

answering all these questions and doing preliminary research regarding market

conditions, the developer will be able to create a more successful development.

Millington (2000) talks about deciding between specialized or versatile buildings—

which can make or break the development. Both have its advantages and risks,

therefore it is necessary to decide on the kind of development a developer wants at this

point because it is the foundation of the next stages.

• Since this is still during the early stages, a valuation expert is not yet needed.

2. Idea Refinement

• From the various ideas that the developer has conceptualized in his mind, the
developer will narrow it down to one that he will pursue— the one that is most

feasible. This decision is hinged on the answers and preliminary research he has

conducted during the initial step. This stage requires the search for a suitable location

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 for the potential development. Millington (2000) terms it as a “site search and site

study.”

• This includes a closer look at the potential locations that the developer can consider.
More than the geographical landscape, an important aspect that developers should

consider is the neighborhood— the existing developments as well as potential

developments that would either complement or put the conceptualized development at

a disadvantage. The developer should also conduct research on the immediate market

and reach out to immediate stakeholders such as the land owner, immediate

community, prospective tenants, potential investment partners, and other professionals

who might be interested in the development to capture a more realistic statistic of the

level of interest in the type of development that developer has in mind. On the other

hand, due diligence on legal aspects of the proposed land to be acquired for the

development must be undertaken to gather information on the property’s history and

restrictions.

• The developer brings together a development team that consists of professionals that
will provide the expertise needed in other aspects such as financing, evaluating estates

(this is when the valuation expert enters the equation), researching, etc. to fill in the

roles needed in order to cover all bases in creating a feasible and realistic development.

3. Project Feasibility

• Although preliminary research is conducted and consultations are done during the first
two steps, an in depth market research and various feasibility studies are conducted

during this stage to determine the viability of the project. Along with an initial

financial appraisal proposed by an appraiser, a thorough market analysis regarding the

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 demand of the proposed project can either reassure or deter a developer from pursuing

the project.

• Feasibility studies include Economic Feasibility, Legal Feasibility, Operational

Feasibility, Scheduling Feasibility, and Technical Feasibility. Economic feasibility

covers the financial capability of the developer, cost benefit analysis, financial

projections, return on investment, potential tax on the finished project (which is often

overlooked), etc. It is crucial to gather all possible information through the help of a

valuation expert, accountant, and various consultants to determine the financial

viability and if the developer/s would have to pool in investors for the project. Legal

Feasibility pertains to land-use and zoning laws and other related laws established in

the locality and country regarding real estate developments. It also consists of

documents needed for the approval of such development. Operational Feasibility takes

into consideration building permits and documentation, construction logistics, and if

the proposed development will fulfill the needs of the market. Though development is

generally a long process that may take years, it is necessary that the project schedule

does not stretch out for too long since this would add more cost in terms of labor and

inflation. This is where Scheduling Feasibility comes in so developers are able to

estimate how long it would take to finish a project— which will affect costs. Lastly,

technical feasibility study takes a look at the technical resources and knowledge

needed to bring the idea to life.3 Allocating resources and time to gather extensive

market research and clear feasibility studies spell the difference between a

development built for success or disaster

3 Mukherjee, M. & Roy, S. 2017. Feasibility Studies and Important Aspect of Project Management. International
Journal of Advanced Engineering and Management, Vol. 2, No. 4, pp. 98-100.

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 • At this stage, a valuation expert’s knowledge and skills in market research and
economic feasibility (as well as the other types of feasibility studies that overlap with

valuation) is needed. A bulk of information needed for the project is hinged on a

valuer’s professional opinion— thus it needs to be as accurate and clear as possible.

4. Contract Negotiation

• Prior to signing contracts and committing to the project, the developer/s take into
account all information gathered in this previous stage to come up with a final decision

on the project design and formal plans with the help of the development team

(architects, engineers, designers) that was created in the earlier stage. After which, this

formal plan is released to contractors who are interested in taking on the project.

Initial contracts are drawn up and negotiated to include contingency plans and penalty

clauses to protect the developer. At the same time, potential investors are contacted

and all necessary permits and documents from the local government must be acquired.

• A developer’s skill in negotiation is tested during this stage— if he can attain the
necessary resources for the project at the best possible terms, conditions, and price

point. At this stage, it is necessary to take time to go over contracts and negotiations

before committing.

• Though the valuer is not as involved compared to the previous stage, information on
the market demand and prices are updated as necessary. A developer may also consult

with a valuation expert regarding some related contracts.

