How to assess value of a property amidst uncertainty?
Here are seven steps to measure the value:
- Find out the actual asking prices and rentals from few sources.
- Analysed the yields an returns, and the projected growth.
- Observe the changes in the market trends.
- Check the occupancy rate in the immediate vicinity.
- For shophouses, assess the ratio of shops to occupied resiential units. The higher the ratio, the better (eg: 1:20 to 1:30).
- For offices, find out if the tenant intends to move out and if possible, the profitability of the tenants.
- Net selling prices of development project [eg: after all rebate, discount, freebies ( buy one unit free one Myvi car) etc.]
Source: James Tan (2020). Raine & Horne