In the resale HDB flat market, location plays a large part in the pricing of a property. Thus, it is not surprising when units near transport nodes such as MRT stations or bus interchanges fetch high prices. However, in some occasions, these units could fetch lower-than-usual prices. Why?
HDB resale flats near transport nodes fetch varied prices
Flats which are located near MRT stations could be advantaged but also disadvantaged as their proximity brings with it a higher noise level. This applies in particular to the above-ground stations.
In a recent study, noise pollution has been found to adversely affect the prices of properties. In the resale HDB flat market, prices of units directly facing MRT tracks have been found to be 22% lower than that of units facing away from the tracks. Expressways are another source of noise pollution and while they provide accessibility, the noise they create could also affect asking prices.
Property analysts say that some of these units which could be facing main streets or above-ground MRT tracks could end up taking longer to find buyers. Sellers may even have to end up lowering prices.
Condominium prices seemingly not affected by noise pollution levels
Prices of private condominiums, however, do not seem to be significantly affected by noise pollution levels as a study conducted between Jan 1, 2014 and Oct 23, 2019 showed. Out of the 14 condominiums involved in the study, only 4 showed lower transacted prices of noise-facing units.
While buyers are usually averse to noise from expressways, analysts say other market trends and influences such as location are still more likely to affect prices. The conveniences of a good location and accessibility to transport could still trump the inconveniences they come with. Some property agents have cited the examples of properties with good views facing expressways selling well despite the issues of noise and dust.