Improving Land Administration and Management for Sustainable Urban Development : Philippines Urbanization Review Policy Notes

This policy note assesses the performance of existing land administration and management (LAM) system in the Philippines in creating an environment for competitive cities. It looks at the influence of LAM (including property rights) in the proper functioning of land markets in urban areas; the effectiveness of land use planning and regulations in shaping urban growth, reducing informality, and improving efficiency in use of space; and the impacts of property valuation and taxation practices in generating revenues to finance local development plans. LAM systems are a fundamental infrastructure for proper functioning of land markets. Well-functioning land markets facilitate investments and growth, improve land allocation, and develop financial markets. For land markets to work efficiently, they must be underpinned by land administration systems that define property rights; guarantee security of tenure; establish a mechanism for registering these rights within reasonable time and costs, and generate information to support property valuation and taxation. Well-defined property rights underpin security of transactions and investments in well-functioning land markets, as these reduce conflicts, decrease transaction costs, and provide incentives for the private sector to invest. Property valuation facilitates efficient disposal and proper compensation of land, equitable land and property taxation, and proper valuation of land as collateral assets. In addition, LAM systems are essential in land use planning that shapes urban growth, improves efficiencies in use and allocation of limited space, and in turn, enhances the performance of land markets. In metropolitan areas, coordinated land use planning is essential to achieve efficiency in service provision, enable connectivity and maximize the potential of agglomeration for city competitiveness. Effective land use planning enables timely provision of investments to influence the shape and pattern of land development. Well-functioning land market and efficient land use are important in creating sustainable and competitive cities