Why prices differ even in the same condominium. How do views and floor levels affect real estate prices?

I am Noguchi, specializing in real estate sales in Fukuoka.

Today, I will talk about how real estate prices change depending on a condominium's "view" and "floor level."

When appraising real estate, I often find significant price differences between first-floor units and high-floor units, even within the same condominium.

Same address.

Same condominium.

Similar floor plan.

Even so, the buyer's impression changes depending on the floor number and the scenery visible from the balcony.

And that difference in impression is reflected in the price.

However, what is important here is not to simply think that "high floors are good" and "low floors are bad."

The value of real estate is not just about the price.

For whom can that room realize what kind of lifestyle?

Is its value likely to be maintained in the future?

Is there a reason that is convincing to the buyer?

I believe it is important to include all of that in the appraisal.

It is not that first-floor rooms are bad

First of all, I want to say that this is not about first-floor rooms being bad.

However, in general condominium appraisals, first-floor units tend to be seen as more reasonably priced compared to high-floor units.

Reasons include:

・The image of being easily accessible from the outside
・Being more concerned about people coming and going or being watched
・The view is less likely to be open
・Cases where sunlight and ventilation are inferior to upper floors

These points can be mentioned.

When buyers look for a condominium, they don't just look at the inside of the room.

What can be seen outside the window?

How much can be seen from the road or neighboring land?

Is it bright during the day?

Does the wind blow through?

They judge based on such lifestyle sensations as well.

Therefore, even within the same condominium, there can be a difference in the appraised price between the first floor and high floors.

On the other hand, the first floor has its own merits.

For example, for families with small children, there is a sense of security in being able to live without worrying about footsteps on the floor below.

There is also the advantage of being able to enter and exit without using the elevator, making it easier to return from shopping or move a stroller.

Also, for units with a private garden or terrace, some people find the appeal of living in a condominium with a detached-house feel attractive.

In other words, rather than the value being low because it is the first floor, it is important to whom the value of that room should be conveyed.

Even if it looks cheap based on price alone, it can be a very attractive room depending on the lifestyle.

Reasons why prices tend to rise as the floor level increases

In condominiums, prices generally tend to rise as the floor level increases.

I have the impression that in the past, there were many cases where a price difference of about 300,000 to 500,000 yen was added for each floor level.

Even looking at the sale prices of new condominiums, it was common to see such differences for each floor.

However, recently, condominium prices themselves have been rising in Fukuoka as well.

Therefore, in new condominiums in the city center, there are cases where there is a price difference of one million yen just by one floor level.

Why are upper floors evaluated more highly?

The most obvious reason is the view.

The higher the floor, the easier it is for the view from the balcony to be open.

There are no buildings in front, and the sky looks wide.

You can see far into the distance.

The night view looks beautiful.

These elements are values that are difficult to express with just drawings and floor area.

Real estate prices are not determined simply by square meters.

Even with the same 70 square meters, the satisfaction of living changes between a room blocked by a building in front and a room with a wide-open sky.

And that satisfaction influences the buyer's purchase decision.

I believe that the price difference due to view and floor level is not just a "high-floor premium," but an evaluation of living comfort and future peace of mind.

The view may change in the future

What is important in an appraisal is not just the current view.

Whether that view will be maintained in the future is also important.

Especially in commercial areas like the center of Fukuoka City, new condominiums and buildings may be built in the vicinity.

Even if it was open in front at the time of construction, a large building may be built a few years later, and the scenery from the balcony may change.

In the case of low floors, if a building is built in front, it may be affected by:

・The view being blocked
・Sunlight becoming worse
・Ventilation changing
・A feeling of oppression

On the other hand, if it is a high floor, there are cases where it is less likely to be affected even if buildings are built in the vicinity.

Of course, it does not mean that high floors are absolutely safe.

However, in the sense that it is less likely to be affected by surrounding development, it can be considered that there is a certain safety margin.

This is an important perspective for both sales appraisals and purchase decisions.

Not just the scenery visible now, but how that scenery might change in the future.

