Filipinos, both at home and abroad, could soon acquire government properties as small as a 200-square-meter lot, as the guidelines for privatization are set to be published, allowing anyone interested to submit purchase offers.
Speaking to reporters, Department of Finance (DOF) Secretary Ralph G. Recto announced that the government will soon provide the list of possible assets available for public auction.
Finance Undersecretary Catherine L. Fong said that the government is set to publish the long-awaited guidelines on the privatization disposition of government assets, which would allow unsolicited offers on over 28,000 small assets, primarily targeting Filipinos—including Overseas Filipino Workers (OFWs).
According to Fong, the government finds it too resource-intensive to market such small properties, especially since it lacks a dedicated marketing arm. To address this concern, Fong explained that the government would simply publish the list instead, and “anyone interested, including informal settlers, can make an offer to purchase the land.”
“Offers will be published, so they can still be challenged, similar to the process in public-private partnerships (PPP). Most of these assets are located in the provinces, and we aim to enable Filipinos to purchase their own home properties,” Fong noted.
The publication of the guidelines has been delayed by a month despite its approval in September last year. The guidelines will take effect 15 days after the publication.
When asked about the major changes in the guidelines, Fong said it introduces flexibility, allowing the Privatization Council to approve prices below the zonal value in government-to-government transactions. Previously, such flexibility was not allowed, ensuring a more adaptable approach to these deals.
Fong noted that the state-run Land Bank of the Philippines (Landbank) is also interested in participating. “They want to have a firesale of their repossessed assets, as there are a lot of government assets that are too small.”
“The idea is to just post the database online and anybody can bid,” Fon said, adding that interested bidders only need to write a letter stating their offer. She emphasized that there will be guidelines, noting that the Bangko Sentral ng Pilipinas (BSP) and Landbank have already been conducting these kinds of auctions.
Likewise, Fong reiterated that the government’s goal is to increase its revenues and reduce its expenses on maintaining non-performing assets.
One of the major assets planned to be auctioned off is Star City, but the challenge lies in its connection to Sukuk bonds, Fong said. She explained that the government has to balance the needs of the national treasury because replacing assets tied to Sukuk bonds is not straightforward. There must be a lease arrangement, not just any property.”
According to the undersecretary, Star City—valued at P15 billion—fits this requirement because it has a lease. “If we were to replace it, the substitute might lack a lease, which complicates the process.”
Last month, Dec. 29, 2024, the DOF reported earning P4.44 billion from the sale and lease of government assets, along with dividends, raising its non-tax revenues to a record P555.3 billion for 2024.