PRICES of homes near the future MRT stations in the east are set to rise markedly, although the full gains will be realised only as the new line nears completion, consultants say. Executive Condo which are near MRT include The Brownstone EC and Skypark Residences which are both walking distance to Canberra MRT and Sembawang MRT station respectively.
In the short term, however, rents may take a hit from noise, disruption and privacy issues caused by construction, said SLP International research head Nicholas Mak.
Still, some property owners may increase their asking prices by 5 to 10 per cent over the next few months, he said.
Prices of private homes in Amber, Marine Parade and Bayshore could rise as much as 15 per cent by 2023 when the first stage of the Thomson-East Coast Line (TEL) is due to be completed, said R’ST Research director Ong Kah Seng.
Likewise, Housing Board areas in Marine Parade and Bedok South are expected to see price rises after the MRT line is completed, said OrangeTee head of research Christine Li.
She expects HDB flats in Marine Parade to benefit the most.
“Most of the housing along the Thomson-East Coast Line are private residential projects, and it is likely that current residents in the area travel by private transport.”
Once new MRT station locations are announced, there is generally a quick 5 to 10 per cent rise in prices for homes up to 400m from the stations, said Chestertons managing director Donald Han. Prices often then stabilise during construction, before gaining another 5 to 10 per cent the year before completion, he said.
“We saw this when the Thomson Line stations were announced, but that coincided with a general rise in property prices… the initial uplift could be marginal in this flattish market,” he said.
Colliers International research and advisory director Chia Siew Chuin noted that given both HDB and private homes in district 15 already have a premium factored into their prices because of their coastal location and expressway links to the central business district, there is a limit as to how much additional premium the new MRT line can command.
“As the projected completion of the TEL line is expected 10 years from today when the MRT network islandwide will be more extensive, the increases are not expected to be as steep as in the past when there were fewer MRT lines on the island.”