1) Occupancy Permits/Certificates: Prohibition or Rectification orders from the local Council for non-compliant developments can result in substantial repair and remediation costs.
Valuation reference: Apartment building in Roseberry, NSW issued with a Prohibition order.
Impact on Valuation: 20-35% drop in Market value. Unsuitable for mortgage lending.

2) Combustible Cladding – Presence of combustible cladding and ensuring compliance with safety regulations can significantly affect a building’s value.
Valuation Reference: Apartments in Hughesdale, Victoria with significant cost of over $100,000 per strata apartment.
Impact on Valuation: 20% drop in market value Reduced market demand, limited buyer segment and uncertainty.

3) Water Damage & Building Repairs – Structural damage and/or repairs or water damage may impact the structural integrity and appeal of the development.
Valuation Reference: Apartments in Box hill and South Yarra, Victoria – Significant water damage and ingress in basement leading to repair costs of over $90,000 per strata apartment.
Impact on Valuation: 15-20% drop in market value.

4) Inland and Bay Views – Premium views (specifically harbour/bay views) and an optimal aspect (north-facing, for example) can significantly elevate the market value.
Valuation Reference: Apartments in Milsons Point, Sydney
Impact on Valuation: 15- 30% uplift in Market value for apartments with unrestricted Harbour bridge and bay views.

5) Car Parking –Lack of a car space or with a space in a car stacker can reduce market value and appeal compared to those with dedicated car spaces. Car stackers are not preferred due to their maintenance costs, frequent down times and inconvenience.
Valuation Reference: Apartments in St Kilda, Melbourne CBD and Sydney CBD Impact on Valuation: 5-10% difference in market value.

6) Floor Layouts and size – The layout of a unit can drastically impact its liveability and marketability. Dual living zones, practical layouts, and spacious living areas are highly sought after.
Valuation Reference: Various apartments and townhouse/Duplex Units across Vic and NSW.
Impact on Valuation: Variation of 10-15% in Market Value

7) Aspect and Privacy Issues – Overlooking from neighbouring buildings can affect privacy, reducing a property’s appeal and market value.
Valuation Reference: Various apartments and townhouse/Duplex Units across Vic and NSW.
Impact on Valuation: Variation of 5-10% in Market Value.

8) Building Amenities – Pools, saunas, tennis courts, and other amenities add significant value compared to buildings lacking such features. These however also result in excessive ownership costs sometimes impacting market value and demand.
Impact on Valuation: 5-10% difference in Market value depending on location.

9) Ownership Costs: Higher maintenance and Strata Owner Corporation Costs can be an impediment to the market value and marketability the Unit/apartment.
Impact on Valuation: Variation of 5-10% in Market value.

10) Location & Position – A property’s location within a sought-after area and its proximity to amenities, transport, and lifestyle offerings can greatly influence its value.

Impact on Valuation: Variation of 10-30% in Market value
Understanding these factors helps make informed investment and mortgage decisions.
If you need a professional valuation, get in touch with our expert team!