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Factors that affect value of : - Coggle Diagram

- - - - A high-quality roadway will prevent accidents and assure road safety. Furthermore, inhabitants can readily access the business sector through a high-quality road, thereby increasing the commercial property's value. Hence, improved roadway conditions will increase commercial property value.
    - - As the property became older, its general look and desirability diminished, and its repair and maintenance costs rose. These factors will lessen the market for older commercial properties, hence decreasing their value.
    - - Properties that have aviation purposes will fall in value if the distance to the airport facility is far. This is due to a decrement of the trade value.
    - - A signalized corner lot is a parcel of land positioned at the intersection of two roadways. As a result of having two frontage sides with signalized corner lot, the property's value improves when many people are aware of its presence.
    - - A flood causes people to lose property especially when the flood has became a global concern. Hence, the research needs to be carried out at the location that has risk of flood. If it is within the flood zone, it is most likely that the value of property decreases due to the possibility of the flood may occur at any time.
    - - The value of the commercial real estate is likely to rise in tandem with that of individual household income. When the household's purchasing power is high, it can acquire its intended products.
    - - May be a weak factor in affecting the commercial value because of less observation in order to prove a strong relationship between energy efficiency can impact on its value.
    - - When the mobility of commercial property to a transportation station improves, the demand for commercial property and the value of the commercial property will increase.
    - - The duration of time set by the seller plays a role which can be portrayed such that the seller lower the price of the property to speed up the process. This is because the seller wants to shorten the mortgage liability. However, the consideration and compromises of the buyer can lead to longer buying time which likely lead to higher price of the property.
    - - If the neighborhood's communal facilities are in excellent condition and easily accessible, the commercial property's value will rise.
    - - The advanced in technology create convenience to buy something with a single click but it causes retails stores to be vacant. This lead to declining in demand for the retails store, hence reducing the value.
    - - This factor impacts particular commercial properties that are retail establishments rather than office properties because when traffic increases, the accessibility of the commercial premises increases.
    - - A good design and quality of properties attract buyers more especially when the design is inclusive with the connectivity and building distinctiveness. It will create higher level of amenity that can lead to increment on the utility of the user. Higher quality also means that lower maintenance. Thus making the rental and market price to increase as well as price of commercial property.
  - - - Inflation, demand, and supply, have a significant positive relationship with the return on commercial capital of the property, because when inflation occurs, the price of the property tends to increase due to high demand while the supply of the property is low, resulting in a higher return on capital of the commercial property.
    - - Public policy enhances accessibility to certain
        amenities of public transport. The closer and reachable the public transport in a certain area, the higher the commercial property value
    - - The location is very important because if the place is a packed with high density of employed residents, the value of the property will increase
    - - Value of commercial properties increases when new residential properties are built nearby , if residential area convert to industrial area, then the value of commercial property decrease as potential buyers are lost
    - - The change in tax rate will increase rent paid by tenant and lower rent received by landlord which is why the value drops
    - - if a commercial property located near public land use, such as university, hospital and police station, the value of a
        commercial property would increase.
- - - - The price of building materials such as cement and steel as well as import taxes on marble and tiles have a direct impact on the cost of a structure. The price of labour also rises due to labour supply deficit, higher pay or permit cost which lead to hike in construction cost. This causes developers to increase the cost of new developments which in return raises the cost of resale real estate.
    - - The feature of the property also influence its worth such that a four-bedroom house is likely to be sold faster that two-bedroom house. Having features such as swimming pool, outdoor entertaining areas, garage and office space will make the value of property go higher
    - - The secondary market property tend to expose to structural flaws which caused by poor internal maintenance such as leaky taps or mouldy walls.
    - - Most high-rise properties is cheaper than landed house. Even though it is good for investment but the appreciation rate is slower in the long term whilst landed house is pricey but it is included the piece of land. It also produce better appreciation rate and higher resale value in the long run
    - - The value of property is proximity to its surrounding. Having developed infrastructure nearby such as flyover, roads, airport, shopping mall, educational institutions would favour a better return on investment in the future as it impacts client's decision to own real estate. As a result, many developers will starting opulent residential projects in areas with great infrastructure.
  - - - When determining a property's worth, it's critical to take into account broader economic conditions.
      - A weak economy or economic unpredictability diminishes demand in the real estate market, which drives down house prices.
      - More factors than merely the physical characteristics of a property have an influence on its value.
    - - Loan accessibility - Bank Negara's lending standards for banks may have an impact on a buyer's eligibility for loans as well as the volume of loans. Recent examples include eligibility based on the borrower's nett income rather than gross income and the 70 percent cap (maximum margin) on third mortgages. The real estate market is cooled by these actions.
      - Base Lending Rate (BLR), which is the reference interest rate used by all banks when making loans, is also subject to change and is set by Bank Negara.
      - Money supply is the entire amount of money in an economy, including bank deposits as well as currency held by the general people. More money available for lending to buyers the more money there is in the economy and the banks.
    - - Regeneration of the area - YTL's regeneration initiatives in Sentul, for instance, revitalised the entire region that was previously unattractive.
      - Zoning and rezoning of land uses — for instance, when Section 13 of Petaling Jaya was rezoned from industrial use to building/commercial use, property value in this site skyrocketed.
      - Strategic unoccupied land is become harder to find in metropolitan locations, notably in the Klang Valley. Due to land scarcity and expanding housing and population demands, land prices are rising. State governments have the power to lease new land to the private sector for construction.
      - Property taxes: Property investors and speculators react to changes in Real Property Gain Tax (RPGT) by choosing to enter or depart the market, frequently in large numbers, which has an impact on property price
    - - Property orientation: Properties facing unpleasant locations, such as the sweltering evening sun, traffic lights, high-tension wires, or cemeteries, are often less desired and worth less money.
      - Properties facing breathtaking vistas, particularly from higher levels, or renowned landmarks like the KLCC Twin Towers, attract greater rates whether they are new or old.
      - The reputation and value of the property are impacted by the standard and quality of building management, which may make or break the quality of maintenance and housekeeping of the property.
      - Some houses are desirable because of unique features like an infinity pool, many parking spaces, or a free feeder bus to LRT/MRT stations.
      - Setia Eco-Park and Desa Park City are two lifestyle projects that appeal to the typically wealthy and discriminating purchasers that appreciate a particular notion of living.
      - Due to the widely varying interests of different owners, some refurbished resale properties have quality or taste in their renovations, finishing, and landscaping that is very essential. Some owners have enchanted or amazing tastes, while others are repulsive.
    - - Easy access to highways/infrastructure. The roadways must be easily accessible.
        It is handy to have access to Mass Rapid Transit (MRT) and Light Rail Transit (LRT) stations within 20 minutes of walking distance, but not too close so as to cause parking problems, excessive noise, or an increase in petty crime