The Impact of MRT on Singapore Property Prices
Singapore MRT Map June 2015
This article reveals the general impact of MRT on property pricing in Singapore - The MRT Effect
The introduction of Mass Rapid Transit (MRT) in Singapore during the 1980s definitely have positive impacts on Singapore property prices and further improves the public transport system and lessens the infamous peak hours bottleneck.
In Singapore, as well as other major city in the world, the MRT train system has a major benefit for real estate investors and home buyers and that is - it ignites a huge capital appreciation and potential rental yield of properties because of its convenient location to major important hubs in this tiny state. And this is because it would be more convincing for buyers to purchase new condo near MRT stations following the rise in fuel cost and its hikes on all sides due to rapid rise of inflation and Certificate of Entitlement (COE) for private cars.
The closer a property is to a MRT station, the more it will attract premium pricing. On average, properties near MRT stations can be valued at least 16% more than those that are further away and this is due to improve accessibility and added measures of convenience for dwellers around the neighborhood. In fact, properties close to a MRT station will largely be able to hold its worth better during a recession and also enjoy enhanced price rise during a property boom. Property investors who are more forward thinking will start to look at new launch projects where forthcoming MRT stations will be constructed. These sites are characteristically less costly before the MRT stations are completed due to its inconvenience caused during the construction period, and will see a steady upsurge in worth over time.
Properties near MRT Stations are always in High Demand
With the obvious convenience an MRT line brings, the issue of how high prices can go will also be dependent on the facilities around the project at that definite point in time.
Property investors should also observe the future Master Plan from the Urban Redevelopment Authority (URA) for an area as much as other variables, anticipating the kind of residents who might live in the area and the surrounding lifestyle to decide the investment potentials.
As more MRT stations are built, there is also likelihood that developments in estates where there are several MRT stations nearby will experience higher demand. Proximity benefits from two MRT lines increases the transport options for homebuyers or investors and thus will surely impact and drive the prices of these developments.
As the MRT is seen as one of the main and quickest form of public transportation to other areas of the city, it is therefore important for the dwellers in these area and thus nearness to a MRT station becomes hugely sought for.
Singapore MRT Map in early 90s
Singapore MRT Map Oct 2016
MRT Stations near Upmarket Districts have Minimal Impact?
In essence - MRT stations are avenues for a raise in adjoining property values, as property sellers are apt to raising their projections when announced.
And one major cause for this as observed is RENT. During the construction phase, VALUE may be lesser and is the best time for an investor to buy, and once construction is finalized, price quickly rocks the roof and the smart wise early buyers end up benefiting in the higher rental fees and huge appreciation on the property value.
Although it is also assumed or found that for upmarket districts such as District 9, 10 and 11, the presence of a MRT station makes no much difference as it has quite a minimal impact. By and large, MRT stations add the most to market value when they are situated directly to key occupational zones such as the Jurong Lake District, which is touted as the second CBD of Singapore in future. And at such, most property developers are already aware where the MRT stations will be and will go all out of their way to buy land near these areas.
Within 10 Minutes Walk to Nearest MRT Station by 2030
With the majority of new MRT lines to be completed by 2030, it is expected that around 90 percent of households in Singapore will be within 10 minutes walk to any of the station nearby. And for the convenience of inhabitants traveling around the island, this development should be celebrated, as this is surely what the anticipated public transportation system should be like in a metropolitan city like Singapore.
Definitely very soon, the MRT train system in Singapore will be able to match big capital city like London, and now is the time to wisely follow this path and begin to invest in these prospects as a property being next to the MRT station will mean so much in value and convenience to both investor and residents.
A viable city is one that offers a high quality of living for all its populations and which is exactly what MRT plans for Singapore is geared to achieve in the long run. Further than providing for serene physical surroundings, we also look in the direction of the provision of ease opportunities for all. The Land Transport Authority’s determinations to provide workable urban growth will not stop here, as these edges are part of a larger move en route for sustainability. As the global arena gears up for a change towards planning for more sustainable development in this phase, we are self-assured that Singapore’s principal structure and experiences thus far will enable us to take on the tasks ahead.
In conclusion – now is the moment to start preparing for such times as so you can benefit from the upcoming boom that will be of huge impact positively on your investments.