When views disappear: what property owners should know
I live in a popular neighbourhood where buildings continue to spring up. Ten years ago, the photos I snapped from my balcony captured a very different skyline. Over the years, new structures have steadily crept closer to my condo like watchful sentinels, and it was only a matter of time before they would be at my doorstep. I thought about moving several times, but the places I checked out didn’t carry the same vibe as my neighbourhood, so I decided to stay put.
About a month ago, I ran into an agent at my condo. We chatted cheerfully about how much the value of the apartments in my building had increased. I felt elated when he mentioned that no owners would sell at a certain price. Our engaging conversation faded into memory when a developer announced plans to acquire the adjacent land two weeks later. Unfortunately, my unit faces that land.
When I spoke to the agent again, the enthusiasm in his voice had faded. A few weeks later, he seemed to have recovered from the initial disappointment and was hopeful again about securing a good price.
I decided to take action and spruce up my apartment. I remember visiting a show unit of a prime development in 2023. This particular type was the least popular because the main balcony views were partially blocked by another condo located next to it. However, the sales staff informed us that many prospects were enchanted by the beautiful interior, to the extent that they didn’t mind the obstructed view. As a result, those units sold incredibly quickly; only two were left when we visited. This isn’t the only development that showcases less popular units; I’ve also seen others.
Impact of scenic views on property prices
The heart of the question is: when a property’s views are obstructed, does its value go down? Generally, properties with open views are better to have. Take two equivalent units; the one with the better views will sell more. Although condos of the same size and layout can come on the market fairly frequently, it’s unlikely to find two units that look exactly the same in terms of interior design and decor (unless your development offers fully furnished apartments). When inventory is scarce and you have a desirable location, that final unit can still fetch a good price.
If a unit with a nicer view is not appealing on the inside, but another unit with a less desirable view is well maintained and features a lovely interior, the latter could sell for a better price. The floor on which the property is located also plays a significant role. For condominiums, lower levels are generally considered less desirable. However, depending on how the building next door impacts the vista, lower levels might not be undesirable.
If you visit a low-level unit in a condo with blocked views, it’s not as bad as it seems. At the lower levels, you’ll have a view of trees, roads, and fences, similar to what you’d find in landed properties. The building next door won’t seem so close. However, when you go higher up in the building, the view becomes dominated by structures, and the neighbouring building can appear much nearer from inside the apartment.
If your unit has a view of the common areas of the building next door, that’s an advantage, as long as those areas are visually appealing. Higher levels are better until the views are blocked up.
Comparing the prices of units with a view to those without is not a straightforward task; several factors must be taken into account. Avoid using a fixed percentage or a flat dollar amount to adjust the price of units with obstructed views. Take note that if the obstruction is severe, the number of potential buyers decreases, and it may take longer to sell.
In popular areas, many properties often have obstructed views due to dense clusters of buildings. In this case, a property without open views would not be significantly affected because properties with open views can be difficult and expensive to find.
Opt for a fixed view if you prefer not to have changing skylines impacting your living space. This choice alleviates concerns about new developments in the area.
Setting the right price
If you are in the same situation as I am and you are thinking about selling your property, it’s important to take a good look at how the development may impact the value of your property. To provide some context, we intended to sell before the news broke. Our primary reason for selling is the need for additional bedrooms to accommodate our ageing parents.
At present, it’s unclear when the construction will start and what form the development will take. We can only imagine its design by looking at similar buildings in the area with the same lot dimensions. Our inquiries with the local council suggest that the developer has yet to submit any plans for the project.
I asked those in the trade, and apparently, the land price is considered very high. This means the developer will need to sell the condo units at a premium price to achieve a decent profit. The announcement indicated that they plan to build a “premium” high-rise. Given the estimated selling price, it is likely that the condos will have an aesthetically pleasing design. Additionally, their development is expected to be in a different league from ours, which means it won’t pose any competition.
The experienced real estate agents provided some numbers for my unit, which are higher than the average median price displayed on property portals. While transaction prices are concrete figures, they do not tell the whole story. Lower transaction prices may be attributed to poor interior conditions, minimal or no furnishings and distressed circumstances.
Although asking prices tend to be high, I carefully examined various advertisements and noticed a pattern, albeit with some inconsistencies. The more expensive units were fully furnished and well-maintained, while the lower-priced units often had little to no furnishings.
After considering the agents’ input, I decided to proceed with the listing of my property. My unit features high-quality fittings and furnishings and is well-maintained. To assess the market value of your property, you can engage a property valuer instead of trying to work out the price yourself.
Investigate what’s coming up near your property
If your property borders a vacant lot or green space, it’s important to investigate any potential developments in the area. Even a large occupied site can be redeveloped into high-rise buildings. You may think that your view is secure if you are next to such a site, but it’s advisable to learn more about the property’s ownership, operations and future plans.
Visit your local council and head to the zoning and planning departments to find out the designated zoning of the land and whether the developer has submitted any plans for upcoming projects. Provide the officers with the title details and the location of your property. The zoning classification determines the permitted uses of the land. Ask the zoning department about the possibility of changing the land use if it is currently zoned for purposes other than residential or commercial. You can also conduct a title check at the land office to determine its owner.
Your property offers much more than just the views from the main balcony. Key factors such as a prime location, functional layout, well-maintained premises, beautiful common areas, and proximity to shopping centres, retail complexes, cafes, restaurants, and parks all contribute to a property’s desirability. The condos in my development have appreciated in value over the years, even with the ongoing construction of neighbouring condos. This trend is a testament to our property’s resilience in adapting to changes in the neighbourhood’s landscape.
