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Date Posted: 03:56:04 06/11/02 Tue
Author: 歡迎炸佢: nancychow@hkpro.com.hk
Subject: 歡迎炸佢: nancychow@hkpro.com.hk

Chapter 10
Factors which cause changes in the value of property and variations in value between properties
· As value is a function of supply and demand, a consideration of the factors which are likely to affect either
the supply of or the demand for property is merited.

· Any increase or decreases in population will obviously明顯地 affect property values. If there is an
increase, all other things being equal, demand will increase. A larger population will require more housing in
which to live, more buildings in which to work, and more buildings for leisure閒暇-time activities and all the
other ancillary補助的 activities associated with modern life.

· Population changes may be considered on a national國民的 basis or on a more local basis, and if there are
movements of population from one area to another property values are likely to be affected in both areas.
Demand will increase in one area and it will decrease in the other, unless any other factors
counterbalance使平均 such changes.

· Changes in the age distribution of the population may affect property values. For example, in one period a
large proportion of the population may be aged under 40, and in another period the majority of the population
may be over 40. Such a change in age distribution will affect the type of demand, as, whereas older people
probably demand more bungalows平房, younger people may be quite happy living in flats. It may be that the
adaptation of the existing housing stock is sufficient to catch for such changes in demand, but it may equally
well be that wholesale批發 building is required.

· Any change in the population of married people to single people will also be reflected in the demand for
different types of properties, and hence因此 in property values. Single people are more likely to be satisfied
with one-room bedsitters臥房與起居間兼用的房間 than are married couples, who, even if they are
extremely非常地 happily married, will sometimes wish to have the privacy私生活 of a room to themselves.
Quite clearly they will wish to have a different type of accommodation from single people, and what is a
suitable variety of property at one point in time may be an unsuitable variety when the ratio of single people to
married people has changed.

· Changes in the age distribution of the population and changes in the population of married to single people
may also affect the size of average disposable income, which in turn is likely to affect the amount of money
which individuals have available for house purchase. Population treads踏 are therefore very important
indicators of possible future changes in demand which might result from variations of this type. The size of
disposable income will also be very much dependent on employment levels, the prevailing流行的 types of
employment and wage and salary levels in the prevailing industries and professions in any particular area.

· Change in fashion and taste also affect property values. The effect is much more obvious in a market such
as the clothes markets; at one point in time 15-inch trouser褲子 bottoms may be in demand a year or two
later a fashion for 19-inch may be in vogue時髦, while a later change may be to bell-bottoms, before the
whole cycle of begins again. Fashion is important with property also, although in a less conspicuous顯著的
way. Fashions change, as a study of older properties will reveal展現. Even though many pre-war houses
provide good accommodation, the appearance of some is of doubtful可疑的 quality. Often their unattractive
design makes them difficult to sell, and many potential purchasers prefer to purchase a house of modern design
and appearance, even though it may in other respects leave a lot to be desired. Many people want to be
up-to-date with fashion and do not like to be left behind by others who have newer and more fashionable
houses. Although the costly nature of property makes it difficult, if not impossible, for people to keep right
up-to-date, changes in fashion over a period of years are evidenced in the price treads of different types of
property.

· Similarly, the fashionableness of areas can change. Chelsea in London is an outstanding example of a place
which at one time was not particularly fashionable as a place which to live, but which later became so, with the
consequence後果 that the prices of its house rose. Many humble謙遜的 cottages農舍 in Kensington have
become the highly-priced homes of the affluent富裕的 because it is fashionable to live in Kensington. Large
sums have been spent on modernising and rebuilding them, and yet in many northern cities similar dwellings
have been cleared by bulldozers推土機 because they were in areas which were not fashionable, and there
were no affluent purchasers prepared to spend money on improving them. There may well have been other
factors which led to this happening, but the fact that the areas were unfashionable doubtless無疑的 helped to
speed up the process of demolition.

· Not only may an unfashionable area become fashionable, but unfashionable designs of property may also
become fashionable. It may also happen that a type of property which is fashionable in one area, may be very
unfashionable in other areas.

· Changes in the type of society are important, but in the United Kingdom such changes are only likely to
occur on a limited scale nowadays, as the major changes of this type took place in eariler times. The change
from an agrarian土地的 society to an industrial society is probably the most obvious example, and to a limited
extent this change is still taking place today in that people are still moving from jobs on the land to work in
industrial areas. However, a reverse movement is also taking place in the United Kingdom, in what whereas in
the past people moved out of the country to live in towns and their former homes were left empty and
decaying, nowadays when the farm labourer moves from the country into industry to obtain higher wages his
empty cottage is bought by a town dweller for conversion into a luxury奢華 country residence. This is another
example of a change in society which results in changes in property values.