5. Formal Commitments

• Signing of contracts commence after careful evaluation. The signed contracts

symbolize a long-term agreement with concerned parties. As in all stages, the

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 developer should always have good communication with everyone involved in the

project in order to immediately point out problem spots and come up with a solution to

ensure success. During this stage, developers should have already arranged loan

agreements that were planned for in the earlier stage.

• According to Millington (2007), examples of contracts to be signed are the following:

“joint venture agreement, construction loan agreement and permanent loan

commitment, construction contract, exercise of land purchase option, purchase of

insurance, and prelease agreements.”

• A valuer’s involvement in this stage is during appraisal of collateral property, if

needed for loan agreements. Aside from this, a valuer’s professional skills and

knowledge is necessary during the pre-lease discussions.

6. Project Construction

• Ideally, site purchase occurs at this stage. Millington recommends that developers
should “seek to delay that [site] purchase until the latest possible moment in order to

restrict the costs of development.”4 The actual grunt work commences during the

Project Construction stage— the idea finally turns into something tangible. Since

changes during a construction cost more time, effort, and money, it is necessary for the

developer and the development team to set clear roles and firmly agree on a schedule

with the contractors and subcontractors. In order to ensure that everything is going

according to plan, schedule, and budget, the developer closely supervises the

construction process, coordinates with contractors, development team, investors, and

resolves emergencies, disputes, and concerns when they arise.

4 Millington, A.F. 2000. Chapter 2: Stages of the Development Process, p.22. Property Development. EG Books:
London.

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 • A good developer must be aware of everything that is happening on site and off site—
while construction is on-going, he must still continue to stay updated on market

research and changing trends, while some aspects of the project development can still

be changed. This crucial stage tests teamwork and management skills of the developer

and his team.

• A valuer’s expertise is not necessarily needed during this stage. However, if the
developer wishes to still very much needed during this stage to keep the team up to

date regarding market prices and changing or unchanging demands and trends.

7. Completion of the Project and Formal Opening

• Even before this stage, the developer and his marketing team should have already
started implementing marketing strategies regarding the development. Showrooms,

scale models, and advertisements broadcasted through different channels are some

examples of how a developer could get the attention of other prospective buyers. Once

the project is finished, inspections are carried out before opening doors. The

development must comply with the necessary certifications needed to ensure safety of

the tenants and neighborhood. Loans are also paid off after the development has been

completed.

• Some buyers or investors would also request that they be shown around to see if they
are satisfied with the purchase— if there are concerns, the developer addresses all

these with the help of building engineers, designers, and concerned parties before

formal opening/turn-over.

• Valuers are still involved during this stage with regard to supplying information about
market demands, to supplement further marketing strategies and negotiations with

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 prospective buyers. Prospective buyers will also be bringing in their own valuers to

give their opinion on the value of their potential investment. Developer’s valuer and

buyer’s valuer should come up with more or less the same opinion about the value of

the development.

8. Project Management

• The development process does not end with the completion of the project. The
developer has to follow through by overseeing the property and ensuring that the

development continues to satisfy the market needs— even as trends and demands

change. More often than not, property managers and maintenance crew are outsourced

for this task.

2. In Question 1-C, you have identified services that a valuer can provide in specific stages
of the real property development process. Provide extended descriptions of each service
that you identified. Describe the procedure and methods used by valuers. How exactly do
valuers perform the services that you identified in Question 1-C? Do some research to
answer this question; do not confine yourself to the readings in this course.

A valuer or a real estate appraiser is “expected to perform valuation services competently and in

a manner that is independent, impartial, and objective.” 5 According to RA 9646, a real estate

appraiser is defined as:

A duly registered and license natural person who, for a professional fee,

compensation or other valuable consideration, performs or renders, or offers

to perform services in estimating and arriving at an opinion of or acts as an

expert on real estate values, such services of which shall be finally rendered

by the preparation of the report in acceptable written form.6

5 Uniform Standards of Professional Appraisal Practice. 2012. The Appraisal Foundation. Washington, D.C.

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To develop a professional opinion of value for a property at a point in time, a valuer must be

skilled with gathering research on current social, economic, political, and environmental trends

and necessary information on market supply and demand. These information will be used in

relation to collected data regarding specific real estate in question, so as to create well-informed

opinions. Information on nearby developments are also essential in coming up with an opinion of

future benefits of owning the property— this includes data on comparable listings in the area,

selling prices, and analysis on the four agents of production, namely land, labor, capital, and

entrepreneurial coordination7.

