Have you ever considered the factors that impact property value in Malaysia? How do you evaluate the value of a property prior to purchasing one of your own? As for property investors, what are the factors that will greatly impact the value of your investments? As a buyer/investor it is important to acknowledge the factors that will affect the value of your purchasing property in order to make the right decision when purchasing it. Identifying the negative factors may also put you in beneficial terms when it comes to bargaining with the seller. Vice versa, laying out the positive factors may benefit the sellers to more effectively sell their property.

You may think as easy as it seems, supply-demand factors are what impacts the property value. High demand will result in higher price, low demand results in lower price? In general terms, yes, you are absolutely right. But the impact is not as simple as that, there are other factors to take into consideration as well. 

Here are a few simple facts to guide you in evaluating a property in Malaysia:

1. Location & Accessibility

The area/neighbourhood the property is located at, is the most important when it comes to property evaluation. Different areas encounter different trends in terms of the property price. Usually, property value at a prime area will be much better than properties located at a rural area. Why is this so? Mostly, properties located at prime areas are integrated with many good features that boost its value, such as, attractive outdoor spaces, good security with low crime rates and has their own neighbourhood feel. Whereas, properties located at a rural area may have limited outdoor spaces and minimal security with high crime rates which will degrade the value of the properties.

When purchasing a property, what always comes to mind is choosing the right location with lots of accessibilities. By location and accessibility meaning:

• Easy access & convenience to public transport - Having a MRT/LRT station near your designated property will definitely boost the value of your property as this will provide convenience in travelling around, especially in Kuala Lumpur
• Easy access to highways - Location with easy access to highways are higher in demand and in value

2. Facilites & Amenities

A good property comes with great facilities & amenities right? Access to a variety of facilites & amenities will never slip through the mind of buyers. Facilities & amenities that will greatly impact on property value are such as:

• Access to malls/shopping area - Its always great to have good access to large/iconic malls where you can get great food choices and also ease of stocking up on your groceries at your favorite grocers 
• Access to educational institutions - Demand for properties located near educational institutions are high when it comes to home-hunting parents, this will set a convenience for them when sending their child to school

3. Size & Condition

Big or small, size does matter when it comes to evaluating the value of a property. The bigger the size of the property, the higher the price. Not only size, condition plays an equally crucial role, first impressions are always important right? A well maintained property will definitely overtake a poorly maintained one. Properties with good condition definitely comes with a higher price. 

4. Developer

Designer brands come with a reputation, so do property developers. Some property developers have better reputation than the others. Consumers will have a level of expectations on quality towards property built by branded developers which of course will come with a premium price. Properties by well known developers are usually higher in price than the others.

5. Economical Conditions 

There are several economical indicators that relevantly impact the property market. A poor performing economy will impact on the supply-demand curve. When an economy is at its low state, demand for properties will decrease as well. As demand decreases, property value will decrease simultaneously. A poor performing economy may also impact on the consumers' spending behaviour as consumers may be unable to fulfill the high interest rates loan repayment which also reflects onto a low in demand on properties.

As we have now listed out the few factors that impact on property value in Malaysia, you should now be able to steer in between of challenges and have an understanding when it comes to purhcasing a property. There is no right or wrong time to purchase a property, just have a clear understanding of what property you are potentially buying and evaluate them based on the above listed factors and you will be good to go!

Log on to ZeroHero now to look for your desired property!