How amenities can affect your property value
Updated: Jun 3, 2022
We all want our property value to increase over time. In fact, savvy investors often search for properties with nearby upcoming government transformations, as the potential capital appreciation for these areas is much higher. However, upcoming transformations aren’t the only thing affecting property values. In fact, the most critical factor affecting your property value is actually the surrounding amenities.
Amenities include things such as good schools, nearby MRT stations, shopping malls around the area, any parks and recreation areas, and so on. These are extremely important factors to consider when purchasing a property, as they can cause a significant price difference. For example, integrated developments (with a shopping mall, MRT, bus interchange) often fetch a much higher price than condominiums alone, simply because of the added convenience and accessibility.
This effect of amenities on capital appreciation can be seen in various projects throughout the years. As an example, let’s look at Waterbank At Dakota and Vacanza @ East, 2 projects both located in District 14 (Eunos/Geylang/Paya Lebar), and launched in 2010. Waterbank At Dakota is a 2 min walk from Dakota MRT, but Vacanza @ East is at least a 13 min walk from Kembangan MRT.
Waterbank At Dakota went from $1,092 psf at new launch (2010) to $1,660 psf in 2020, an increase of $568 psf! Unfortunately, for Vacanza @ East investors, prices went from $1,107.06 psf at launch stage (2010) to $1,186.20 psf, an increase of only $79.14 psf. Furthermore, Vacanza @ East is a freehold property, which should have increased its value compared to Waterbank At Dakota (99 years leasehold). Yet, due to the distance from MRT and amenities, Waterbank At Dakota is doing much better.
Nearby amenities, especially amenities such as MRTs, retail malls, and so on, do play a huge part in determining the future value and capital appreciation of your property. If you’re looking for a property to invest in, but aren’t sure which properties will appreciate more, Bridges Property Singapore is here to help! Drop us a message or a call, we’d love to hear from you, and get you started on your property investment journey.