reporter2
09-02-12, 15:20
http://www.straitstimes.com/Singapore/Story/STIStory_762842.html
Elder-care centres hurt resale flat prices: Agents
Published on Feb 4, 2012
ELDERLY residents may appreciate having an elder-care centre in the neighbourhood, but property agents say these senior-friendly amenities can turn off some potential buyers.
Some property agents and consultants said the value of a property located near any centre serving old folk, such as a day-care centre or hospice, can cause home prices to dip by as much as 20 per cent.
Mr Eric Cheng, chief executive of ECG Property, said a majority of his home-buying clients offer between 3 per cent and 5 per cent less in cash over valuation for flats with elder-care centres nearby.
'Buyers will take advantage of the centre to negotiate with the seller, who will then lower the asking price,' he said. 'However, it does not affect the absolute value as much.'
Premiere Realty director Jimmy Ng said most home buyers do not care about the distinction between a hospice and a day-care centre. The former offers palliative care, while the latter is where frail or disabled seniors go for care and therapy while their caregivers are at work.
For example, he said property prices in Bukit Batok Street 11 have stayed stagnant, mainly because it is near St Luke's, a community hospital that also serves old folk.
However, Mr Lee Sze Teck, a senior manager at Dennis Wee Realty, said the presence of elder-care centres is only a 'secondary consideration'.
'I don't think the centres will deter buyers much. It ultimately boils down to location, or nearby amenities, which are more important criteria,' he said.
Elder-care centres hurt resale flat prices: Agents
Published on Feb 4, 2012
ELDERLY residents may appreciate having an elder-care centre in the neighbourhood, but property agents say these senior-friendly amenities can turn off some potential buyers.
Some property agents and consultants said the value of a property located near any centre serving old folk, such as a day-care centre or hospice, can cause home prices to dip by as much as 20 per cent.
Mr Eric Cheng, chief executive of ECG Property, said a majority of his home-buying clients offer between 3 per cent and 5 per cent less in cash over valuation for flats with elder-care centres nearby.
'Buyers will take advantage of the centre to negotiate with the seller, who will then lower the asking price,' he said. 'However, it does not affect the absolute value as much.'
Premiere Realty director Jimmy Ng said most home buyers do not care about the distinction between a hospice and a day-care centre. The former offers palliative care, while the latter is where frail or disabled seniors go for care and therapy while their caregivers are at work.
For example, he said property prices in Bukit Batok Street 11 have stayed stagnant, mainly because it is near St Luke's, a community hospital that also serves old folk.
However, Mr Lee Sze Teck, a senior manager at Dennis Wee Realty, said the presence of elder-care centres is only a 'secondary consideration'.
'I don't think the centres will deter buyers much. It ultimately boils down to location, or nearby amenities, which are more important criteria,' he said.