Ever since the 1980s when MRTs were first introduced in Singapore, MRTs have impacted greatly the property market as well the public transport system. MRT are initials that denote Mass Rapid Transit. It is increasingly used in major cities all over the world with Singapore being one of the regions that has greatly embraced MRTs. Singapore is particularly tiny when compared to other states and is a major property investment hub for most investors. The region enjoys a wide network of MRTs interconnected with feeder roads. If you are a buyer or a real estate investor within Singapore then you can never ignore the impact of MRTs on your property investments.
Proximity of Property to an MRT
- Property units that are located near a MRT station tend to attract a huge demand and hence command a premium price. Contrarily, those that are situated far away from MRTs have a small demand and hence cost less. In fact, those near MRT stations are worth 10 to 15% more on average unlike the former. Stretch your eyes and ears for Grandeur Park Residences price and is speculated that Grandeur Park Residences price will be previewed selling at least 10 to 15% more than those developments which are further to Tanah Merah MRT. Of course, Grandeur Park Residences is only 5 minutes’ walk to Tanah MRT relatively! This may be attributed to the fact that MRT lines boost accessibility and provide additional convenience to residents. Furthermore, property value for units near a MRT tends to stabilize irrespective of the prevailing market conditions. During a downturn its value hold and when things normalize experience better price appreciation.
- Gauging by the historical price trend for Singapore’s property, it is quite obvious that MRT affect property prices and value. For instance, prices of property located within 10 minutes walk or 1km from the Circle Line stations have substantially increased in value since 2009.
- If you are considering new launch condos, then watch out for upcoming MRT stations since properties situated near MRTs are already attractive. Such regions are ideally quite affordable before the MRT stations are completed and enjoy a gradual rise in property value once the MRT stations are completed.
More than just MRT
It is undeniably true that MRT stations hugely affect property value. However, it is not wise to put too much emphasize on the proximity of property to a MRT when evaluating the value of property. This is just but a small part of what affects the value of property. Some other factors come into the picture when it comes to home prices.
Current and proposed amenities around a project will affect how high prices can go in future. Investors should not only find out the current supply and demand of property within the area but should also find out whether there are proposed future plans. Clement Canopy price is one good example. Though MRT is not within walking distance to Clement Canopy, its neighborhood has a serenity environment and is also an established private residential enclave and one with amenities such as wet market, shopping malls, schools etc. The demographic trends will also affect the value of the property and thus should be considered as well. Other important factors to be considered include surrounding facilities, tenure, condition, and age.
Minimal Effect on Upmarket Districts
- In general, MRT stations result in increased value of property within a neighborhood since property sellers raise their expectations when such projects are announced. This effect is usually felt on rent rates. When the MRTs are under construction, the value is normally lesser and that is the right time to buy. Once construction is complete, the price rises and the property value increases.
- It is also important to consider the ease of transit to MRT when buying a property. Those property owners who are situated a km from the MRT will benefit more if their properties are located near bus networks as well. Furthermore, routes that enjoy a number of buses plying the same 1 km distance will get more benefits when compared to those routes that have a single feeder bus.
- The effect of MRTs is minimal when it comes to upmarket districts such as District 9, 10 and 11. They however add the most value when directly connected to those properties that are pure occupational zones. For instance, Jurong Lake District, regarded as the second Singaporean CBD in the near future. Generally, units located with the Core Central Region (CCR) are already highly priced based on their prime location. Furthermore, such areas enjoy a network of high density MRT lines and bus lines that lead to the city centre. As a matter of fact, most of the regions situated within CCR have other travel routes connected to some other parts of the island.
In simple terms, a MRT station will bring value to property situated far away from the city centre. The MRT in essence provides the main and fastest mode of transport to the city centre and some other parts of the island. It caters for the transportation needs of the residents and thus areas that are connected to these stations get more demand.
Some of the disadvantages associated with MRT stations may include noise pollution in those areas that have above ground stations. For instance, areas situated along North-South and East-West lines. This may make property within these regions less desirable.
Future Prospects of MRTs in Singapore
- Most of the MRT lines are set to be completed by 2030 and it is expected that by that time about 90% of Singaporean household will have a station within 10 minutes walk from their doorstep. Those who enjoy travelling around the island will benefit immensely from this development since it will become a breeze to travel around the beautiful areas of Singapore.
- Both the investor and the residents will benefit from the development of MRT stations in the region. MRTs bring in huge benefits including a high quality of living which is desired by every resident.
The upcoming MRT stations will have a huge impact on the Singaporean property market. Prices and rent gradients for property at CBD and outskirts will most likely flatten and homebuyers and renters will get more options that cater for their housing needs. Furthermore, the value of property is expected to increase for those units situated near MRT stations. Nonetheless, areas that lack other amenities or are not distinct in nature may feel minimal effect of the MRTs. Some of the areas that will benefit most from the MRT stations include district 15, district 16 and River Valley developments. In fact, renters and buyers have already thronging these areas. Watch out for Siglap Residences price near to Siglap MRT in district 15. Selling in 2017, Seaside Residences price will have to be strategized competitively as there is 6 years gap prior to Siglap MRT completion in 2023.