Davao Real Estate Blog

Did you know why a small 100-square-meter lot in Davao City costs so much higher than 2-hectare land in the province? If your guess is it is because of the location, you are partly right. Expert real estate investors know about this and a lot more. Here are five of the most important factors that affect the price of a property.

1. Location. Naturally, a property that is close to downtown, the shopping centers, and schools costs higher than a similar property that is far from areas such as these.

2. Accessibility. Properties accessible by public transportation facilities like the jeepneys and taxis cost higher than those that are not.

3. Neighborhood or Community. The value of a property is affected by its association with superior or inferior properties. A mansion that is located in a slam area will have its price adversely downgraded. A small bungalow house that is surrounded by wonderful mansions appreciates its value by virtue of its close proximity to high-end properties.

4. Spot or Orientation. Corner Lots, View Lots and Lots Facing East are of the highest demands and therefore priced higher than the regular lots in the same subdivision or community.

5. Market Condition. This has to do with the Law Economics; The Law of Supply and Demand to be specific. Buyers’ Market is a condition wherein there are more properties are available for sale than there are ready buyers. A Sellers’ Market happens when the demand is greater than the available properties for sale.

As a buyer, it is very important to be aware of these factors when selecting a property to invest. The neighborhood, for example, could spell the difference between a profitable and losing investment. And Accessibility could save your day if your car is sleeping on the repair shop.