Since real estate is used for a long time, it is necessary to look not only at the present but also at future changes.

Confirm the view from the balcony on-site during the appraisal

When I perform an on-site appraisal, I always check the view from the balcony on-site.

A certain price can be calculated with a desk appraisal.

By looking at past transaction cases, current listing cases, building age, area, distance to the station, etc., you can understand the rough market price.

However, the view, sunlight, ventilation, and distance from neighboring land cannot be understood without going to the site.

Even if it looks bright in photos, when you actually go there, the neighboring building may be close, and there may be a feeling of oppression.

Conversely, even for a room that looks normal on the drawing, when you actually go out to the balcony, the view may be more open than you imagined.

On-site, I check points such as:

・Is there a building in front?
・Is the distance to neighboring land close?
・How much of the sky can be seen?
・How is the sunlight?
・How is the ventilation?
・Are the road or people's eyes a concern?
・Is there a possibility that a building will be built in front in the future?

Real estate appraisal is not just a task of applying numbers.

It is a job of thinking about how to pass on the real estate that the seller has cherished to the next buyer.

That is why it is necessary to carefully confirm the basis for the price.

Looking at the floor-area ratio makes future building risks easier to see

When thinking about views and sunlight, the concept of floor-area ratio is also important.

The floor-area ratio is, simply put, a ratio that indicates how large a building can be built on that land.

For example, if the floor-area ratio is 400% for 100 square meters of land, the idea is that in principle, a building with a total floor area of up to 400 square meters can be built.

Strictly speaking, there are detailed rules such as the width of the front road, building use, common corridors, elevators, and parking areas.

However, as a general understanding, it is easy to understand if you think that areas with higher floor-area ratios are more likely to have large buildings built.

In commercial areas such as Tenjin, Hakata, and Yakuin in Fukuoka City, there are many areas with floor-area ratios of about 400% to 500%.

Also, in areas that have received relaxation due to redevelopment or urban planning, there are cases where even higher floor-area ratios are applied.

In such areas, there is a possibility that large condominiums or buildings will be built in the vicinity in the future.

Conversely, in low-rise residential areas, there are areas where the floor-area ratio is kept to 80% or 100%.

In such areas, there is the merit that it is difficult for large buildings to be built, and a calm living environment is easily protected.

In other words, by looking at the floor-area ratio, you can judge to some extent whether the area is likely to change significantly in the future or whether it is an area where the living environment is easily protected.

This is important both when thinking about the sale price and when thinking about peace of mind after purchase.

Low floors of tower condominiums can also look reasonably priced

In the case of tower condominiums, there is a tendency for prices to be higher on higher floors.

However, I think there is another value for low floors as well.

For example, low floors such as the 2nd or 3rd floor can look relatively reasonably priced even within the same condominium.

The appeal of tower condominiums is not just the view.

・The luxury of the entrance
・Common facilities
・Management system
・Security
・Location
・Brand of the building

These parts are values that can basically be used in common regardless of whether it is a low floor or a high floor.

For those who prioritize the view, high floors are attractive.

On the other hand, for those who value location, management, common facilities, and asset value more than the view, there is also the idea of purchasing a low floor at a reasonable price.

In fact, among real estate agents and buyers for investment purposes, there are those who intentionally aim for the low floors of tower condominiums.

This is because they can enjoy the value of the entire condominium while avoiding the premium price of high floors.

Real estate is not always expensive and correct.

What is important is whether the price and value match your purpose.

This is the same for both selling and purchasing.

Sometimes considered for corporate purchases or inheritance measures

High floors of tower condominiums are sometimes considered from the perspective of corporate purchases or inheritance measures.

In the case of condominiums, there is a tendency for the selling price to be higher on higher floors even within the same building.

On the other hand, since the land share is determined according to the exclusive area, the land share does not increase significantly just because it is a high floor.

Therefore, there is an idea that high-floor units are likely to be seen as having a large proportion of the building part in the price.

Since the building part is subject to depreciation, it can be a consideration when purchasing as a corporation.

