Do Park-Facing Apartments Deserve A Higher Price?
03 Oct 2016
Parks and green spaces are important features of modern housing projects. As cities become more of concrete jungles, such natural spaces are gaining more importance for a prospective homebuyer. While such properties command a premium, park-facing apartments within the project are also priced higher than those which are road-facing or towards a corner.
In other words, park facing apartments have higher preferred location charge (PLC). PLC is an additional charge that you as a buyer, have to pay for choosing a better location within the project.
So the question is whether park-facing apartments deserve a higher price or not.
Benefits of Parks
The benefits of having a park-facing apartment are many. Here are some of them:
- They offer better views from the apartment
- They can help reduce stress
- They bring in better natural ventilation
- They offer more privacy, keeping the apartment away from others
- They offer a pleasant balance between nature and modern comforts
The Rationale behind PLC
The premium that is charged for park-facing apartments is related to the benefits of living next to green areas. Due to the design of the entire project, a premium is levied on park-facing apartments. The difference in price between a park-facing apartment and one that does not overlook a park is 10% to 20%, depending on the price that is finalised for the deal.
What Can You Do?
- If you are buying a flat for self-use, you should not hesitate to choose a park-facing apartment.
- On the other hand, if you are buying a property for investment purpose, you should focus more on the location rather than on the location of the apartment within the project.
- If you cannot afford the PLC, be vigilant about the current market rate. Timing plays an important role. You may get an apartment without PLC if you book a home at the time of project launch.
- Opt for a park-facing project only if it really benefits you. It makes no sense to pay a premium if you’re planning to stay on the 10th floor or above. You should also try and negotiate on the price with the developer.
To conclude, however, park-facing apartments have always commanded a higher charge, there should be a regulation of these prices since there is currently no cap on the PLC.