{"id":12017,"date":"2017-10-09T03:23:16","date_gmt":"2017-10-08T19:23:16","guid":{"rendered":"https:\/\/www.99.co\/blog\/singapore\/?p=12017"},"modified":"2023-06-23T12:10:27","modified_gmt":"2023-06-23T04:10:27","slug":"vip-neighbour-property-values","status":"publish","type":"post","link":"https:\/\/www.99.co\/singapore\/insider\/vip-neighbour-property-values\/","title":{"rendered":"Does a VIP neighbour really affect property values?"},"content":{"rendered":"<div id=\"bsf_rt_marker\"><\/div><p><img decoding=\"async\" class=\"alignnone size-full wp-image-12029\" src=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/08o9761_read-only_2.jpg\" alt=\"vip neighbour cover\" width=\"1690\" height=\"1080\" srcset=\"https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/08o9761_read-only_2.jpg 1690w, https:\/\/www.99.co\/singapore\/insider\/wp-content\/uploads\/2017\/10\/08o9761_read-only_2-940x601.jpg 940w\" sizes=\"(max-width: 1690px) 100vw, 1690px\" \/><\/p>\n<p>(<a href=\"http:\/\/www.todayonline.com\/sites\/default\/files\/styles\/photo_gallery_image_lightbox\/public\/photos\/43_images\/_08o9761_read-only_2.jpg?itok=nEOhvj5e\">Credits<\/a>)<\/p>\n<p><span style=\"font-weight: 400;\">The news has been abuzz about the \u201cYistana\u201d lately, with new President Halimah Yacob finally vacating her Yishun abode. It was an interesting moment &#8211; some complained about the inconvenience, others raved about the potential benefits. But does a VIP neighbour really raise property values?<\/span><\/p>\n<h2>First, a caveat<\/h2>\n<p><span style=\"font-weight: 400;\">Property values are a strange thing. It\u2019s difficult to isolate any one particular factor, and determine how much it affects the price. For instance, consider the<\/span><a href=\"http:\/\/stomp.straitstimes.com\/singapore-seen\/be-a-neighbour-of-president-halimah-for-460000\"> <span style=\"font-weight: 400;\">famous ad<\/span><\/a><span style=\"font-weight: 400;\">, selling the flat three floors below the President for $460,000.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the price were to rise to $470,000, then could we attribute the extra $10,000 to the fact that the President used to live in the block? How would we know?<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The rise in price may be due to the opening of Northpoint City, a mega mall that will service the Yishun area. It could happen as a natural uptick of the property market, which has been down for around four years, and is nearing an inflection point. It may even be due improved accessibility, via bus and train.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s hard to separate correlation and coincidence from actual price factors; and even if we knew what those factors were for sure, it\u2019s hard to determine how much they influence the price. Some people care a lot that a celebrity or politician used to live nearby; others may not be fans, and not care at all.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">As such, it\u2019s hard to state &#8211; as a fact &#8211; that the presence of VIPs in the neighbourhood will \u201craise the property value by X\u201d. Take such claims with a whole shaker\u2019s worth of salt.<\/span><\/p>\n<h2>The impact of star value on properties is uncertain<\/h2>\n<p><span style=\"font-weight: 400;\">It\u2019s often assumed that VIPs, particularly celebrities, will raise property values; if not for the neighbourhood, then at least for their own home.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">However, property markets have shown that isn\u2019t always the case. For example, back in 2008, Meg Ryan\u2019s Bel Air property<\/span><a href=\"http:\/\/www.dailymail.co.uk\/tvshowbiz\/article-2162446\/Meg-Ryan-sells-palatial-Bel-Air-home-11-1m.html\"> <span style=\"font-weight: 400;\">sold at around S$15.1 million<\/span><\/a><span style=\"font-weight: 400;\">, despite an asking price of $15.53 million. In 2011, Osbourne\u2019s sold their fancy Malibu beach house for<\/span><a href=\"http:\/\/www.dailymail.co.uk\/tvshowbiz\/article-1380913\/Sharon-Ozzy-Osbourne-Malibu-beach-house-sale-10m.html\"> <span style=\"font-weight: 400;\">only S$13.6 million<\/span><\/a><span style=\"font-weight: 400;\">, almost 21 per cent less than the actual asking price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In 2015, the Sentosa Cove home of (now jailed) pastor Kong Hee was taken off listings when it failed to sell altogether. At the time, Kong Hee and his wife were arguably celebrities of a sort. The house has only<\/span><a href=\"http:\/\/www.straitstimes.com\/singapore\/housing\/kong-hees-sentosa-penthouse-back-on-the-market-at-115m\"> <span style=\"font-weight: 400;\">recently gone back on sale<\/span><\/a><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In fact, curiously in 2016, the UK experienced a \u201ccelebrity home price slump\u201d, when stars all<\/span><a href=\"http:\/\/www.dailymail.co.uk\/tvshowbiz\/article-3601681\/The-great-celebrity-house-price-slump-Suddenly-stars-t-shift-mansions-no-matter-millions-lop-price-Hankies-out.html\"> <span style=\"font-weight: 400;\">seemed to be losing money<\/span><\/a><span style=\"font-weight: 400;\"> on their property sales.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s unlikely that celebrities are <\/span><i><span style=\"font-weight: 400;\">causing <\/span><\/i><span style=\"font-weight: 400;\">the price to drop, however. What\u2019s more probable is that, due to their star status, their property agents will push for an ambitious price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If you were advertising a celebrity home (here are<\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/celebrity-homes-singapore\/\"> <span style=\"font-weight: 400;\">some in Singapore<\/span><\/a><span style=\"font-weight: 400;\"> that you can see), you\u2019re almost certain to set the asking price high. The realities of the market then kick in, to moderate the price level &#8211; this would explain why most celebrity homes fetch amounts <\/span><i><span style=\"font-weight: 400;\">below <\/span><\/i><span style=\"font-weight: 400;\">their asking price.