Living close to an MRT station is often cited as one of the top considerations when buying or renting a property in Singapore.
Apart from improving connectivity and shortening the commute to work and school, the presence of a nearby MRT station can help boost the value of your property. Experts call this the “MRT effect”.
For instance, private homes in Paya Lebar are able to command a price premium due to the presence of Paya Lebar MRT interchange, which connects commuters to the East-West and Circle lines.
In fact, average prices of private properties located within a 10-minute walk of most of the Circle Line stations like Paya Lebar have risen substantially since 2009.
According to latest data from the Urban Redevelopment Authority and PropertyGuru, average transaction prices of condos in Paya Lebar are currently above $1,300 psf, up from about $800 psf a decade ago.
“Prices of residential properties in close proximity to MRT lines generally have a premium uplift of 10 per cent or more as compared to others which are not,” said Tan Tee Khoon, Country Manager of PropertyGuru.
He added that a 2017 study published by the NUS Department of Real Estate found that residential properties within a 400m radius of the closest MRT stations could be priced at an average of 13.2 per cent higher than those further away.
New MRT line to serve over 100,000 households
Earlier this year, the government announced plans for Phase 1 of the Cross Island Line (CRL), comprising 12 MRT stations. Once completed in 2029, the 29km-long CRL1 will serve more than 100,000 households in areas such as Loyang, Tampines, Pasir Ris, Serangoon North and Ang Mo Kio.
While there are some important questions yet to be answered on the environmental impact of the CRL on our nature reserve, residents living near the underground MRT line will likely see their property values go up.
Seeing the potential for price growth, property agents marketing new launches near the CRL have been using it as a key selling point to attract home buyers and investors. The projects include Parc Komo near the upcoming Loyang MRT station, Affinity at Serangoon and The Garden Residences in Serangoon North, and The Florence Residences in Hougang.
Buyers and investors looking to purchase a new home within the vicinity of the CRL should act soon. The completion of new MRT stations will bring more buzz and hype, and we can expect new launch prices to increase.
Expat rental demand to rise
Properties nearer the CRL would also be more rentable as many expatriate tenants commute by public transport and want to live near an MRT station. This would also help to facilitate a car-lite society that’s in line with Singapore’s plan to reduce its reliance on cars.
Areas that would benefit the most from being near the CRL are those without an existing MRT station, such as Loyang and Serangoon North.
Loyang MRT station will be located along Loyang Avenue and near to Loyang Valley Condominium and Loyang Industrial Park.
Situated at the junction of Serangoon North Avenue 1 and Serangoon North Avenue 3, the Serangoon North MRT station will be close to amenities such as community centres and established schools like Rosyth School and the French School of Singapore.
The CRL will also improve accessibility to commercial developments, with Defu MRT station serving Defu Industrial Park while Aviation Park MRT station will be close to Changi Aviation Park.
Dealing with crowds and noise
Being near an MRT station does have its benefits, but there are a few downsides too. Some people don’t like the large crowds that an MRT station brings, opting instead to live in a quiet estate away from the hustle and bustle of urban life.
There’s also the inconvenience of construction work on the CRL1 which could take nine years to complete. In 2017, residents living near the Downtown Line 3 complained of noise from construction work happening in the wee hours of the morning and constant dust entering their homes. While the Land Transport Authority will look to minimise the inconvenience to residents, there will certainly be some disturbances.
The completion of the CRL may be many years away, but its important to take note of a few things. Homeowners living near one of the upcoming MRT stations may want to hold onto their property for the long term as prices are likely to rise. At the same time, buyers looking to purchase property close to the CRL should act soon or risk being priced out of the market.
Get to know What’s The Story Of The East-West Line? and also about Singapore’s First Ever MRT Line: The North-South Line.
To get more guides like this, check out PropertyGuru.