Physical characteristics of real property – Property in Singapore for rent
Property in Singapore for rent – Real property possesses certain unique characteristics which are different from other products. The physical characteristics of the real property are as follows:
- Indivisibility
An apartment with bedrooms, living hall, dining room, toilets, balcony and kitchen can not be physically divided to sell. That is what we mean when we say real estate is indivisible.
However, a large plot of land may be sub-divided into smaller lots to sell, subject to the minimum requirements of the housing type.
Under the real estate investment trusts (REITs) scheme, investors may own a small portion of the property indirectly by owning shares of REITs.
In the case or rental, different parts of a house, for example the rooms, may be sublet to different tenants.
- Heterogeneous
No two pieces of land are the same. Even two adjoining pieces of land may differ in terms of the location, shape, elevation and soil condition. Real estate is often referred to as being heterogeneous.
All properties are also different and unique. Even for same type of design in the same stack of a high rise apartment block, at different storey, the view and sight is different. That is why it takes longer to sell or buy a property. The estate agent or salesperson has to put in substantial effort to assist the buyer to find the right property to buy.
- Durability
Land can be altered but it cannot be destroyed. Property built on land will usually last for a long time and is very durable. While land is indestructible, property built on land over time can deteriorate and depreciate in value. There is therefore a need for the owner to provide maintenance and upkeep the property. The durability of real estate provides stability and security in real estate investments.
- Immobility
Whether landed or non-landed property, the physical building is annexed to the land and is therefore immovable. The location is fixed. The value of a property is very much dependent on its surroundings and its accessibility to amenities such as MRT, shopping centres, hawker centres, etc. The real estate market is basically a localized market affected mainly by the developments of that location due to its immobility. As such, salespersons prefer to specialize in specific locations based on where they are familiar with.
- Scarcity
The total supply of land is fixed. Even though one may try to build taller buildings or reclaim more land from the sea, the supply of land in a given location is still limited. In a small country likeSingaporewhere land is limited, prices of real estate will tend to be higher on a per-square-meter basis compared to a bigger country. Thus the scarcity of land will affect the value of the real estate. Property in Singapore for rent.
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