MRT Effect on Property value
Whenever you visit a property website or receive a newsletter about a brand new launch in Singapore, one of the first things most of these publications mention is how close the development is to an existing MRT Station or future MRT Station. Logically, this should lead one to assume that MRT stations should positively affect property prices—why else would property sales publications like to mention them in bright red text?
As it turns out, having an MRT station (or in a substantial handful of cases, a future MRT station) isn’t always seen as a positive. There are several essential questions you have to ask about the MRT station in relation to your property to determine its value.
Is It Under Construction?
The MRT is a very fast and efficient public transport that is able to reach almost anywhere in Singapore. Coupled with the frequency of the trains, having an MRT station makes it very convenient for a homeowner to travel anywhere else in Singapore—and mostly in under an hour too. Having an MRT station under construction near the estate, however, does not bring these transportation privileges to homeowners until the MRT station is completed. Therefore, an announced MRT construction project may bring a future appreciation in a property’s price, but a newly-announced MRT station generally does not cause property prices to spike. To the contrary, an it may sometimes cause property prices to drop especially when the construction is ongoing and brings about air and noise pollution to the vicinity.
You’ll often see a property promoted as being less than 1km, 800m or 500m away from an MRT station, but sometimes just because a property is below a certain distance to an MRT doesn’t mean it is convenient to get from a home to the station. These distances are usually measured on a map in a straight line, but its often not possible to walk in a straight line from a home to the MRT station due to the many urban developments in the country. You may have an MRT station 500m away from your home, but you may practically have to travel about 1-km to your MRT station because of how the roads in your estate are designed. It is imperative that the actual walking duration was be manually tested out the specific route taken. This will be the best gauge.
It is important to have an Mrt Station nearby the property. Understand too the importance of the station and how it is connected to major transport nodes and hubs. For example, Alex Residence is a comfortable 6 minute walk to Redhill station, 3 stops to Tanjong Pagar station, 4/5 stops to Raffles Place and City hall interchange stations. Lastly, be sure to test out the walking distance from the development to the station itself while factoring your specific block to the entrance.