Importance of Location & Layout
After looking at how we use pricing to select undervalue properties, we will now look at two very important aspect of the Property P.L.U.S System. For the second “L”, we will study the definition of a good property that is in a good location and a good layout.
As people used to say, property is about location, location, location. But Singapore been a small country with limited space, the use of liveable space is super important and to maximise our value, we want as much liveable space as possible and yet as little useless space.
Smart Layout Designs: Where Form Meets Function
Your home should not be viewed merely as a space filled with furniture and appliances. Settling for the bare minimum will likely lead to disappointment over time. Our first ingredient is finding a home where every square inch is meticulously planned and curated to create an expertly designed and modern haven of comfort and relaxation. It’s about a living space that not only meets all functional requirements but also enhances the quality of everyday life.
In Singapore, the cost per square foot is notably high, prompting most developers to create spaces that are efficient, functional, and compact, minimizing wasted space. Trends in the early 2000s showed that balconies were being omitted from new buildings. However, from 2000 to 2010, bay windows started to appear, although this design was soon abandoned as they were considered a waste of space. From 2010 to 2015, properties were built with large balconies, with developers hoping to capitalize on the extra square footage. Fortunately, there has been a shift towards more client-oriented designs due to feedback from the public.
In response to post-COVID preferences, developers are adjusting residential layouts to enhance comfort and functionality. Common rooms have expanded from the standard 8-9 square meters to accommodate a queen-size bed or a single bed with a study table, catering to diverse household needs such as hosting elderly parents or children. There is also a trend towards slightly larger living rooms to facilitate family activities like watching TV, while ensuring that the size does not contribute to perceived wastage of balcony space, as the dimensions of living rooms and balconies are interconnected.
Developers are focusing on efficiency by reducing corridor space, which they now see as simply a passage from living areas to bedrooms. Some innovative designs even eliminate corridors altogether, optimizing usable space within the unit. This holistic approach strives to balance comfort, functionality, and spatial efficiency in modern residential layouts, reflecting evolving lifestyle preferences since the pandemic.
When considering the layout of a two-bedroom apartment, designs like the dumbbell or butterfly layout offer more versatility compared to traditional layouts where all rooms are clustered together. There is no longer corridor space to minimise wasted space. Alongside bedrooms and living spaces, attention is also given to essential areas like the kitchen, storage, and balcony. People still prefer a semi-enclosed kitchen rather than a open concept kitchen. Balconies should be sized to balance between avoiding wastage of space and being too small to use effectively. A well-sized balcony allows for flexible use, such as placing a study table or dining area, making it suitable for entertaining guests or enjoying a peaceful moment with a glass of wine while appreciating a nice view.
Storage space, especially relevant for three-bedroom units, should be strategically located, ideally near the entrance. While some might initially see these areas as wasted space, they become invaluable for installing shoe cabinets or additional storage units during interior design customization. The kitchen size in two-bedroom layouts presents a dilemma. Developers must weigh the benefits of open-concept kitchens, which maximize living and bedroom space, against the preference for enclosed kitchens, which may reduce living area space. Each design has its benefits and drawbacks, catering to different lifestyles and preferences.
For investment properties versus personal residences, the choice between open-concept and enclosed kitchens depends on the intended use. For rental properties, an open-concept kitchen might be preferred to minimize tenant cooking, while for personal use, an enclosed kitchen could be more desirable. Examining two layout examples, the first, termed the “most efficient current layout,” features minimal corridor space, maximizing usable areas. The kitchen, visually connected to the living space through glass, maintains a sense of openness, enhancing the perceived size of the unit. The inclusion of a balcony provides additional versatile space for dining or study purposes.
Conversely, the second layout, designed as a dual-key unit, includes less practical features like a bay window and two kitchens, focusing more on rental potential than practicality for personal use. The presence of wasted space, particularly in the elongated corridor and bay window area, reduces the overall efficiency of the layout. The key factor in evaluating condominium layouts is not just the total square footage but the usability of the space. Comparing the total usable space between properties offers a more accurate measure of their practicality and value.
The layout discussed for this section is for a three-bedroom unit with a study, emphasizing practicality and adaptability to contemporary living needs. Upon entry, there is space ideal for installing cabinets or for decorative purposes, optimizing the use of available area. The kitchen includes a yard area with a toilet, which can be renovated into additional storage space or a helper’s quarters, providing flexibility to accommodate various household arrangements. The yard area serves as a convenient space for hanging laundry, with the toilet serving multiple purposes, including catering to helpers and facilitating laundry tasks without affecting other areas of the home. The dining area is designed to comfortably seat up to eight people, meeting the needs of larger households or hosting guests. The living room offers ample space for an L-shaped sofa and additional seating, ensuring comfort and functionality. The balcony is considered a valuable extension of the living space, large enough to accommodate a six or eight-seater dining table, offering versatility for outdoor dining or creating alternative living areas. In response to the increasing trend of remote work post-COVID, a dedicated study room is provided, acknowledging the importance of a productive workspace within the home. This study area can also serve as a versatile space, potentially accommodating a helper if needed, further optimizing the unit’s usability. The inclusion of a bathroom within the kitchen area serves both practical and personalization purposes, catering to preferences for separate facilities for household members and facilitating efficient laundry tasks without dampening other areas of the home.
