Although Singapore is considered well-connected in comparison with most global cities, the need for greater connectivity never ceases to exist. The continued growth of her population is one factor that makes it so.
Public housing projects are built further and further away from the city centre. There are currently 26 town developments around the island and businesses are finding ways to cohabit with residential enclaves, bringing more vibrancy to the suburbs. The Land Transport Authority (LTA) has in fact planned to have 8 in 10 homes within a 10-minute walk of an MRT station by 2030.
The recent opening of another 16 stations on the Downtown Line (DTL3) brings greater transport connectivity to residents of the North-west and Eastern regions. And also greater premiums to properties along the train tracks.
While those who live near the train tracks have to contend with the construction noise and dust for a few years, there are benefits that come perhaps a little later. Buyers of HDB flats will know that the valuation of their property will include the distance between the flat and the nearest MRT station. That will be computed into the final valuation price. Recent studies have found that the average housing resale prices are inversely proportionate to the distance to MRT stations. The same studies reflected a 2.2% positive price difference in resale HDB flats near the East-West and North-East lines.
Valuation of property includes proximity to transport nodes
In other countries such as Hong Kong and Chicago, the mere announcement of new train lines have resulted in higher housing prices. As most Singaporean property buyers tend to have the long term in mind, they are often willing to accept a limited period of inconvenience such as living with construction noise and dust. HDB resale flat prices have increased starting as early as from time of announcement to the construction and completion of the train lines and stations.
As Singapore moves well into the 21st Century and more plans are made to expand the MRT network, this will be good news to property owners and sellers.