Updated: Aug 18, 2020
How to Effectively Price the Value of Views in a New Development
3-D Visualization of the Makena Condominium Project, a new development in Singapore
Source: Yu, Han et Chai, “Modeling the Value of View in Real Estate Valuation: A 3-D GIS Approach.” National University of Singapore, Department of Real Estate.
To quantify views as a variable, there is a need to reflect the influence of surrounding buildings’ height, surrounding topography, as well as the height and orientation of the subject property itself. Such an analysis can only be conducted using 3-D modeling techniques.
After conducting an analysis on 841 new units in Singapore, having an unobstructed view of the sea yielded an average premium of 15% on prices.
What does this mean?
Real estate developers need to assess the value of views when creating a pricing scheme for a new development. Orientation and building height have significant impacts on overall pricing. If a property is designed well, real estate developers can achieve higher prices based off optimized views. Working diligently on quantifying views, and other qualitative characteristics of a residential development project is critical in the developers business plan, otherwise potential revenue will be left on the table.
SquareFeet.ai provides an integrated solution, incorporating the value of views, sunlight and design aspects into your unit pricing.
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