Properties near MRT stations to remain popular despite disruptions

The top story dominating the news this past week has not been the shirtless guys promoting Abercrombie & Fitch, but the frequent MRT disruptions that affected thousands of commuters, leaving many stranded and angry. It even forced the emergency evacuation of people trapped in the trains.  

The breakdowns were so serious that Prime Minister Lee Hsien Loong has called for a full inquiry to investigate the matter.
 
Whatever the outcome, it does raise the question about whether living next to an MRT station is such an advantage.

After all, homes located nearby are more expensive. According to property agents, HDB flats cost S$10,000 to S$15,000 (5 to 15 percent) more if they are close to an MRT station. As for private homes, it ranges from about S$20,000 to S$50,000 more.

Apart from the higher price tag, there’s also the railway noise from the comings and goings of trains that have affected residents living close to MRT viaducts for years.

Despite these negatives, there are a number of benefits to living near an MRT station.

For example, such homes are easier to rent out and are highly sought after by expats who do not own cars as it enables them to commute easily to work, run errands and enjoy a night on the town.

As for property sellers, they can expect to fetch higher prices for their homes if they are located close to MRT stations. Another important point is that amenities such as schools and shopping centres are usually nearby.

In addition, properties close to MRT stations are good long-term investments. Experts will tell you that nearby condos could appreciate in value by 20 to 30 percent.  

With this in mind, I believe that properties located close to an MRT station will remain attractive to potential buyers and tenants, even if the disruptions continue. But fingers crossed it doesn’t happen again!