Ten years ago, I bought a double-storey terrace house in Bandar Saujana Putra for RM140,000. Then, when the South Klang Valley Expressway (SKVE) highway was completed in 2010, the price of the house rose sharply – and now, its market price is between RM300,000 to RM400,000!
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What are the factors that cause house prices to rise? Usually, people will put it down to economic factors such as demand and supply.
And while that is still correct, there’s actually a key word that you need to focus on: “booster” which can be defined as the in-demand facilities that are available in any given area, making it super attractive to buyers.
It’s like those super hot salespeople who are employed at the durian stall to make the already- tempting goods even more delectable – only this time, you’re selling property instead of fruits….
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As with everything else, the more boosters you can find in an area, the more irresistible it becomes – to the point that it becomes a hotspot both figuratively (because it’s so popular) and literally (because there are SO MANY PEOPLE HANGING OUT THERE…).
Here are the Top 10 boosters that will raise the value of your property:
1. Back To Basics
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Infrastructure is definitely a “must-have” requirement. The transportation framework and facilities – including highways and public transport hubs – will be the top of most people’s list, whether they are going to stay at the property or renting it out.
The real trick is to make sure that those facilities are available, but not so near that it causes you disadvantages as well.
For example, you want a property that is near to a highway entrance or exit, for your own ease of travel, not a property that is directly beside a highway because of the noise and pollution that you will inevitably suffer from.
Similarly, you will want a place where public transportation is easily accessible, but not in the direct routes of noisy vehicles nor commuters. A distance of about one kilometre walking distance between your house and the public transport station would be ideal.
2. Retail details
Having a shopping centre within easy reach is definitely a dream worth pursuing. Imagine being able to literally shop till you drop! However, as beautiful as that dream is, the truth is that not all malls boost property values in the same way – or even with the same quantums.
Facilities and directories play a major role in determining the strength of this boost. An ideal shopping mall would possess several different things to cater for everyone: comprehensive supermarkets for households to take care of their groceries and wants; a variety of food outlets to help Malaysians indulge in their favourite pastime (makan, of course!); ample parking spaces.
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In addition to good access to public transportation; diverse entertainment facilities (such as cinemas and arcades); and children’s zones where kids can
In that respect, The Curve in Mutiara Damansara is the perfect example: it’s got a Tesco, a Kidzania, and that Mecca of Furniture known as IKEA – all within walking distance of each other! If you invested in this area from the early days, you would have seen your house become worth even more than the Pearls that the area is named after…
3. Schools Are Cool!!!
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Having access to good education will definitely increase the value of any property. Good schools are a plus point for home owners with growing families.
Meanwhile, universities are made up of thousands of students, lecturers, and workers, all of whom would be willing to pay for the convenience of having accommodations near their education center.
You can even get in on the expatriate market if there is an international school in your area. It pays to stay in school after all – or at least, to stay near the school…
4. Something bout that work, work, work, work, work…
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As with educational institutions, having an industrial or commercial area near your property will easily see much demand from workers of all types.
It’s a well-established fact that factories, airports, and international industrial areas are full of local workers as well as expatriates – so if you buy the right property, you can rent out to workers instead of having to do work yourself. Except for collecting the rent, of course…
5. Health Leads To Wealth – Literally
If you get a property that is near to either a hospital or a clinic, then only your friends will get sick – sick with envy at how smart an investor you are!
Credit : Islam Itu Indah
Hospitals and facilities that cater to the aged and elderly, or ones that are of a specialist nature, will definitely be highly-sought after, thus raising the value of your purchase.
6. Fun For Everyone!
Entertainment is big business – and the popularity of places like Legoland and Kidzania is definitely solid, no question. In light of this, it will definitely pay to have run a homestay- based business, or even a home-based hotel.
If you market it and manage it properly, you could find yourself making enough to go visit a fun land of your own – but somewhere much further away, like Walt Disney World in Florida or the actual Legoland Billund Resort in Denmark!
7. The Room With Your View
People who shop for homes just LOVE greens and blues. There’s something about scenery in areas such as parks, golf clubs, swimming pools, and waterfronts that just ignite such passionate longing in people.
It’s the reason that these special home units can be priced differently from other units of the same type: beautiful scenery trumps everything else.
8. Tourist Purists
We all love truly our beautiful country – and so do many others, with an average of two million tourists visiting Malaysia every year. It’s easy to imagine them looking for hotels and homestays near popular attractions including KLCC, Sunway Lagoon, Jonker Street, and Mahsuri’s Tomb.
Investing in the right spot means that you have a chance to cater to these vivacious visitors, who will not only pay you directly in cash, but with the best payment of all: word-of-mouth recommendations. So make sure that you choose the right spot – and make sure that you give them proper service.
9. Bigger Is Better
Mega projects – that is, projects that are worth RM1 billion and above – are definitely a magnet for property shoppers. That’s because the project is going to be on such a massive scale as to defy all normal expectations.
The potential for the landmark in terms of commercial viability and employment opportunities will ultimately lead to high demand for real estate in the immediate vicinity – which is why projects such as Bandar Malaysia in Sungai Besi and the Tun Razak Exchange in Kuala Lumpur continue to make the news.
10. Moving On Up, Moving On Out
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Transit Oriented Development (TOD) is being hailed as an exciting fast growing trend in creating vibrant, livable, sustainable communities, consisting of mixed developments – homes, offices, and retail buildings – that are supported by rail infrastructure.
In other words, the Light Rapid Transit (LRT) and Mass Rapid Transit (MRT) networks become a major part of the development. If your property has access to these public transportation amenities, you definitely will not be having any trouble finding tenants or buyers.
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It’s pretty clear to see that the more boosters you can find in your property, the higher its value becomes. Investors, please take note!
by Abdul Aziz Ahmad (Celik Hartanah Founder)