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Factors affecting residential and commercial property value - Coggle…

- - - - There is an c number of densities in the location of commercial property due to the worker who works in the area.
    - - Commercial property near public land use, such as Hospitals, Universities and Police Station, can ⬆ the value of the property.
      - Density of labor and residents in an area ⬆, commercial property will benefit from many potential customers and potential employess.
    - - the intervention of public policy enhances accessibility to certain amenities of public transport.
      - Supply restriction
        
        eg: if the development of commercial property close to the railway system
    - - Value of commercial property may be changed due to building of new residential surrounding it
        
        ⬆Number of neighborhood residents affect the ⬆rate of visitors to commercial properties
      - Has :heavy_plus_sign:or :heavy_minus_sign: impact to commercial properties if convert the existing properties to alternative uses
        
        :heavy_plus_sign:: Conversion of industrial property :arrow_right:residential property (There will be more buyers, commercial property price :arrow_up:
        
        :heavy_minus_sign: Conversion of residential property :arrow_right: industrial property at the end of lease term (Value of commercial property :arrow_down: as losing the buyers)
    - - The ⬆ property prices, it facilitates the expansion of bank lending to real estate sector
        
        BUT, it can ⬆ the impact of bank credit and will have an indirect impact in the future due to oversupply.
      - An ⬆ in rent and property can give good impact to market
      - Business that operates in commercial property
        
        Make an exception to pay tax by lowering the cost of customer's output prices.
        
        Also, pay lower salary to the worker & pay a low rent to the landlord
      - When inflation occurs
        
        The price of property ⬆ due to ⬆ demand
        
        Meanwhile, the supply of the property is low, which results in a ⬆ return on capital of the Commercial property.
      - Main factor contributes to the
        determination of the price of commercial property.
    - - Determinant mentioned by Stephen Bond, Kevin Danny, John Hall and William McCluskey in the article
        
        These authors argued about gap between 'demand value' and 'offer price' charged by owner of property
        
        tend to change due to market demand and supply
        
        Tax change reflected in the change of property price
        
        eg: :arrow_up: rent paid by tenant, :arrow_down:rent received by the landlord
- - - - Definition: Any person who owns or rents real estate that they utilise as their own home or place of habitation.
      - Residential area are used for home living for a single family
      - Not use the application for holding, developing, or any other business or commercial reasons if there isn't a consistent physical presence at the site.
        
        Consequences:
        However, there are some of the house owner turns their property into business purposes which downgrade/upgrade the market value of residential property
    - - The physical aspect involves the interior design that affect the homeowners such as temperatures, humidity, ventilation and many more.
      - Factors that influence Physical aspect of residential property
        
        Building form
        
        Orientation
        
        Exposed surface to volume ratio
        
        Types and size of glazing areas
        
        Shading
        
        Thermal mass and airtightness
      - Due to the urban heat island effect, where outdoor temperatures in cities are already higher than those in their rural environs, the issue will be more pronounced there.
        
        This will affect the property value depends on the feature applied on the house
    - - Accomodation gives a living or space for people to live
      - Explanation:
        There also other services for accommodation such as hotels, airnb and others rental accommodation. This will affect the market value of residential as people tend to rent instead buying the house itself
        
        Evidence:
        From the previous research, these services have cause the value of residential property decrease due to lack of buyers in the urban area due to the citizen mostly temporary homeowners
    - - Depends on the supply and demand of the housing estate by the citizen which it varies the design of the project
      - Important factor in choosing material and finishing
        
        Type of Structure
        
        Performance Requirements
        
        Cost- Effectiveness
        
        Building Materials Availability
        
        Climate
        
        Aesthetic Reasons
        
        Environmental Reasons
      - Building sector, since the quality of the structure is greatly influenced by the materials employed. Your choice of building materials will affect the structure's overall durability, strength, and attractiveness.
        
