What Affects the Value of your Property?
Properties in Singapore rank among the highest in the world, and often do we see huge fluctuations in the property market. There are many other factors that can affect a property’s value, some dealing with the property itself, and some relating to the environment. This article details out 5 of the main external factors that can drastically affect property value.
- Access to Public Transportation
This point applies very strongly to Singapore due to the outrageously high car prices here. It hence makes sense especially so in Singapore to rely on our public transportation systems for the daily commute.
One can easily expect their property prices to increase as they place closer to big MRT lines and bus interchanges. This effect has recently seen a slightly smaller effect due to the influx of newer MRT lines.
A small downside comes with being near public transportation systems though, and that is the noise level. Situating close to a public transportation system comes with the added road buzz and expectations of way higher noise levels, a feature that is immensely undesirable to some.
- Value of Neighbouring Properties
Well it comes with no surprise that the closest market indication is a property that is close by. It is hence important to understand the transaction properties of similar projects in the neighbourhood, give and take.
This is by far the most important factor of property pricing. In general, properties located near to the Central Business Districts or prime shopping centres are worth a way heftier price tag, while those closer to the outskirts tend to be priced a tad lower. The disparity here could set prices of properties near Orchard road almost 5 times the price of those situated further out.
- Nearby Amenities
While on the topic of location, what surrounds the location usually affects property price quite significantly. It is the convenience that people are willing to pay for, and everyone just seems to be addicted to it. Amenities such as ready access to grocery stores, a park, food nearby or shopping centres could inflate prices quite significantly.
Conversely, being close to a crematorium or industrial properties tend to adversely affect the prices negatively. A good way for home buyers to review this is to look at the Urban Redevelopment Authority’s Master Plan as a guide to forecasting the value of properties.
One of the more often overlooked factors is that of the apartment layout. This often has to do with the location of windows or balconies that could permit more or less sunlight inside the house, which could drastically affect internal temperature or create undesirable reflections on reflective displays. So do take note on how the sun could be facing the next time you are looking at a property.