Before taking on a valuation assignment, valuers must clearly distinguish the type of value the

client is looking for since there are various kinds of value in relation to real estate: market value,

fair value, use value, investment value, and assessed value to name a few.8 These values are

affected by four factors that valuers need to be familiar with: utility, scarcity, desire, and

effective purchasing power. Interrelationships among these factors affect supply and demand

levels which in turn influences value. Utility is the property’s potential to fulfill needs and

demands— for instance, commercial properties built for businesses and investments while

residential complexes are created for shelter. Integrated with utility, scarcity affects the value of

a property as well— a scarcer parcel of land is more valuable, thus driving the land price up.

Utility and scarcity are more objective factors, whereas desire is more of a subjective factor that

considers purchaser’s personal wants. When an individual or group have a desire to possess

6 Philippines. Republic Act No. 9646: An Act Regulating the Practice of Real Estate Service in the Philippines,
Creating for the Purpose a Professional Regulatory Board of Real Estate Service, Appropriating Funds Therefor
and for Other Purposes. Republic of the Philippines, 2009.
7 Appraisal Institute. 2013. Chapter 3: The Nature of Value. The Appraisal of Real Estate [14th Ed.], pp.23.
Chicago, IL : Appraisal Institute.
8 Appraisal Institute. 2013. Chapter 3: The Nature of Value. The Appraisal of Real Estate [14th Ed.], pp.27.
Chicago, IL : Appraisal Institute.

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property to satisfy a need or want, coupled with effective purchasing power, demand is created. 9

With regard to the stages of development, the role of the valuer is evident in the following

stages:

1. Idea Refinement — A valuer fills in the needed role in a development team to

create feasibility studies through initial financial appraisal. This initial financial

appraisal allows the developer and his team to reach a decision to take on the

project or dismiss the idea.

2. Project Feasibility — During this stage, a valuer’s skills and knowledge in market

research is needed to create economic feasibility studies to inform a developer of

the value of his investment on the development. Data collection includes market

area data which looks into the characteristics of the neighborhood and locality,

subject property data which accounts for the characteristics of land use and assets,

and comparable property data which is collated information on cost and

depreciation, capitalization rates, listings, and offerings. Using the various types of

data, a valuer is able to create a market analysis that supplies information on

demand, supply, and marketability studies, as well as highest and best use analysis

for the property.10

3. Contract Negotiation — The valuer continually updates the team regarding

information on the market demand and prices, and cross checks this with the

contracts being negotiated.

9 Appraisal Institute. 2013. Chapter 3: The Nature of Value. The Appraisal of Real Estate [14th Ed.], pp.24-25.
Chicago, IL : Appraisal Institute.
10 Appraisal Institute. 2013. Chapter 4: The Valuation Process. The Appraisal of Real Estate [14th Ed.], p.37.
Chicago, IL : Appraisal Institute.

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 4. Formal Commitments — Some developments have plans for securing a loan at an

early stage. A valuer is employed by a lending institution to determine the collateral

value before the developer secures a loan. Aside from this, for the developer side, a

valuer’s professional skills and knowledge is necessary during the pre-lease

discussions, if needed.

5. Completion of the Project and Formal Opening — Interested buyers of property

will often hire their own valuer to gather their own data regarding the value of the

development.

To accomplish the tasks for each development stage, a valuer utilizes three approaches to

determine value needed for the project:

1. Cost Approach – value is determined as the cost of replacing the improvements

added to the estimated cost of land minus depreciation. This is especially significant

for evaluating the value of new properties and to come up with information for the

other two approaches to value: income capitalization approach and sales

comparison.

2. Income Capitalization Approach – future benefits are emphasized in this approach

— value is determined by the property’s ability to generate future income. This

approach has two methods: through the direct capitalization method wherein

capitalization rates or income multipliers are utilized and yield capitalization which

takes a look at several years of foreseen income is converted through the use of a

yield rate. For instance, for a proposed development, the valuer gathers information

on the property’s projected annual income. This is then multiplied by a factor

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 representing its occupancy rates, minus annual operating expenses, which gives an

idea of the projected net income. By using the principle of discounting to convert

the figure to a present value, an estimate of property value can be determined.