· In countries in which population is still expanding, such as Australia, or where there are substantial changes
occurring such as the industrialisation of the economy, such as in Malaysia are still expanding and population
growth and movement help to sustain and even increase property values in areas so affected.

· Changes in technology may also affect property values. In colder climates a house with central heating is
invariably必然性 more valuable than a similar house which does not have central heating, but the difference in
values has been decreased by the advent of improved installation techniques which enable complete central
heating systems to be installed rapidly with a minimum of fuss爭論 and at relatively low cost.
· Where factories are concerned, changes in technology may have far-reaching effects on values. It may be
that new machines are designed and manufactured which carry out industrial processes more efficiently and
more cheaply than existing machinery機械裝置. If the new machinery is, however, taller than existing factory
buildings, workshops with greater headroom will be required, and existing workshops may consequently
become obsolete陳舊的 and less valuable.

· Changes in building methods may affect property values. Improved building techniques will not necessarily
result in changes in value; they may simply result in builders making higher profits if there is no increase in
supply as a result of the implementation完成 of the improved techniques. However, if new techniques do
result in an increased supply of new buildings to the market, unless there is an increased demand, or an
increase in the money supply, the values or prices of that type of property should fall.

· Similarly, changes in building costs may affect values if the result is that the supply of new properties to the
market is also changes.

· The money supply has already been mentioned提到 in passing. If there is a change in the amount of money
available for the purchase of property, without there being changes in any other supply and demand factors,
this should result in changed prices in the property market. If more money becomes available for
house-purchase, rivalry競爭 among potential purchasers may result in prices being bid up, while if there is a
shortage of money the lack of purchasers with cash available may result in prices falling back. It should be
noted that if there is an overall increase of money in the economy, any resultant price-changes may not
represent changes of value in real terms, as the purchasing power of money may have fallen considerably
where an increased supply of money is available to purchase only a fixed stock of goods.

· Not only does the ease or difficulty of obtaining finance affect property prices, the cost of such finance is
also very important. Even though plentiful funds may be available for property purchase, if the cost of
borrowing is high potential purchasers may be deterred制止 from entering the market. Borrowing ￡50,000
for house purchase at 8% pa results in interest charges of ￡4,000 pa, which may be well within the range of
many people. However, if the interest rate increases to 16% a great many people would be unable to afford
the increased interest charges, which represent almost another ￡77 per week, in every1% increase in the cost
of such a loan representing almost another ￡10 per week in funding costs. Changes in the cost of borrowing
therefore affect property prices, as they affect the amount that potential purchasers cam afford to borrow,
although short-term fluctuations are not likely to substantially affect the market. However, if for instance
increases in the cost of borrowing are substantial真實的 and prolonged延長 they may result in people
'trading-down' from expensive to cheaper houses.

· Proximity親近 to good means of communication is a great advantage with virtually實際上 any property,
and if there is any improvement or deterioration 惡化in the means of communication it is likely to have a
marked effect on the value of properties which either benefit or suffer as a result of the change. Country
cottages農舍 reasonably accessible to a motorway access or a main-line railway station will usually fetch賣得
higher prices than those which are more remote遙遠的, while with industrial and commercial properties the
resultant price differences are likely to be even more marked. Few industrialists will wish to be too remote
from their markets, particularly if transport costs from a large proportion of their overheads. Indeed, if the
latter is the case, excessive transport costs could make their products uncompetitive in a competitive market.
Employees of large working forces will benefit from good travel facilities in that the ease of traveling to work
will make it simpler fro them to recruit labour, and they may even be able to do so at lower wages than if they
were situated in a location which involved employees in high travel costs. A study of property advertisements
will readily reveal the emphasis placed on the existence of good means of communication, even with the
humblest卑微的 type of residence.

· Planning control probably has a greater effect on property values than any other single factor, possibly even
greater than all other factors combined. The power of the planner in today's world is very great indeed, and
the decision of a planning committee can result in huge increases in value arising, or alternatively in such
increases being denied. The farmer who obtains planning permission to develop his land as a residential
50-fold as a result of obtaining the favourable decision. Had planning permission been refused, the value
would have remained as for agricultural purposes with perhaps a slight incremental value reflecting the hope
that permission might be obtained at some future date.

