Property is defined as anything that can be owned. It can be physical like a house and lot, real estate property, cars, condominiums, residential properties, commercial properties, or intellectual such as books and computers. Property ownership can typically be transferred, sold, or shared. As a result, the property serves as the foundation for many economic transactions. Getting on the housing ladder, putting money in a savings account, or buying a kitten for your partner are all economic events that rely on the assumption that houses, money, and cats are all property that can be owned.
Focusing on the real estate industry properties there are a lot of factors that might affect the increase of its value. The price of land in the Philippines per square meter will, of course, vary depending on where you live and whether it is urban, suburban, or agricultural.
The Price of Land in the Philippines per Square Meter for Urban Residential Properties or Commercial Land:
- For commercial buildings would have been around 10,000 Php per sqm;
- For suburban residential properties or commercial properties, the price would be between 2,500 and 3,500 Php per sqm; and
- For agricultural land, the price would be less than 1,000 Php per sqm and would decrease as you moved further away from towns and access became more difficult.
Contacting a Professional Real Estate Developer or Trusted Real Estate Property Developers Would Be Good When Looking for a Perfect Lot.
With that being said the number one factor that makes a property increase in value is location. According to Benson, the value of a home does not increase over time. In fact, the physical characteristics of a home depreciate over time. The property itself grows in value. This is why location is so important. And a variety of factors influence whether the location helps or hurts property values. Community improvement is the number one on the list that makes a location expensive, as the community improves, new residential developments are established, new residential projects are on the way, successful projects are existing, high rise condo buildings are built.
The most known improved community is BGC or the Bonifacio global city in Metro Manila primarily in between Taguig and Makati city, trusted developers in the real estate industry in the Philippines are called to build this tremendous property.
Up until now, Bonifacio Global City is still improving its community as they have ongoing projects, new shopping malls, shopping centers, new projects, and other buildings that will make the city great. Property developers are on the move to make this city a great living society for everyone.
Factors That Make a Property Increase in Value
Real Estate Comps
As the selling prices of a similar house and lots in your neighborhood, known as real estate comps, rise, so does the value of your home. Real estate comps are real estate assets in your neighborhood that are similar to your home in regards to age, square footage, materials, features, and condition. Comps are utilised by appraisers real estate developers and agents to assess property value or listing price. When price wars occur in a community, residential developments sell for premium rates than similar homes’ previous selling prices. If bidding wars continue, sellers will be able to sell their housing at increased prices and attain even higher sale prices.
New Real Estate Development
As the community continues to develop new projects are also made, and real estate property developers in the Philippines are looking for opportunities where they can build housing developments and notable projects. With these new developments, existing properties like condominium units and other buildings have a chance to increase their price.
Establishments Around
Things to consider when buying a property is to check its convenience of it. If the property is surrounded by good establishments where you can shop or tour around like Rockwell Center, One Shangri La Place, shopping malls, SM Prime, and Forbes Town Center it is sure that the price of the property is high because it offers convenience to the people.
Office buildings and other commercial properties where you can work are also one reason for an increased cost in the property.
Property developers tend to place real estate properties with this kind of location to make the value of the property high.
Supply and Demand
The push and pull of demand and supply have a significant impact on property value. If there is a large market but a limited supply, property prices will rise as more people try to buy. Large existing structures can be divided into smaller units to increase supply or entirely new properties can be built. Prices will begin to fall when supply exceeds demand.
Upgrades and Updates
Best property developers know the importance of upgrades, updates, and home improvements as they can greatly increase the value of a property, particularly if it is an older property with outdated features. Renovations to the kitchen and bathrooms are among the improvements that may have the greatest impact on the home’s value. You might also think about adding to the number of beds. The ‘curb appeal’ or outer appearance of a property is another important factor that influences its value. Gardening can increase the value of your home by up to 20%. The increase of a property because of updates can be also consulted by a property developer.
Economic Factors
The economic situation of a region will influence people’s ability to sell or buy an investment property. The number of jobs and people will make more money when the economy is doing well. Individuals are more likely to purchase a new home or a second home as their purchasing power grows. Property prices will eventually rise due to increased demand. On the contrary, side, if unemployment rises and wages fall, relatively few people will just be able to purchase a home.
As a result, property prices will fall as well. It is therefore critical to stay current with market conditions before setting a price for residential properties.
Interest Rates
One of the most important factors influencing property value is the number of interest rates. If the Banking System decides to raise interest rates on loans, lenders will do the same. Debtors will have to make a higher mortgage payment each month as a result of this. Highly-priced mortgage loans mean that assets will sell for even more money. A decrease in interest rates, on the other hand, implies that property will become relatively cheap.
These are just some of the factors that make a property increase in price. Real estate is one of the properties we need, checking up for house and lot for sale and condo for sale around your area where it offers convenience and great satisfaction to you would be a great move and foundation for you. Checking property developers online would help you understand more about real estate.
