by Sky Tang
Every property has an intrinsic value, but how do we know if a property is really worth its price? We here at skytng.com have come up with a rating system, to rate each property over a value of 5 stars. The more stars the property achieves, the higher the value of that property will be. This guide shares with you the fundamentals needed in every property, so you don't need to pay more than you really should.
Of course, there are plenty of ways you could use this guide. For example, finding undervalued properties, or checking if the property you are looking at is really worth that much when compared to another similar rated town. Its a simple, easy way to understand how property values can change over time. If you want a rating before you buy, feel free to call us at 9834 3488, or whatsapp us here.
Number 1 - Access to Workplaces
The criterion we're looking for here is a quick 10-15 minute walk or jog to major workplace clusters. No public or private transport needed. There are multiple reasons why this is worth a star in itself. Firstly, it means the area is very rentable to expats, it also means that its most likely in a "town" area, like Orchard or Marina Bay, which often bring a plethora of F&B and Shopping options.
One Star - A fifteen minute or below walk/jog to major workplace clusters such as Orchard, Marina Bay or One North. Mapletree Business City could be considered too.
0.5 Stars - A fifteen minute or below walk to other major clusters like Changi Business Park, Jurong East, Tampines Central and Paya Lebar.
Number 2 - Transport
For transport, its easy to understand. It simply means the accessibility to public transport, and the more the better. If public transport is limited, then at least have a highway nearby. If none exist, then the property actually warrants a negative star. The reason why this matters so much is because the more accessible a place is, the more diverse a crowd it attracts. Both tenants and buyers change jobs and schools frequently, and the place that best connects around Singapore wins.
One Star - A seven minute walk or less to a major interchange MRT, such City Hall, Jurong East, Buona Vista, Botanic Gardens, Orchard, Chinatown and Dhoby Ghaut, Bugis and Marina Bay. Do note all of these location have many bus services and interchanges as well and most are located beside major highways.
0.8 Stars - A seven minute walk or less to a good mrt, like those at Kallang, Queenstown, Clementi, Toa Payoh, Serangoon, Beauty World, etc.
0.6 Stars - A seven minute walk or less to a mrt. This basically includes the further ones like Pasir Ris, Sembawang, Joo Koon, Punggol etc.
0.4 Stars - No mrt, but have decent buses that brings you to multiple places. Marine Parade and Balestier comes to mind.
0.2 Stars - No mrt and no significant buses, but near a highway. Like West Coast.
Number 3 - Primary Schools
What matters under this star is the distance to schools, specifically, within 1-2km of top primary schools. This facilitates a certain group of buyers and tenants who are constantly relocating to best secure a chance at enrolling in these schools. Stars are awarded only if the child has a reasonable chance to enrol.
One Star - within 1-2km of multiple top primary schools, with low population density. Bukit Timah, Marine Parade comes to mind.
0.8 Stars - within 1-2km of a single top primary school, with low population density. Or within 1-2km of multiple top schools, with high population density. Bishan, Hougang, Thomson, One North, Keppel, Dhoby Ghaut qualifies.
0.5 Stars - within 1-2km of a top school, plus multiple primary schools. Most major towns have these, such as Punggol, Clementi, Boon Keng, Lakeside, etc.
Number 4 - Parks & Sea/River Views
Everyone likes a nice scenery from home, especially in our densely built city. Plus, great natural wind + plenty of natural sunlight! What's there not to like? However, once again, not all parks and not all views in Singapore are the same.
1 Star - Beautiful unblocked views of Marina Bay, East Coast, Botanic Gardens or the Sea. Or near major Parks like Bishan or Bukit Timah Reserve. Hence, Marina Bay, East Coast, Pasir Ris, Sembawang, Bishan and Bukit Timah falls under here.
0.5 Stars - Views of other major parks such as Bedok Reservoir, Punggol Park, Serangoon River and Chinese Gardens. Towns like Bedok Reservoir, Lakeside comes to mind. However, do note that Lakeside will soon be upgraded to a full star once the renovation of Chinese Gardens is completed by 2022.
Number 5 - Shopping Amenities
This is the very basic essential of residential living, but you'd be shocked to know that in many private projects these are not a given. Hence, if you require a 10 minute walk just to get to a 7-Eleven, you know that property failed this criterion. Spectacularly. Further, a property must match the nearby amenities. A downtown property for example, should be near malls and not just some HDB shops.
1 Star - 10 mins or less to multiple shopping malls. Think Orchard, Tampines, Jurong East.
0.8 Stars - 10 mins or less to a major mall. Serangoon Nex, Hillion Mall at Pasir Panjang.
0.5 Stars - 10 mins or less to a HDB central. Toa Payoh, Marine Terrace belongs here.
0.2 Stars - 10 mins or less to some shops that has at least one minimart.
Thanks for reading! This rating system is a good gauge of the basic fundamentals on what to look out for in a property, and to gauge what its value is supposed to be. Of course, other factors such as east/west facing, floor height, renovation, legislation etc would still continue to play a further part in the exact value of a unit. So, we encourage you to check out our 5 Hottest New Launches or Potential Homeruns that you can buy that really capitalise on all these factors to make sure your purchase really works for you.