3. Sales Comparison Approach – value is determined by cross referencing prices of

recently sold comparable properties in the same market. A valuer must be able to

determine which of the elements of comparison will be used in order to determine

the degree of similarity since the more similar the comparable properties are, the

more accurate the derived value. It is important to note that when comparing

properties, data used should be of the same time range.11

3. Describe the stages of development of an actual commercial building or commercial

complex using the stages of real property development that you presented in Question 1.
Choose a development that reached the final stage of leasing out commercial spaces, even
if some intermediate stages were skipped (e.g., no market research). Your answer will be
graded based on the completeness and quality of information that you can present
regarding particular development stages. If you do not have information about a
particular stage, state this in your report and make an educated guess as to what
happened in that stage, given what you know about the preceding and succeeding stages.
Information presented will earn more points than conjecture offered, so be sure to select
a building or complex of which you can obtain much information about its development
process. In your discussion of each stage, you should include: (a) the people who were
involved; and (b) the outcome of the stage—whether it was successful, whether it
deviated from the ideal situation that is described in our references, etc. Discuss insights
and lessons learned for improved practice as well as any noteworthy issues.

Situated along Ayala Avenue, nicknamed the Wall Street of the Philippines 12 because of the

various commercial buildings where offices of top global and local business are located in, NEX

Tower developed by NOVA Group “[features] world class architecture, top level construction,

premium materials, and the highest sustainability criteria to set a new standard for commercial

11 Appraisal Institute. 2013. Chapter 4: The Valuation Process. The Appraisal of Real Estate [14th Ed.], pp.44-48.
Chicago, IL : Appraisal Institute.
12 Hollis, C. 2019. Makati retains its status as Metro Manila’s top residential destination. dotproperty. Retrieved
from https://www.dotproperty.com.ph/blog/makati-retains-status-metro-manilas-top-residential-destination

12
real estate in the country.”13 Globally certified as a Green Building with LEED’s highest

certification (Platinum) on the 18th of July 2009 14, it is certainly an impressive 28-story building

that utilizes a biophilic design that creates a more productive and efficient workspace in the heart

of the hustle and bustle of Makati City.

a. Idea

NOVA Group, the team behind the NEX Tower, is headed by brilliant designers and architects

who have the passion to create legacy buildings that benefit not only those who will occupy the

building to have a unique city life experience, but also the community as well. 15 Founder and

managing director, Ricardo P. Cuerva, headed the project with sustainability in mind. Unlike

those closed off commercial buildings along Ayala Avenue, NOVA Group’s concept of creating

an innovative green building that is transparent and more open started off this project.16

b. Idea Refinement

With the objective of creating an innovative sustainable office building, NOVA Group drafted

out building designs with an in-house team and outsourced experts and professionals. According

to Cuerva, the “kick-off” meeting happened in 2014. Four and a half years later, the development

was completed. The following are key members behind the development:

Developer: NOVA Group

Managing Director: Ricardo C. Cuerva

13 The Manila Times. 2019. NEX Tower: Pushing boundaries beyond extraordinary. Retrieved from
https://www.manilatimes.net/2019/05/20/public-square/nex-tower-pushing-boundaries-beyond-
extraordinary/556945/
14 “NEX Tower.” n.d. Green Building Information Gateway. Retrieved from http://www.gbig.org/activities/leed-
1000055591
15 “We are NOVA Group.” Retrieved from http://nova.ph/project/nex-tower/
16 Torres, J.A. 2019. NEX Tower’s humanist design makes good business sense. BluPrint. Retrieved from
https://bluprint.onemega.com/nex-tower-humanist-design-makes-good-business-sense/

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 Design Consultant: Skidmore, Owings & Merrill LLP (SOM)

Executive Architect of Records: Roy Villarosa Architects

Civil & Structural Engineer: SY^2 & Associates

Mechanical & Electrical Engineer: RTM Mechanical Engineering Services

Lighting Consultant: SBLD Studio

Landscape Architect: Vertical Green (green wall consultant)

Green Building Consultant: Barone International

Main Contractor: Nova Group 17

Skidmore, Owings, & Merrill (SOM) is an influential architectural firm that designed the Burj al

Khalifa in Dubai, the tallest building in the world, as well as the famous One World Trade

Center in New York. When NOVA Group decided that they wanted to build a premium office

tower along Ayala Avenue, SOM was the logical choice. Though there were other firms that

were just as qualified, Mr. Cuerva had a good working relationship with the director of SOM,

Nick Medrano, since they both studied at the Columbia University Graduate School of

Architecture. For Cuerva, when selecting an architect for a project, it is important that the

developer knows his own working style and the prospective architect’s working style, and if both

parties have the same goal in mind because a lot of challenges can arise from working on a long-

term project— both teams have to be able to resolve conflicts together.

