Property Valuation Is More Than Just Comparing Nearby Sales

Learn what affects property value in Singapore, including location, comparable transactions, remaining lease, and market conditions.

Blogs & Articles / Property Valuation is More Than Just Comparing Nearby Sales

“Can’t You Just Look at What the Neighbour Sold For?”

One of the most common questions people ask about property valuation is: “If my neighbour’s unit sold for $1.5 million, doesn’t that mean my property is worth $1.5 million too?”

Not necessarily. While recent transactions are an important part of the valuation process, they are only one piece of the puzzle.

Looking Beyond the Numbers

Valuers often begin by analysing comparable sales which are properties that are similar in terms of location, size, tenure and property type.

However, no two properties are exactly alike. Even within the same development, factors such as floor level, unit facing, view, layout, condition and renovations can influence how buyers perceive value.

For example, a higher-floor unit with an unblocked view may attract stronger demand than a lower-floor unit facing a busy road, despite having the same floor area.

Context Matters

Valuation is not simply about matching a property to the nearest transaction. Valuers also consider the circumstances surrounding each sale, prevailing market conditions and whether a transaction is truly comparable to the property being assessed. A transaction that occurred several months ago during a different market environment may not carry the same relevance today.

The Role of Professional Judgment

This is where professional judgment comes in. Property valuation involves analysing market evidence, understanding buyer behaviour and assessing the unique characteristics of each property to arrive at a supportable opinion of value.

Recent sales provide valuable guidance, but valuation is ultimately about interpreting the market, not just reading transaction records.

Leroy Toh

Written By

Leroy is currently a Year 3 student progressing into Year 4 at the National University of Singapore, pursuing a degree in Business Administration (Real Estate).

Tan Wei Han

Reviewed By

Wei Han is a Valuer at CKS Property Consultants, graduated from the University of Reading Malaysia with a BSc in Real Estate with Honours, where he built a strong foundation in property valuation, real estate economics and facilities operations.