· Some of the big differentials which generally exist between the value of land with planning permission to a
landowner and the value to the owner of similar land with no planning permission will be partly eliminated in
circumstances where gains arising from the development value of land are taxed.

· Nevertheless, particularly where the potential purchaser is concerned, there will be a considerable
difference in value in the market, dependent upon whether planning permission for a valuable use has been
granted or not.

· The above factors are some of the more obvious which may affect property values, but there will also be
others which the reader will think of or encounter遭遇 in practice. One of the essential items in the valuer's
armory軍械庫 should be alertness警覺的 to all the possibilities, with the resultant ability to detect the
vital必不可少的 factors in a given situation.

· There are many factors which will cause variations in value between what might otherwise appear to be
similar blocks of land or similar properties, and some of them have been referred to in previous chapters or
earlier in this chapter ( for example, proximity to or remoteness遠離 from good means of communications).
Apart from the individual features of properties referred to in charter 5,there is a range of specific
considerations which are likely to be relevant to the value of any particular property.

· The situation of a property within a particular locality may be very important particularly if there are
variations in the quality of the environment within the locality.

· Proximity to local amenities適意 can be a positive benefit unless a property is so close that it suffers
disadvantages, for example from excessive traffic loads generated by a nearby shopping center or from the
periodic周期性的 noise emanating發出 from and occasional traffic congestion混雜 caused by a local school.

· The adequacy of access on to a site and the length of road frontage can be important factors in determining
value. A property with inadequate road frontage can be disadvantaged while at the other extreme極度的
excessively long road frontages can result in excessively high fencing costs and possibly also security problems
which may in fact adversely affect market value.

· Site area is an important consideration as unless site size is sufficiently large for the current or intended use
of a property, market value is likely to be depreciated?價. At the other extreme, value is likely to be enhanced
if the size of a site is sufficiently large to offer potential for the extension of existing uses or for the further
sub-division of the site and the subsequent sale of part of it.

· The overall shape of a site and the relationship between its width and depth may affect both site value and
the value of any property placed on it. Awkwardly難看的-shaped sites can result in the use of parts of them
being severely restricted, while where sites are either too narrow or too wide in relation to their overall area
there may be serious design constraints which reduce total value below that which would apply to a more
appropriately-shaped site of the same area.

· The slope of a site or the relative position of a site on sloping land can be an important determinant決定的
of value. If there is an excessive slope to a site it could substantially實質的 increase initial development costs,
while it could subsequently put off potential purchasers of a completed property. Similarly, it may well be that
houses built towards the top of a site may command higher values than similar properties lower down a slope
as purchasers often prefer elevated高的 locations, particularly if they also benefit from a good view.
However, if the more elevated location is accompanied陪同 by problems of access because of the slope or
by greater exposure to inclement天氣險惡的 weather conditions, the reverse may be the case.

· With residential properties in particular the existence or non-existence of a good view may, as hinted
above, result in substantial variations in value between otherwise similar properties and as indicated in chapter
5 a southerly aspect in the northern hemisphere or a northerly aspect in the southern hemisphere may be
desirable features with resultant bonuses獎金 in value.

· The possible exposure of any type of property to such things as flooding, subsidence or problem from soil
erosion is likely to have a considerable effect on value. The difference in elevation of a few feet could result in
one property being prone to有…傾向的 occasional flooding and another being immune免疫的 to it, which
would normally affect their relative values, while any possibility of damage from land subsidence平靜 would
have a detrimental不利於 effect on value.

· A valuer should always take care to note detrimental不利於 features of any kind in respect of a property,
some of which may not always be apparent from a physical inspection. Adjoining owners may for instance
enjoy rights of light or rights of way over a property, which in some cases might only be identified by an
inspection of title deeds行為的 or registration certificates, and failure to identify such encumbrances障礙
could result in the over-valuation of a particular property.

· There will often be a range of features of the above type which cause variations in value between otherwise
similar properties in a particularly locality, and an important part of the valuer's job will be to identify such
features and subsequently to take them into account in the valuation process.

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Replies:

Cor' blimey guv'nor! -- Chris, 18:00:31 06/11/02 Tue
- Re: Cor' blimey guv'nor! -- Neoslak, 13:56:47 06/17/02 Mon