6 Factors That Can Increase Your Property’s Value

Top tips for improving your property value|How to Improve your property Value
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How to Improve your property Value
Improve Property Value

When buying a property either for investing or staying, there are a number of key factors that can affect the value of your property in the long run. This is especially important in Singapore where land is scarce and property prices can increase exponentially over the years. So other than watching out for a suitable buying price, the aesthetics of a property as well as personal preferences, here’s a list of 7 other factors you should keep in mind if you want to ensure that your property’s value will head north instead of south after your acquisition.

1) Location

Location is perhaps one of those factors that can severely affect your property value. This is obvious if you compare a same-sized apartment in far-off Sengkang and one near to the Central Business District or Orchard Road. If you are buying the property as an investment and are looking to earn rental income, location should be one of the top factors that you need to consider as tenants would often look out for a convenient location where they can easily get to work.

Other than proximity to town, location can also mean how easy it is for someone to access public transportation from the apartment. Since it is well-known that buying a car here is one of the most expensive in the world, a home situated near to public transportation is much sought-after. In fact, if your home is near to an MRT station (or a future MRT station), you can expect it to be higher in value compared to one that is not in walking distance.

2) Town Plan

For the savvy property-buyers out there, a consultation of the Urban Redevelopment Authority’s Master Plan is a must before making any property purchases. The Master Plan is a useful guide that you can refer to that tells you about the government’s town planning ambitions. For instance, just a few years back, the government had announced its plans to develop commercial centres in Jurong, which eventually saw property developers flocking to the area to build up new homes, as well as stimulating the growth of value in nearby properties. On the other hand, if the plans include building of factories or a crematorium, you can expect that nearby home value will be adversely affected.

3) View/Direction from The Property

Putting the believers of Feng-shui aside, there can be some practical concerns with regards to where your apartment is facing. One of the most important consideration is whether your entire house will be warmed up by the morning or evening sun. Most people try to avoid a place that will come under the direct glare of the sun.

Another reason your property may sell better is that it has a better “view” compared to another. To put this simply, would you rather wake up to the window view of the calm, blue sea or peering into the kitchen of your neighbour? Prices of transacted properties there have proved that the view does matter. It is also for this reason that properties that are higher up the building usually command a higher price.

As a general rule, an unblocked view or view of the sea can demand a better price compared to one that looks into someone else’s room.

4) Nearby Transactions

Recent transacted prices of nearby properties in your neighbourhood are often used as a price guide to valuing your property’s worth. This is because price is simply put, an indication of current market conditions and reflects the demand for the property. Just make sure that you are comparing between properties of similar size, age and whether the property is leasehold or freehold.

5) Economic Conditions

Sometimes, property value is affected by larger market conditions beyond one’s control. This can be the general economic outlook, a country’s growth forecast or certain regulations implemented to either restrict or boost the property market.

As one can already see from the real-life example of Singapore’s property cooling measures implemented in 2013, property prices in Singapore have generally taken a tumble in the last 2 to 3 years. However, if your country is facing a great growth outlook, perhaps such as those in Myanmar or other emerging countries experiencing fast-growth, then it could greatly boost your property’s value in the long run.

6) Design of The Property

Other than the interior design of the property itself, factors such as whether it is a dual-key apartment can also affect the property price.

A dual key condo is one single apartment that can be divided into two separate but adjoined apartments, allowing both ‘apartments’ to have its own separate keys and are equipped with their own kitchens and bathrooms. While the concept is born out of serving the needs of inter-generational families and still allowing adequate privacy for each side, it was quickly picked up as a potential income-generating investment as you can easily rent out one part of the apartment and still live in the other. In such cases, dual-key concept apartments may be able to ask for a better price compared to a normal apartment.

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