SOM brought in a lot of fresh ideas to create something extraordinary and impressive. Using 3D

models, various parts of the building were created to see which parts of the initial plan needs

refining. For instance, there was a choice between doing a two-story lobby or a 16 meter tall

lobby. Through these models they were able to visualize what they wanted to create. With

17 Nex Tower. n.d. Construction+. Retrieved from https://www.constructionplusasia.com/my/nex-tower/

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various innovative concepts brought in by SOM, Mr. Cuerva had to factor in how the concepts

will be brought to life since NOVA Group was also the contractor for the project. The idea of a

living green wall in the lobby was also a contribution of SOM, which resulted in NOVA Group

bringing in Vertical Green, a Singaporean company to do the irrigation. More design ideas that

would improve working conditions such as having a green wall, a deck where co-workers can

hang out or have some quiet time, and more minute details such as using LED lights and creating

a space wherein more natural can enter the building. There was no information regarding

securing loans or how the project was financed. However, based on what Cuerva was saying

along the lines of being willing to spend or invest more in something iconic and innovative, I

suppose that NOVA Group had investors for this big of a project. Other key groups such as

Villarosa Architects and SY^2 & Associates were also with NOVA Group from the inception of

the idea. Villarosa Architects has worked with NOVA Group on a number of developments, so

there was a good rapport from the beginning. They were the local architects in charge of the

construction documents since they were familiar with local codes and development protocol.

Since SOM is an international firm, design ideas are coursed through Villarosa Architects to

ensure that the drafted plans will work here in the Philippines.18

c. Project Feasibility

Idea refinement and project feasibility went hand in hand during the development process. While

deciding on what designs to incorporate, Cuerva and his team would consider the feasibility and

push through with those ideas since NOVA Group was also the contractor for this— they have

their own team of in-house professionals to gather information for feasibility studies and

projections. As for scheduling feasibility, based on the interview with Cuerva, he was asked

18 Torres, J.A. 2019. NEX Tower’s humanist design makes good business sense. BluPrint. Retrieved from
https://bluprint.onemega.com/nex-tower-humanist-design-makes-good-business-sense

15
when the kick-off meeting happened, to which he responded, “Five years ago. I’ve grown a lot of

gray hair since then, but yeah, we completed on schedule,” indicating that the schedule for the

project completion was followed.19

d. Contract Negotiation, Formal Commitments, and Construction of the Project

There was not a lot of information regarding specifics of the contract negotiation and

commitments. I would assume that this is because NOVA Group is both the developer and the

contractor of the project while some of the outsourced professionals they hired have worked

other projects with them. According to Cuerva, since they are their own contractors, “the quality

is high because we weren’t having it built by someone else who bid at the lowest price and had a

different set of goals for the project.” This is understandable seeing that NOVA Group has been

in the real estate business for more than two decades so they are bound to have trusted firms they

have good rapport with that also share their ideas and vision. Since many of the designs were

futuristic and rarely done in the Philippines, Cuerva and his team had to figure out how to bring

those designs into reality— it involved much trial and error and research regarding the

technology required for green buildings.20

e. Completion of the Project and Management of the Project

It took about four and a half years for the completion of the building— which was just right on

time. It was finished in the third quarter of 2018, then formally opened in May 2019. During that

time, 65% of NEX Tower was already leased out.21 Since the building is a green building that has

19 Torres, J.A. 2019. NEX Tower’s humanist design makes good business sense. BluPrint. Retrieved from
https://bluprint.onemega.com/nex-tower-humanist-design-makes-good-business-sense
20 Torres, J.A. 2019. NEX Tower’s humanist design makes good business sense. BluPrint. Retrieved from
https://bluprint.onemega.com/nex-tower-humanist-design-makes-good-business-sense
21 Valentin. F.A.T. 2019. Nova Group completes NEX Tower in Makati. BusinessWorld. Retrieved from
https://www.bworldonline.com/nova-group-completes-nex-tower-in-makati/

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a massive live green wall and various plants beautifully featured in the office spaces,

maintenance work is done to ensure that it is kept in good condition. Usually once a month,

maintenance crew trims the trees and cleans the glass of the inner and outer parts of the building.
22

Since the completion of NEX Tower, it has been given an Urban Land Institute (ULI) Asia

Pacific Award for Excellence.23 It has also bagged LEED’s highest certification (Platinum) for

