The discussed of Price and Value of property are theoretical approaches to the question of price and value and help you estimate the worth of a property in accordance with your preferences and needs. In practice, however, it is the free market, i.e. the forces of supply and demand, which decide what amount of money a house changes hands for.

There may be a substantial gap between subjective valuations and the fluctuations of the free market. Thus, the subjective value of a property does not always correspond to its actual price. The forces of supply and demand cannot be scientifically predicted. Every property valuation can only ever be a guideline to what the house will eventually change hands for.

Value is, of course, a subjective rather than an objective term. If you favour a detached house with garden somewhere in the Kuala Lumpur countryside, a three-bedroom apartment in central Kuala Lumpur is of little value to you. Even small features like the size of windows are worth more or less to different people. The forces influencing the value of property include the property features and its location; social institutions in the area, wage levels and its title and environmental legislation. It does make a difference whether a flat is in Kuala Lumpur or Petaling Jaya, whether the next good school is two or ten miles away and whether it is a 12th floor apartment with a view onto KLCC or a ground floor apartment in Petaling Jaya.