It has been said, in real estate it is about ‘location, location, location’. That is true to a large extend but the devil is in the details. What is it about a site’s location that makes it truly appealing to developers and homebuyers?
It is important to note that when one acquires a property - be it a development site or an apartment unit - one is buying into the entire neighbourhood and what it represents. Therefore, developers and homebuyers alike would assess locational attributes of real estate opportunities in great detail before plunging headlong into the purchase.
Colliers International managing director Tang Wei Leng, said, “Developers are well-aware of what the modern and savvy homebuyers of today want. Prospective buyers have become more sophisticated - a home is no longer just a roof over the heads, it is a reflection of their lifestyle, beliefs and aspiration. As demography trends evolve and the population become more affluent, people’s expectations of what makes a great living environment will change. Against that backdrop, developers who have a good mix of well-located development site – including larger ones – will be in a better position to ride the evolving market trends.”
No two neighbourhoods are completely identical, but great ones do have many common elements. Colliers REview looks at five components that make a residential neighbourhood or plot stand out from the rest.
Public transportation transforms communities, promotes a more sustainable environment, and improves quality of life. Anecdotally, homes near major roads and key transport nodes are more sough-after. For instance, those that are within 500m from an MRT station generally could see a 10% premium in home value compared with homes that are not within walking distance from the train stations. On the rare occasion, some residential sites – such as Grange Heights and Braddell View - find themselves surrounded by two or more MRT stations as new train lines are being developed.
Proximity to great schools
Being near top schools is a plus not just for families with children, but also all home owners in the neighbourhood as the schools help to raise the attractiveness of homes in the area and keep their prices firm.
Outdoor activities and amenities
Apart from schools, proximity to a range of amenities such as retail hubs, F&B and entertainment options as well as outdoor activities can also help to sweeten the appeal of residential estates. Nature reserves and reservoir parks, for example, offer nearby residents with a myriad of recreational activities – be it hiking, jogging, a weekend picnic or an evening stroll – enhancing well-being and social bonding. Increasingly, being close to nature and lush greenery has become a key factor as property buyers become more sensitive to environmental sustainability and to the quality of the urban environment they live in.
Wellness and medical care
Access to quality healthcare is important to all segments of the community and a residential estate that is located near to hospitals and medical hubs will typically be sought-after. As the population ages, demand for medical and wellness services will increase, and having a quick access to healthcare providers will make life that much more convenient for today’s busy households.
Sense of community
Community is a vital aspect of living. Having a large contiguous development site will enable the developer to create vibrant community environments and spaces – including well-designed playgrounds, pavilions and courtyards - that will help to increase social interactions. Such social ties play an important role in positively supporting a one’s physical and mental health.
Young families, local and expatriate, increasingly appreciate more sizeable and spacious residential developments that offer a more conducive environment for personal and community activities, complementing the modern efficient housing formats. Parents also feel that it is much easier for children to find playmates across age groups, since there are more families living in a larger residential development.
Real estate developers who are seeking residential development sites that check all the boxes can contact Colliers International here