Bedroom sizes are optimized, with the common room offering enough space for a queen-size bed and ample walking room, while the master bedroom comfortably accommodates a king-size bed with sufficient additional space. Overall, this layout is highly efficient, catering to diverse household needs and maximizing usable space while addressing modern lifestyle requirements.
Envision walls that are recessed with built-in cabinets, keeping your spaces clear of clutter and airy. Imagine floating shelves filled with priceless family trinkets and artwork. Consider storage solutions in the kitchen with drawers that neatly organize your spices, utensils, and ingredients. Picture a living room that opens up into a comfortable dining space where you can host elegant dinner parties and joyful social events. Finding a home with clever layouts that prioritize efficient use of space will make your investment not only livable but also a pleasure to return to every day.
Proximity to Top-Notch Schools: Investing In Education
A primary concern for many families with school-age children is being close to reputable educational establishments. The appeal of a property situated within a highly regarded school’s catchment area is considerable. It represents a calculated investment in your children’s future, not merely a matter of convenience.
The proximity to schools significantly influences property purchases, with many buyers emphasizing access to reputable educational institutions for their children. Taking St. Nicholas Girls’ School as an example, it’s clear that properties located within a two-kilometer radius of esteemed primary schools often command higher prices, as evidenced by the median price trend in district 20. Although price trends since 2014 have shown minimal deviation, properties near reputable schools consistently command a premium. While price appreciation may align with overall market trends, the ease of selling such properties remains elevated due to their desirable locations. Ultimately, even though price trajectories may mirror broader market movements, the proximity to sought-after schools ensures these properties retain their allure and marketability, offering buyers a dependable investment option with potential for long-term appreciation.
The ability to walk your children to school each morning, confident they are receiving an excellent education that prepares them for future success, is invaluable. For families with younger children, safety is a paramount concern. Ensuring your children arrive at school safely, without the stress of being late for work, can significantly lower daily stress levels and enhance the quality time spent with your loved ones.
Besides the convenience of easy drop-offs and pickups, parents who prioritize their children’s academic and social development can rest assured knowing their property is close to prestigious schools.
In addition to the practical benefits of living near your child’s school, properties in areas with renowned educational institutions tend to maintain excellent resale values. The combination of desirable location and the assurance of high-quality education makes these properties highly sought after in the real estate market.
Developer Pedigree: Building Trust and Confidence
When it comes to selecting the right property, the developer’s reputation plays a crucial role in your investment decision. A developer with a proven track record and a portfolio of prestigious projects provides concrete evidence of their ability to deliver success, assuring you of a wise investment.
For example, some buyers, have a preference for CDL projects, noting the efficient layouts as a hallmark of their developments. CDL’s reputation as a top developer in Singapore underscores their commitment to delivering well-designed spaces that meet practical needs. Conversely, other buyers might favor developers like UOL for their luxurious and high-end offerings, which include spacious common facilities that enhance the living experience. The perceived quality and attention to detail in UOL projects lend a sense of exclusivity and sophistication that appeals to certain buyers. Moreover, developers like GuocoLand attract buyers with their ability to transform entire estates into vibrant and desirable residential communities, adding significant value and appeal to their properties. Overall, buyer preferences are influenced by factors such as layout efficiency, perceived quality, luxury amenities, and transformative initiatives by the developer, all of which shape the decision-making process and affect perceptions of value in the real estate market.
Developer pricing strategy is another critical aspect to consider when evaluating property investments. Developers like Sim Lian, UOL, and CDL employ a confident strategy by consistently increasing prices midway through a project’s development. This approach benefits early buyers as property values appreciate over time. Investors are encouraged to focus on developers known for proactive pricing adjustments, as these often lead to substantial profits for early purchasers. Conversely, caution is advised with developers who show hesitancy in adjusting prices, as they may not maximize potential returns, possibly leading to missed profit opportunities. Aligning with developers renowned for confident and proactive pricing strategies can significantly boost the investment potential of a property, providing investors with security and confidence in their financial returns.
