Should you buy a property near a
The closer a particular property is to the MRT station in Singapore, the more premium price it will have. At an average, those properties that are close to an MRT station are worth around 10%-15% more than properties which are located away from the stations. There is a reason behind why such properties are more valuable and why purchasing such properties is better. We called it the MRT Effect!
Firstly, having an MRT line near the property improves the overall accessibility and also adds convenience for all the residents of a neighborhood. In the case of a downturn, properties near the MRT will successfully hold a better value and during the period of a property boom, such properties will experience better price appreciation. Whenever there is a new MRT Station added to an area, the properties around would usually appreciate in price instantly.
Of course, you can’t deny that having an MRT nearby provides convenience; however, you should not put great emphasis on how close a property is to an MRT while evaluating a property’s worth. There are a number of other various factors that also affect the price of a certain property.
Being close to a station could also mean that the residents would have to deal with the noise pollution caused by the noise of the track from stations above the ground. This can have an adverse effect on how much the property is desired by individuals.
Another important factor to take into consideration is how easy it is to transit to an MRT near your property. People believe that with a greater number of MRT stations, the effect of the MRT might decrease. However, it is also possible that the development of properties near one or more stations can increase its demand.
How high the price of the property can go is also greatly dependent on amenities around a certain property at a particular time period. The closer the property is to the CCR – Core Central Region, the lesser probability there is that the MRT will have an effect on the value because the particular property has already been priced by its location. Additionally, properties that are closer to the CCR are connected much better through a dense network of bus networks and MRT which leads to the city center. So, the addition of another MRT on such routes would be meaningless because of the other routes available for traveling to places.
Additionally, in order to determine whether it is better to purchase a property near the MRT, the demographic of the buyer also needs to be considered. Properties near CCR are usually favored by wealthier people that prefer to reside in private housing. Such people also have their own transport, a car or more, in the house which means that such people would hardly appreciate the importance of having an MRT close by.
The recent launch of Forest Woods which sold more than 330 units of it’s 519 units during its 1st 2 days of launch had shown that properties within walking distance to MRT Station is in high demand and thus able to command a better price in the resale market in future.
On the other hand, the value of the MRT station increases as the distance from the city center increases. MRT is usually thought to be fastest and main method of transportation from and to all of the other areas of the island. Thus, residents living in such areas sought close proximity to the MRT. So, keep these things in mind when deciding to invest in a property near an MRT station in Singapore.
You can refer to the above 2016 updated MRT and LRT Map and start planning which MRT station you want to stay near to.
There are quite a few new condo launch in 2017 which is near to an MRT Station. You can click to the following launches like Grandeur Park Residences at Tanah Merah (District 16), Seaside Residences at Siglap (District 15) and The Clement Canopy at Clementi (District 5)