MRT started in the 1980s and has since helped to reduce the typical rush hours bottleneck. As such, many prefer owning property near to an MRT station for the sake of convenience. However, it’s for a fact that property prices have been affected thanks to the MRT – the closer any property lies to the MRT, the higher the pricing it has.
Therefore, real estate properties close to the MRT have a premium value. On average, such properties cost 16% more than other properties found further from the MRT. During a property boom, they tend to increase in pricing. Besides, even during a recession, they still hold their worth. Forecaster investors are beginning to invest in areas where the MRT is most likely to be constructed. Such areas might not be on-demand at the moment, but will certainly see an upsurge once the line is constructed.
While the rise in price is true for properties near to train stations – it only makes sense due to the accessibility and convenience provided. Now, let’s take a closer look at how exactly MRT stations can affect property prices and rent.
Properties near the MRT line are always under a strong demand
The demand for properties near the MRT line is high, as many investors wish to buy and the working class need to rent. An MRT line brings huge convenience to an area, and this is what generates the high demand. However, prices are also subject to the facilities and social amenities around the area. More facilities and amenities will translate in higher prices. The increase in MRT lines equally translates into a faster transport network between neighbourhoods, which leads to an increase in pricing.
Since the MRT is by far the primary and fastest means of transportation among the cities and towns, the proximity to the line is sought after by homeowners and dwellers. The basic rule of thumb in real estate is to check on the location. It is by far the most important factor when searching for property.
The value of every location changes over time, as infrastructure improves. Previous areas that didn’t have the MRT line passing through them were not as expensive as they are right now.
Infrastructure and convenience
This is the second most important reason that shows how the MRT line affects property prices in an area. It is common knowledge that when the infrastructure of an area opens up, the prices and rents on properties shoot up. As an area becomes more accessible, so do the prices keep on going higher. The MRT line, having opened up several areas, has led to this increase.
Wrapping up, the expansion of the MRT line has led to an increase in prices and rents of properties. However, this might not always be the case. According to statistics and planning, it is expected that by 2030, 80% of households will be within a ten-minute walk to the train station. This implies that areas bordering the stations may no longer have a huge price tag as before. It also means that the new stations may not lead to an increase in property prices and rents.
Now, that you know how great of an impact MRT stations have on property prices and rent – it doesn’t mean that you should shy away from such properties. Instead, you should look for such property still and reap the benefits – be it as an investor or homeowner.
You could consider the condo in River Valley for sale, besides accessible transport, you’ll be able to enjoy various amenities and facilities within the condo itself. Specifically, the Starlight Suites price is a condo you can check out for its range of rooms which varies from a 1 Bedroom flat up to a 4 Bedroom Penthouse unit.
Meanwhile, there’s also the upcoming underground Great World MRT station that’ll be opening up soon at the Thomson-East Coast Line, along the boundary of Singapore River and River Valley areas once 2021 approaches. In other words, boasting even greater convenience for residents within the vicinity of Starlight Suites and River Valley neighbourhood, since it’s only a walking distance to the condo.