Strategic Location as A Determining Factor in Property Prices

Photo by Sylwia Bartyzel on Unsplash

If you are a property investor or just starting to invest in property, then you surely know that properties have varying prices.


The price range of properties in one area may not be the same as in another area. This is because location is one of the crucial determinants of a property’s price.


For example, urban areas provide public services, government centers, healthcare facilities, transportation, and easy access to daily necessities.


In contrast, rural areas tend to have difficulty in accessing adequate public facilities. Additionally, jobs and income in cities are generally more promising.


Is it the diverse public facilities that make houses in the city feel expensive? Certainly not entirely so.


Property assets cannot be moved or stolen. Therefore, the location of the property and the surrounding area are one of the most important factors.


Here are explanations of the factors that complement location as determinants of house prices:


  1. Building and Land Size

Densely populated urban areas often lead to a conversion of land for residential purposes. Many property developers utilize limited land for minimalist housing.


Due to the high assessed value (NJOP) of land in city centers, it’s not surprising that buildings erected on them are expensive. Currently, the average price of land per square meter can reach millions or even tens of millions in major cities.


The more strategic the location, the higher the price. After being transformed into ready-to-live-in homes in major cities, their prices can reach hundreds of millions of rupiahs.


  1. Location as a Determinant of House Prices

Residential areas in urban areas located close to government centers, healthcare services, and education facilities generally set higher prices.


In addition to the expensive land prices, easily accessible public amenities contribute to the higher selling prices of properties in these areas.


Therefore, if you’re looking for a more affordable house, suburban areas can be the best alternative.


On one hand, it might require more effort to reach various public facilities in the city center. However, suburban areas typically offer cleaner air.


  1. Environmental Conditions and Public Facilities

A good environment and nearby public facilities around a residential property can enhance comfort. For example, having gardens and trees around the house can create a cool and pleasant atmosphere.


Maintaining the cleanliness of the environment is also crucial. Property cleanliness management, such as private pool cleaning, is an important facility.


Home security facilities can also be a price determinant. For instance, housing developments that implement a One-Gate System and are equipped with CCTV cameras are undoubtedly safer than those without these facilities.


Public amenities around the house also play a crucial role in determining property prices. Places like schools, hospitals, tourist attractions, restaurants, supermarkets, and the like have a significant impact on property prices.


Especially for property investment, the availability of these public facilities is essential for the property to have a high-profit potential.

Property prices determinants, Urban vs suburban housing, Public facilities impact

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