Perks and convenience of homes near MRT stations

Recently, two property developers were in the spotlight for including the unofficial future MRT station locations in their advertisements on condominium.

The incident clearly brought out the quality of housing developments situated near MRT stations.

Property agents say such location has myriad benefits, and buyers can look forward to pay considerably more for such properties.

ERA Asia Pacific associate director, Mr. Eugene Lim said, “Singapore has a very comprehensive MRT network which is constantly being expanded, and being near an MRT station will reduce travelling time.” He also said that this will contribute in the drawing power of such properties to tenants and owner-occupiers.

Property agents The Straits Times announced that buyers can anticipate paying a $10,000 to $15,000 premium, or the purchase price of 5% to 15%, for HDB flats situated near MRT stations. This premium for private properties ranges from about $20,000 to $50,000. The premium is not just based on convenience; there are other several long-term benefits provided with a location nearby MRT station.

Propnex property firm spokesman, Mr. Adam Tan said the flats are definitely easier to rent out if near MRT stations. He also noted that over 50 percent of Non-Singaporeans working in the country make up the rental market and that for them ‘public transport is key’ instead of having to purchase a car.

Properties situated near MRT stations also have a higher resale value. Coupled with the reality that a number of MRT stations are situated in the middle of town centres, it is not surprising that properties near these stations command higher premiums and are more popular.

'Other amenities such as shopping malls and offices near the MRT station will definitely drive up demand and price,' said Mr. Tan.

ERA’s Mr. Lim mentioned that a property within five to eight minutes walking distance of Tampines Central, where Tampines MRT station is located, would easily hold a $20,000 resale value more than a property of the same age situated in a more remote area of the estate.

In addition to incidental benefits that are accompanied with convenience, buying a property near an MRT station also provides a sound investment decision.

As an example, Mr. Tan cited the Astoria Park, which is located close to the MRT station in Kemabangan, whose value is likely to significantly appreciate. In the past six months, units there were purchased for approximately $630 psf and now are priced about $750 psf. Prices of same developments near MRT stations should appreciate by about 20% to 30% over the next ten years.

All the agents that The Straits Times have spoken agreed that regardless of the condition of the market, demands for properties situated near MRT stations will always be there.