Now that everyone is saying that property prices are at its peak, so why are there still so many buyers rushing in for the new launches? To better answer this question, let’s take a quick recap on the exciting announcement by LTA on the confirmed stations of Downtown Line and also Thomson Line just this year (2012).
Refer to the future Singapore MRT map (some unannounced as of this writing) for your privileged use as readers of SGRealist. 😉 I believe the property growth potential will be in these locations as these estates will benefit the most from the improvement of its accessibility to rail transport. And apparently, I’m not the only one who thinks so…
“I would expect just a 5 per cent downward pressure. This is when the construction starts. But if they wait out the five to seven year period, and wait for the MRT to come on, I think the benefit will be more than 50 per cent – the increase in price.” -Christina Sim, director, Residential, Cushman and Wakefield
What is the Downtown Line?
The Downtown Line will be Singapore’s fifth Mass Rapid Transit line. When completed by 2017, the 34 stations (constructed over three phases) are expected to serve about half a million commuters daily.
Stage One involved the stations of the original Downtown Extension, running 4.3 kilometres from Chinatown to Bugis. It will consist of six stations, (Bugis, Promenade, Bayfront, Landmark, Cross Street and Chinatown) and is scheduled to open in 2013.
Work on Stage Two started in 2009, covering 12 underground stations over more than 16 kilometres. When completed in 2015, Downtown Line 2 will run from Bukit Panjang (Petir), and end at Rochor Station.
Tunnelling works on the final 21-kilometre stretch of Downtown Line 3 started in July 2012. The line of 16 stations will run almost parallel to the East-West Line, and upon completion, link Expo in the East, to Bukit Panjang, with a loop through Marina Bay. It is expected to be completed by 2017.
Where is the Thomson Line?
The Thomson Line (TSL) is a 30km underground train line that is expected to be fully completed in 2021. The sixth MRT line will have 22 stations and 6 interchange stations which will link to the East-West Line, North-South Line, North-East Line, Circle Line and the future Downtown Line.
Commuters can start enjoying the TSL from 2019 when the first stretch (three stations from Woodlands North to Woodlands South) will be completed. The second stretch (six stations from Springleaf to Caldecott) will be completed in 2020 and the final stretch (13 stations from Mount Pleasant to Gardens by the Bay) in 2021.
An estimated 400,000 commuters can look forward to MRT stations at their doorstep. They will enjoy savings in travelling times. For instance, a resident travelling from Sin Ming to Republic Polytechnic will have his journey time reduced by half, from 50 minutes to 25 minutes. And residents from Springleaf Estate in Sembawang will only need 35 minutes to travel to the Great World City shopping mall, instead of the current 60 minutes.
For more on the announcements of Thomson Line or Downtown Line by LTA, you may want to read here.
Future Singapore MRT map
Looking at the future Singapore MRT map, there are many gems to be discovered. Residential properties near the Thomson Line stations have seen an initial rise in prices of up to 10 per cent, according to analysts.
While residents may have to tolerate inconveniences during construction, they can expect to see further upside to their home prices when the stations start operations. Prices of residential developments near the Woodlands MRT station and the future interchange for the Thomson Line are set to see a surge in prices, according to analysts.
Home prices in estates that are up north along the Thomson Line, which now have poor access to rail transport, including areas surrounding the Lentor, Springleaf, Mayflower and Sin Ming stations, have rose, following the announcement by LTA. For example, the new launch – Thomson Grand at 23 Sin Ming Walk – was initially sold at around $1,100psf, was sold at the higher ends of $1,400psf for its last few units. If you’re thinking of buying a property there, Thomson Grand is 100% fully sold.
Another upcoming new launch that will potentially reap the benefits of high capital appreciation due to MRT lines constructions would be Liberte @ Sarkies Rd. Newton MRT will be one of the interchange for the Downtown Line, with shops in the underground Xchange connector and new exits that leads out directly to Liberte‘s side gate!! You don’t get to many (if any at all) FREEHOLD properties that has a gate that opens directly into any MRT, not to mention such a near town MRT like Newton station. An opportunity? Find out more here.