Also, in the past, there were people who purchased tower condominiums as an inheritance tax measure.

However, tax treatment is being reviewed year by year.

I think it is better to be careful about purchasing real estate just for tax saving purposes.

Whether taxes will go down is important, but more than that, is the real estate itself valuable?

Is it easy to sell in the future?

Is it reasonable as an asset design for families or corporations?

It is necessary to think including up to this point.

Tax saving is not the purpose, but a part of the result.

If you judge only by tax benefits without looking at the value of the real estate itself, you may have trouble with the exit later.

I recommend proceeding while confirming this with not only real estate companies but also experts such as tax accountants.

Do not judge only by "floor number" in appraisal

So far, I have talked about price differences due to floor level and view.

However, in actual appraisal, the price is not simply determined by the floor number.

Even on the same 10th floor, the evaluation changes for:

・A 10th floor with an open view in front
・A 10th floor with a nearby building next door
・A south-facing 10th floor
・A west-facing 10th floor
・A 10th floor facing a main street
・A 10th floor facing a quiet residential area side

Also, even on the same low floor, if there are attractions such as:

・Having a private garden

・Being a corner room and bright
・Hard for eyes from the road to enter
・No need to worry about sound to the floor below
・Easy to enter and exit without using the elevator
It may become easier to be chosen by buyers.

What is important in real estate appraisal is not to mechanically add or subtract conditions.

It is to organize the strengths and weaknesses of that room and think about for which buyer it is valuable.

And it is to make it a price that can be explained to both the seller and the buyer.

An appraisal that only makes it look high will lose trust in the long term.

Conversely, looking at it too cheaply will also damage the seller's profit.

What is important is the balance between the possibility of selling and the sense of conviction.

Properly convey the charm of the view and floor level when selling

When selling, it is important to properly convey the characteristics of the view and floor level.

If it is a high floor, it is necessary to convey clearly with photos and text:

・View from the balcony
・Sunlight
・Ventilation
・Distance from surrounding buildings
・Night view and openness
・The point that it is less likely to be affected by future buildings

If it is a low floor, it becomes easier for the charm to reach the buyer by conveying:

・Ease of entry and exit

・Ease of child-rearing
・Charm of private garden or terrace
・Sense of price reasonableness
・Merit of being able to use common facilities in the same way
・The point that it is easy to move by stairs during disasters or power outages
In real estate sales, it is important not to hide weaknesses, but to correctly convey the value to buyers who fit that property.

Selling is not just about turning into cash.

It is an act of passing on the home and assets that the seller has cherished to the next person.

That is why it is necessary to convey not only the price but also the meaning that the room has and the image of living.

I think that is the job of real estate sales, including up to that point.

Summary

Even within the same condominium, prices vary depending on the floor level and the view.

Higher floors tend to be more expensive due to factors such as the view, sunlight, ventilation, and a lower risk of future building obstructions.

On the other hand, the first floor and lower floors also have advantages, such as ease of raising children, convenience of entry and exit, the appeal of private gardens or terraces, and a sense of price affordability.

The important thing is not to judge whether a unit is good or bad based solely on the floor number.

What can be seen from that room?

Is there a possibility that a building will be constructed in front of it in the future?

How is the sunlight and ventilation?

What kind of buyer would find that floor level attractive?

And, does the price have a value that can be explained?

By looking at these factors, a more realistic appraisal price becomes clear.

Real estate prices may seem to be determined by numbers alone, but in reality, they are decided by including people's lifestyles, sense of security, and future options.

That is why, when I perform an appraisal, I want to look at the value, not just the price.

For those considering selling real estate in Fukuoka Prefecture, I visit the site in person to provide a free appraisal.

"I'm not sure if I'm going to sell yet, but I want to know the current value."

"I want to know the price after actually seeing the room, not just a desk-based appraisal."

Please feel free to consult with me if you have these thoughts.

I will perform the appraisal while checking the site, including the view, floor level, sunlight, and future building risks.

I hope today's content is at least a little helpful to you.

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