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Some of the key factors to note here are:<\/span><\/p>\n<h2>A VIP neighbour can actually provide a disamenity to the neighbourhood<\/h2>\n<p><span style=\"font-weight: 400;\">This was demonstrated by United States President Donald Trump, even before he was elected. The traffic around Trump Tower (where he lived and worked) became an endless snarl, due to security precautions that had to be taken. Local businesses<\/span><a href=\"https:\/\/www.cnbc.com\/2016\/12\/12\/in-the-shadow-of-trump-tower-small-businesses-suffer.html\"> <span style=\"font-weight: 400;\">complained<\/span><\/a><span style=\"font-weight: 400;\"> about loss of customers, due the inconvenience of blocked roads, and inaccessibility by car.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For a time, there was a similar concern in Yishun, although in our case the<\/span><a href=\"http:\/\/www.todayonline.com\/singapore\/life-has-not-changed-president-halimahs-neighbours\"> <span style=\"font-weight: 400;\">neighbours turned out fine<\/span><\/a><span style=\"font-weight: 400;\">. But Yishun residents can be considered lucky. Others who live near a VIP neighbour might experience<\/span><a href=\"http:\/\/articles.latimes.com\/2010\/feb\/14\/local\/la-me-lopez14-2010feb14\"> <span style=\"font-weight: 400;\">whole views blocked out<\/span><\/a><span style=\"font-weight: 400;\">, or ugly security fencing (VIPs and celebrities have higher privacy needs, as fans and loonies may try to break in).<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Also, it\u2019s not very pleasant to have hordes of photographers and journalists clogging up the place, every other day.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">While home buyers may be wowed by the celebrity presence at first, \u00a0most realise that the charm will quickly give way to frustration. The more famous the celebrity, the greater the disamenity they often create.<\/span><\/p>\n<h2>It\u2019s hard to tell if a VIP neighbour scales up the area, or if the reverse is true<\/h2>\n<p><span style=\"font-weight: 400;\">Why don\u2019t we have accurate numbers on how VIPs affect property values? Here\u2019s the simple reason: VIPs tend to move into areas that are already high end, or which are already being gentrified.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">It\u2019s unusual for celebrities or famous politicians to move to \u201culu\u201d places, or low rent areas. As such, whenever you see a celebrity home, it tends to already be in an upscale neighbourhood. And obviously, you can\u2019t credit the celebrity for its property value &#8211; it was already fancy to begin with.<\/span><\/p>\n<h2>It comes down to whether the buyer is an investor<\/h2>\n<p><span style=\"font-weight: 400;\">If the buyer is working under emotional reasons (e.g. the buyer is a fan), then of course the property price can be inflated. The buyer isn\u2019t interested in capital appreciation, or rental income.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">If the buyer is a property investor, however, having a VIP neighbour will matter a lot less. The investor only cares if the celebrity \u201caura\u201d could attract tenants, or will raise the property value; if neither of those prove true (or are not significant enough), there may be no real difference in the ultimate price.<\/span><\/p>\n<h3>Conclusion<\/h3>\n<p>So, does a VIP neighbour really affect property values? The answer is not as straightforward as it seems. Want to keep up with the latest in property market trends? Subscribe to our newsletter for more articles like this. Also, do you think having a VIP neighbour affect your property? Leave a comment down below.<\/p>\n<p><span style=\"font-weight: 400;\">Found the content in this article useful? Read more about <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/things-consider-property-investor\/\"><span style=\"font-weight: 400;\">things to consider before becoming a property investor<\/span><\/a><span style=\"font-weight: 400;\"> and <\/span><a href=\"https:\/\/www.99.co\/singapore\/insider\/spend-windfall-property-investing\/\"><span style=\"font-weight: 400;\">how to spend a $1 million windfall on property investing<\/span><\/a><span style=\"font-weight: 400;\">. <\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>(Credits) The news has been abuzz about the \u201cYistana\u201d lately, with new President Halimah Yacob finally vacating her Yishun abode. It was an interesting moment &#8211; some complained about the inconvenience, others raved about the potential benefits. But does a VIP neighbour really raise property values? First, a caveat Property values are a strange thing.&hellip;<\/p>\n","protected":false},"author":21,"featured_media":54896,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"","_relevanssi_noindex_reason":"","_lmt_disableupdate":"no","_lmt_disable":"no","_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","footnotes":""},"categories":[53593,53589,57565,57131],"tags":[],"persona":[],"class_list":{"2":"type-post","11":"entry","12":"has-post-thumbnail"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v25.7.1 (Yoast SEO v25.7) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Does a VIP neighbour really affect property values? - 99.co<\/title>\n<meta name=\"description\" content=\"What does it mean to have a VIP neighbour living near you? 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