The reputation of a developer encompasses more than just pricing strategies. It includes factors like bulk purchasing power, material quality, maintenance services, consumer feedback integration, and a transformative vision for development areas. Major developers such as UOL and CDL benefit from economies of scale that allow them to purchase materials in bulk, achieving cost efficiencies that translate to higher quality finishes at competitive prices. For example, UOL is known for its use of premium marble flooring, which appeals to discerning buyers, while CDL’s property management arm ensures lower maintenance fees and superior upkeep. Additionally, esteemed developers like CDL prioritize consumer feedback, regularly engaging with the market to refine property designs and ensure their projects remain desirable and relevant. Developers with a transformative vision, such as GuocoLand, undertake projects that reshape and revitalize neighborhoods, enhancing the value and appeal of surrounding properties, as seen in developments like Martin Modern. Partnering with reputable developers not only offers the potential for higher profits but also ensures superior quality, efficient maintenance, consumer-centric design, and a transformative impact on development areas, making such investments attractive and viable in the long term.
In a competitive market, the reputation of a developer distinguishes their properties. Home investors are not just purchasing a structure; they are investing in a concept crafted by industry professionals. An excellent property becomes a smart investment through the assurance that comes with a reputable developer. The difference between an ordinary developer and one with a distinguished pedigree lies in their meticulous attention to detail. A reputable developer seeks not just to meet expectations but to exceed them, demonstrating modern innovation and designs that reflect their commitment to excellence.
The MRT Effect: Accessible Living, Elevated Value
Real estate has always been significantly influenced by location, and proximity to public transportation is a key factor. The substantial benefits of living near a major transportation hub—often referred to as the “MRT effect”—extend well beyond simple convenience.
The morning rush is frequently the first challenge of every commuter’s workday, and it can be exhausting, diminishing both efficiency and mood once in the office. Living close to an MRT station can offer the much-appreciated opportunity to catch a few extra minutes of sleep, potentially saving you from reprimands for tardiness. Beyond aiding your commute to work, this convenience is beneficial for traveling across the city, completing daily errands like grocery shopping, and freeing up more time for personal hobbies and interests.
The “MRT effect” also significantly impacts property prices and investment opportunities. When new MRT stations are announced, nearby property prices typically see an increase, presenting lucrative opportunities for investors. Keeping an eye on announcements regarding future MRT lines and stations is crucial, as properties in proximity to these developments often experience appreciable gains in value. Purchasing property before such public announcements can provide a strategic advantage, with prices likely rising significantly post-announcement.
The distance from an MRT station directly influences property prices, with properties closer to stations generally commanding higher premiums. While the profit potential is strong regardless of the exact proximity, being nearer to the station enhances convenience and may make rental or resale processes easier.
During the construction phase of an MRT line, property prices may dip slightly, offering a strategic entry point for buyers to invest at a lower cost. Investing before announcements or during construction phases is seen as particularly advantageous.
Once an MRT line becomes operational, properties along the route typically experience price increases. Maintaining ownership in these areas can yield substantial returns as property values appreciate over time. However, it’s important to note that not all properties near MRT stations benefit equally post-commencement. Factors such as existing connectivity and demand influence the degree of price increases. For instance, less-connected areas, such as those along the Cross Island MRT Line, may witness more significant growth compared to well-connected regions like Bukit Timah.
Properties near the upcoming Serangoon North Avenue 1 MRT station, for example, have already experienced price increases following the announcement of its construction. As construction progresses, anticipated growth in property values continues, highlighting the potential for significant investment returns.
Accessibility features of the MRT not only enhance your standard of living but also positively impact property values and rental potential. The demand for such convenience underscores the desirability of these properties, and while the initial cost might be higher, the potential return on investment justifies the premium price tag.
Refer to our deep dive in-depth analysis for The MRT Effect: How MRT Stations Affect Property Prices
Wallet-Friendly Prices: Striking the Balance
Property prices are an important consideration in a market where affordability is a top priority. The “secret sauce” of an attractively priced property attracts a wide range of buyers, from first-time homeowners to those looking to upgrade from their HDB flats.
Imagine finding a property that does not make your wallet scream in protestᅳa home that provides value without sacrificing quality. Striking a balance between price and value is critical, and properties with competitive pricing provide opportunities for those looking to enter the real estate market.
Affordability not only makes the long journey to homeownership more plausible but promises that your investment will yield dividends in the years to come. A wallet-friendly purchase provides a safety net where you’re not at risk of falling into debt and can make steady progress in life.
Putting It All Together: Your Recipe For Success
Much like how you can’t have just one ingredient to make a sauce, navigating the property market requires you to do your research and notice the myriad of factors that determine the perfect property for you. Whether you’re drawn to a property with proximity to a renowned school, or a property with innovative smart design features, consider the significance of each ingredient and how it lines up with your preferences and requirements.
So, as you begin your property search, consider the ingredients that are most important to you. Seek out properties that provide the ideal combination of these features, and you’ll be well on your way to finding the home that not only meets but exceeds your expectations!