Straits Times: Fri, Aug 31
PRICES of homes near the newly announced Thomson Line MRT stations are set to get a lift, especially as completion draws closer.
However, as Singapore grows increasingly connected, the boost to prices may be more muted than for earlier MRT lines, experts say.
They say residential projects within a 500m radius of stations will benefit. But prices are not expected to rise immediately as the line is due to be fully ready only in 2021.
Certain homes badly hit by construction works might also see a temporary dip in prices of between 5 to 15 per cent, some experts say.
Ms Chia Siew Chuin, Colliers International's director of Research and Advisory, said homes close to the new stations could enjoy a premium of about 10 to 30 per cent, depending on how close they are, and market conditions.
"The MRT station effect on prices is expected to be more significant for homes located further away from town, in areas where... public transportation is an important means of getting around."
Mr Png Poh Soon, head of research at Knight Frank Singapore, said historical trends show that homes near completed MRT stations tend to command a premium of 10 to 15 per cent above those further away.
For instance, homes within 500 m of Lorong Chuan MRT station saw average prices in the six-month period before completion jump 22 per cent compared with the six months after. Homes further away rose 14 per cent.
Private home prices near Farrer Road MRT station have also risen an average of 7.6 per cent since the start of last year compared with a 2 to 3 per cent rise for others further away, Mr Png noted.
Ms Chua Chor Hoon, DTZ head of Asia Pacific Research, said that prices are unlikely to rise significantly as a result of Wednesday's announcement as the benefits can be fully reaped only in 2021.
Meanwhile, a resident will still have to suffer the construction inconveniences.
But interest will pick up just before completion and prices will rebound, Ms Chua added.
"Areas further up north from Woodlands to Upper Thomson will see a greater increase in prices as they benefit most from the reduction in travelling time to town."
However, with many parts of Singapore covered by the MRT network and expressways - including upcoming ones like the Eastern Line and the North-South Expressway - the boost to home prices will progressively be less pronounced compared with earlier days when there were far fewer properties close to MRT stations.
Mr Nicholas Mak, SLP International's head of research, noted that not all residential projects close to North-East Line MRT stations saw larger price gains when details of the line were first announced in 1996.
Projects near Kovan and Woodleigh posted similar price gains compared with the rest of the nation while the HarbourFront area saw average prices rising 13 to 25 per cent in the 14 months after the announcement compared with the same period before, Mr Mak said.
While values and asking prices are not expected to drop during the construction period, rentals may fall slightly by about 5 per cent owing to the noise, dust and inconveniences.
But the drop is short-term and rents will start to recover about six to 12 months before the completion of the stations, he added.
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