        Consequences:
        So the market value will increase or decrease depending on the material used. If more expensive the material that will be used, increasing in property value
    - - Age and distribution of population - adults (25-45 y/o) buy homes
      - Income level and income growth of population -average determines purchasing power of the people in the area
      - Consumer behaviour of the population -fabulous lifestyle concept homes
      - Size of population and its growth (rural-to-urban migration) -property demand go ⬆, price ⬆
    - - People would rather buy an old house that is well maintained than a new one that needs major renovation
- - - - :arrow_up: of age of commercial properties, value :arrow_down:
        
        FACTOR
        
        :arrow_up: cost of maintenance
        
        attractiveness, appearance :-1::skin-tone-4:
    - - Connectivity & building uniqueness
      - Quality of materials used
        
        :arrow_up: quality, :arrow_up: high level of sevices
        
        :arrow_up: capacity, efficiency :arrow_up:
      - Buyers willing to purchase higher quality products
        
        :arrow_down:cost of repair/maintenance
    - - Weak relationship bet. energy perf. & property value :frowning_face:
      - BUT, it will be major factor, bcs....
        
        It will give benefits :+1:
        
        :arrow_down: operating cost
        
        Exp: Solar panel
        
        :arrow_down: electricity bills
        
        Investor will benefits from reduced holding cost
        
        energy efficiency :arrow_up:, vacancy rate :arrow_down:, retention of tenant :arrow_up:
    - - E-commerce
        
        :arrow_down: demand for retail stores
        
        Because, everything can be bought online
        
        :arrow_down:lower sales volume, :arrow_down: profits, greater competition, :arrow_up: vacancy in commercial properties
        
        Value of commercial properties :arrow_down: :frowning_face:
    - - Geographical location of the residential property
      - Good access in the neighborhood, commercial value :arrow_up:
      - Residential property provide :ambulance:, :school: etc
        
        Visit to the commercial property :arrow_up:, value :arrow_up:
    - - Accessibility:
        
        commercial property :arrow_right: transport station
        
        cost of transport
      - Value of commercial :arrow_up:
        
        Good quality of railway station
        
        shorter travel time
        
        reduce travel costs
        
        adequate transport facilities, amount of investors in commercial :arrow_up:
- - - - The national housing policy in Malaysia have gone through a lot of strategies and program as stated in the national development program which is reviewed every 5 years.
      - EXAMPLE OF REGULATION POLICY
        
        Land cost and 50% of the infrastructure
        
        costs are borne by the Federal Government in the form of grants but priority will be given to land that is available by the stated government. the Federal government will bear the full cost of the building construction and 50% of the infrastructure cost by using the Low- Cost Housing Revolving Fund
        
        ILCHP for ownership (New Policy)
      - Objective of Housing Policy
        
        Guidelines for location of new housing
        
        Fulfilling the housing needs for special hroups
        
        Getting optimum usage out of existing housing resources
        
        Ensuring sufficient housing for all households
    - - Have mass rapid transit (MRT) and light rail transit (LRT)
      - Conventional public transport such as taxi, and buss stop
      - Easy access to highways or infrastructure
    - - When the economy slows, the housing market can suffer. Economic slowdowns have an impact on home markets because housing-related activity diminishes and broader economic demand slows. The economic cycle breaks down when economic reforms begin and home prices reflect consumer willingness to pay.
      - Finance includes debts, credits, banking, assets and liabilities. Many economists break finance down into personal, corporate and public.
    - - According to NAPIC’s statement, the residential overhang situation saw volume rising 24.7% to 37,000 units worth a total of RM22.79 billion — up 20.5% from the year before.
      - Most industry experts forecast that the 2022 property market will be tough and turbulent owing to a number of factors.
    - - Supply is inelastic to demand. Supply cannot keep up to demand when rising demands and demand cools down after some time which cause over-supply. Property price becomes volatile.
    - - Different properties caters to different people's taste such as housing areas with green trees around or urban areas.