New line set to boost property prices

Property agents say the opening of MRT stations along Phase 2 of the Downtown Line, connecting Bukit Panjang to Rochor will lead to a surge in property prices, particularly in the outskirts of Singapore.

HBD flats in Bukit Panjang have seen at least a 10 percent increase in their cash-over valuations (COV) amount in the previous year, with the MRT station in the area scheduled for launch in 2015, several real estate agents told my paper.

Property agent Jenny Lee said COVs have nearly doubled in the previous year, from $25,000 to $40,000. She noted that the highest COV request she has recently seen stood at $120,000 for a flat with five rooms.

“Bukit Panjang used to be an area that we would encourage people with a lower budget to consider, as prices were relatively cheaper,” said Lee to my paper. “People used to think it's out of the way. It has become a hot spot now, with the upcoming MRT station.”

Another real estate agent, Sylvia Teo, said that property prices in areas that will have MRT station nearby have generally increased, with the most major hikes seen in areas earlier regarded as inaccessible to those who depend on public transport.

For instance, Ms. Teo has not seen an increase in clients who ask for private property in places like Hillview and Cashew, though the Downtown Line will pass across the vicinity.

On the contrary, HDB estate in the Bukit Panjang is becoming a hit for property buyers, sellers and agents. Ms. Teo noted she now gets over 20 clients per month asking for flats in the area, compared to approximately five per month in the past.