Green Buildings on the 18th of July 2009.24 NEX Tower has also been declared as a Special

Economic Zone on the 27th of May 2020. 25 NOVA Group has definitely built a successful

architectural landmark that has created the standard for sustainability and wellness.26

4. Make a thorough argument in favor of land use planning and development control,
explaining why these are necessary.

Land use planning and development control is a fundamental part of the process of growth and

development. Through this, various economic and non-economic activities such as agriculture,

industrial, commercial, and recreational are allocated to specific areas depending on the goals

and vision of the government. It sets the precedent for the long term objectives of the

government for the nation— from environmental conservation to increasing economic activities

through zoning classifications— to guide developers and landowners. For example, an industrial

22 Torres, J.A. 2019. NEX Tower’s humanist design makes good business sense. BluPrint. Retrieved from
https://bluprint.onemega.com/nex-tower-humanist-design-makes-good-business-sense
23 Maclang, A. 2019. Focus on NEX Tower. BusinessMirror. Retrieved from
https://businessmirror.com.ph/2019/07/17/focus-on-nex-tower/
24 “NEX Tower.” n.d. Green Building Information Gateway. Retrieved from http://www.gbig.org/activities/leed-
1000055591
25 Proclamation No. 950. 2020. Creating and Designating a Building and the Parcels of Land on Which it Stands,
Located at 6786 Ayala Avenue, Barangay San Lorenzo, Makati City, as a Special Economic Zone (Information
Technology Center), Pursuant to Republic Act No. 7916, as Amended by Republic Act No. 8748. Retrieved from
https://www.officialgazette.gov.ph/downloads/2020/05may/20200527-PROC-950-RRD.pdf
26 Reyes, R.R. 2019. Green building added to Makati skyline. BusinessMirror. Retrieved from
https://businessmirror.com.ph/2019/06/16/green-building-added-to-makati-skyline/

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building should not be permitted to be built in close proximity to the forest because industrial

wastes and activities will endanger the natural resources. The main purpose of land use and

development control is not to hinder development. Instead, its purpose is to ensure that the needs

of all the stakeholders are addressed— from the immediate community to the environment. This

spells the difference between effective urban planning and poor urban planning. 27

In the Philippine setting more land is being allocated for commercial and residential

development. This congestion of human activity in an area results in heavy traffic. Moreover, a

bulk of natural landscapes are increasingly being torn down to make way for developments that

can bring in more work opportunities and investments. Re-assessment of land use and

development controls can distribute development and other activities to other suitable sites.

Strictly following core objectives and strict implementation coupled with integration among

various sectors can ensure a more effective urban planning framework that satisfies the needs of

all stakeholders.

5. Make a thorough argument against land use planning and development control,
explaining why these are unnecessary.

Despite the advantages of land-use planning, it may hinder development due to specific zoning

classifications— for instance, some areas are unable to see development, especially those not

within or near the business districts or development hotspots. More often than not, land use and

land values tend to be highly influenced by Central Business Districts, especially in the

Philippines, where land use is geared towards what would benefit individuals rather than the

27 Thomas, D. Dr. 2001. The importance of development plans/land use policy for development control. Prepared
for the USAID/OAS Post-Georges Disaster Mitigation Project, Workshop for Building Inspectors. Oas.org.
Retrieved from http://www.oas.org/pgdm/document/BITC/papers/dthomas.htm

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entire community. On the other hand, land-use planning can become problematic when the

principles or framework used does not suit that goals and environment of the locality. For

example, Western planning models may not work in Eastern countries because of differences in

standards and way of doing things.28

When urban planning is done in a spur of a moment, without allocating enough time or necessary

resources, it may create more problems. One such problem that is prevalent due to poor land-use

planning is traffic or congestion. In the Philippines, this problem is clearly seen and experienced

by many living in Metro Manila. No amount of road widening will alleviate the traffic situation

because initial urban planning from years back was not properly researched on. In addition to

this, road widening only encourages more people to use cars and motorcycles— which further

causes more congestion. If the planning of roads in the Metro considered the well-being of the

community from the beginning and incorporated bigger, safer sidewalks and bicycle lanes, more

people would be encouraged to walk and ride bicycles.

28 Corpuz, A. 2012. Land Use Policy Impacts on Human Development in the Philippines. HDN Discussion Paper
Series PHDR Issue 2012/2013 No. 1 Human Development Network, pp. 6-7. School of Economics, Diliman,
Quezon City.

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