Generally, sellers want to sell their house at a higher price while buyers want to buy at a lower price, but do you know what will affect your landed property value in Singapore? How do you decide how much your landed property value?
Many factors will affect your landed property value. Government policies, land supply, new property launches, and the economic growth rate will affect the landed property value, but will there be any other factors besides this?
We will discuss the factors that affect your landed property value in this article, and if you are thinking of investing in one, you will want to read this article.
What Is Landed Property Value?
A valuation is an estimation of how much your property is worth. It plays a crucial part during a property transaction.
There are two types of property valuations. The first one is indicative valuations. It is a simple estimation of the value of a property. The property owner will do their observation and research and conduct these valuations. There are free online valuation tools that homeowners can use. They can also analyze historical transaction data of the property.
Another way is actual valuations. This method is much more detailed and will be performed by qualified surveyors and property valuers. They will be based on a series of quantifiable metrics of the property’s market to value it.
Factors That Affects Your Landed Property Value
Landed Property Value 1: Locations
Location is the main factor that will affect your landed property value. When buying properties, buyers normally will consider the location that is more convenient to them. They may prefer properties within walking distance to MRT stations.
If they have kids or planning to have one, they will want to stay near “branded” schools. Priority admission will be given to those that live within 1 to 2km of the school. Landed property around “branded” schools will be in demand. Areas with major amenities are also more popular and in demand.
Sometimes, government projects will cause an increase in landed property value. For example, Jurong houses numerous flatted factories and power plants. The air was considered unhealthy.
Residents expected the property value to increase when the URA announced plans to transform the Jurong Lake District into a Central Business District in 2008.
Landed Property Value 2: Economic & Income Growth
The country’s economy will determine the direction of the property market, at least in the near term. Any adverse economic or major economy will inevitably affect Singapore.
Economic growth will affect the country’s income growth and unemployment state. This will affect the landed property value.
Property can be a luxury item. When it comes to buying property, it depends on the people’s income. As the economic growth rises, there will be a possible increase in people’s salaries. They will have extra income to spend on housing.
If the economic growth is in an adverse state, companies will wind up, and people will lose their job. As unemployment rise, fewer people can afford to buy properties.
Landed Property Value 3: Home Improvements
If you want to increase your landed property value, home improvements are a good way. Home improvement includes updating kitchens, adding landscaping, and replacing flooring. But make sure that you don’t overspend. Doing too much won’t add value to your landed property.
The kitchen is the heart of the home as people tend to gravitate towards the kitchen during a party. A kitchen remodels is the best way to add your landed property value. If you do it correctly, you will get your investment back.
Another home improvement to increase your landed property value will be updating your bathroom. A master bedroom with a spacious shower and plenty of square footage are what buyer likes. Ceramic tiles will be the preferred choice as they handle water better. Maintain the design as the rest of your house.
Landed Property Value 4: Government Policy
A good government policy can be effective in balancing the property markets. One good example is encouraging to purchase public housing with HDB Housing Grants for subsidized flats.
The Total Debt Servicing Ratio (TDSR) framework, Additional Buyer’s Stamp Duty (ABSd), to maintain the Singapore property market to a manageable demand and pricing levels. It will help control the increased supply of public and private housing and sales activity in Singapore’s residential property market.
The GLS program helps regulate the supply of sites and maintain the landed property value.
Landed Property Value 5: Interest Rates
Bank interest rates are one reason that affects your landed property value. When interest rates are low, people are more confident in taking a loan as borrowing becomes cheaper. Buying a property will be more attractive when monthly installments are more affordable. With more buyers, your landed property value will increase as there is more demand.
If the interest rates go up, people may not afford the monthly installment. Buying property will be less attractive, and there will be fewer buyers. Your landed property value will be lower.
So the next time you are considering buying a landed property for investment, you will want to consider all these factors that will affect your landed property value.
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