factors that affect home value

7 Important Factors That Affect a Property’s Value

By: Guyub
23rd Dec 2021
Buy & Sell

A property’s market value is important, whether you are a seller or buyer.

It is an estimate of how much your property would sell for at a given point in time while taking into consideration factors like the property’s features and benefits.

And as a seller, it will help you maximise your profits when you sell the property without causing your buyer difficulty in getting a loan, or worse still, turn off your buyers!

However, what exactly are the factors that affect the value of a property? Read on to find out so you can take the best steps to ensure the most profits when you sell the property!

  1. Economic Factors
  2. Location
  3. Property
  4. Property Age & Condition
  5. Renovation & Upgrades
  6. Demographics
  7. Local Market

1. Economic Factors

The current condition of the economy does influence your property value to a certain degree. When the economy is doing well, where jobs are plentiful and more people are employed with higher salaries, the demand will increase which also means that your property value will go up, especially if in a prime area.

Also, if interest rates are low, demand will go up for property as people would want to take advantage of less burdensome costs. And as more buyers enter the market, a shortage of housing will lead to an increase in the value of the property as well.

2. Location

Location is the main factor that determines the value of your property. Prime factors that influence your property value include:

  • Amenities available close by, eg: malls, eateries, entertainment, retail & recreational parks
  • Educational institutions (universities and schools) within convenient travelling distance
  • Proximity to offices, central business districts and city centre
  • Ease of accessibility via major highways, LRT & other forms of public transport

3. Property

The size of your home also has a role to play in determining the value of your property. Naturally, a home with a bigger square footage of liveable space would have a higher valuation compared to a smaller home within the same area.

Plus, its land title – freehold or leasehold – will also impact its value, especially in the longer run, where the value of leasehold properties will depreciate over time.

Not only that, the extent of amenities offered within the property does to a certain degree impact its value as well.

4. Property Age & Condition

The older the property, the higher the likelihood that more repairs would be required from the wear and tear and general deterioration over time, especially in things such as the plumbing and electrical wiring. This, again, would affect the value of your property.

That is why it is crucial that you ensure that your property is checked regularly and well maintained, as it will help improve the value of your home.

5. Renovation & Upgrades

Renovation works or upgrades that increase the livability and aesthetics of the home will help increase the value of your home. This however is provided that it is done well and strategically.

  • Some of these include:
  • Flooring & plaster ceilings
  • Extensions to the home (that is not illegal)
  • Built-in kitchen cabinet and wardrobes
  • Kitchen renovations & updates (this is one of the most profitable factors)
  • Minor upgrades to paint and fixtures

6. Demographics

The size of the population in the area, as well as the age group, may also impact the value of your home. In an area where more younger working professionals live, smaller high rise residences may have a higher value. However, if the area is within the suburbs where more families live, a bigger landed property would have better value.

Plus, sometimes, ethnicity and cultural belief does come into play. In a neighbourhood with a high Chinese population, a property with the number “4” may be perceived as not as auspicious as it sounds like “death” in Chinese – which may affect the desirability of the home.

7. Local Market

Is it now a buyer’s market or a seller’s market? You may have the best-maintained property in the neighbourhood, but if there is a large number of similar properties to yours within the same area the value of your property will also be affected.

It all really depends on supply and demand – if the property in your area is preferred by buyers, the value of your property will increase.


Looking to evaluate the market value of your home? Or thinking about selling your property? Come to GUYUB, where you will find all the information you need, a thriving space to list your property and a selection of professionals to meet your needs! Click here to discover more.

The statement and information in the articles are the opinion of the writer and meant only as a guide. Any property purchase, rental or lease involve many legal issues and other complication depending on the individual facts and circumstances. Readers and Users are strongly advised to seek professional advise including from qualified and competent lawyers, bankers and/or real estate agent to verify the information and the statement before embarking on any purchase, rent or lease of any property. To the fullest extent permitted by law, we exclude and disclaim liability for any losses and damages of whatever nature and howsoever cause and arising including without limitation, any direct, indirect, general, special, punitive, incidental or consequential.

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