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Thread: Value of homes near Thomson Line set to rise

  1. #1
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    Default Value of homes near Thomson Line set to rise

    http://www.straitstimes.com/archive/...-rise-20120831

    Value of homes near Thomson Line set to rise

    But prices likely to go up only closer to MRT line completion in 2021

    Published on Aug 31, 2012

    By Esther Teo, Property Reporter


    PRICES of homes near the newly announced Thomson Line MRT stations are set to get a lift, especially as completion draws closer.

    However, as Singapore grows increasingly connected, the boost to prices may be more muted than for earlier MRT lines, experts say.

    They say residential projects within a 500m radius of stations will benefit. But prices are not expected to rise immediately as the line is due to be fully ready only in 2021.

    Certain homes badly hit by construction works might also see a temporary dip in prices of between 5 to 15 per cent, some experts say.

    Ms Chia Siew Chuin, Colliers International's director of Research and Advisory, said homes close to the new stations could enjoy a premium of about 10 to 30 per cent, depending on how close they are, and market conditions.

    "The MRT station effect on prices is expected to be more significant for homes located further away from town, in areas where... public transportation is an important means of getting around."

    Mr Png Poh Soon, head of research at Knight Frank Singapore, said historical trends show that homes near completed MRT stations tend to command a premium of 10 to 15 per cent above those further away.

    For instance, homes within 500 m of Lorong Chuan MRT station saw average prices in the six-month period before completion jump 22 per cent compared with the six months after. Homes further away rose 14 per cent.

    Private home prices near Farrer Road MRT station have also risen an average of 7.6 per cent since the start of last year compared with a 2 to 3 per cent rise for others further away, Mr Png noted.

    Ms Chua Chor Hoon, DTZ head of Asia Pacific Research, said that prices are unlikely to rise significantly as a result of Wednesday's announcement as the benefits can be fully reaped only in 2021.

    Meanwhile, a resident will still have to suffer the construction inconveniences.

    But interest will pick up just before completion and prices will rebound, Ms Chua added.

    "Areas further up north from Woodlands to Upper Thomson will see a greater increase in prices as they benefit most from the reduction in travelling time to town."

    However, with many parts of Singapore covered by the MRT network and expressways - including upcoming ones like the Eastern Line and the North-South Expressway - the boost to home prices will progressively be less pronounced compared with earlier days when there were far fewer properties close to MRT stations.

    Mr Nicholas Mak, SLP International's head of research, noted that not all residential projects close to North-East Line MRT stations saw larger price gains when details of the line were first announced in 1996.

    Projects near Kovan and Woodleigh posted similar price gains compared with the rest of the nation while the HarbourFront area saw average prices rising 13 to 25 per cent in the 14 months after the announcement compared with the same period before, Mr Mak said.

    While values and asking prices are not expected to drop during the construction period, rentals may fall slightly by about 5 per cent owing to the noise, dust and inconveniences.

    But the drop is short-term and rents will start to recover about six to 12 months before the completion of the stations, he added.

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  2. #2
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    Default Property prices to ride high on Thomson Line

    http://www.businesstimes.com.sg/arch...-line-20120831

    Published August 31, 2012

    Property prices to ride high on Thomson Line

    Consultants expect a jump in prices of developments close to upcoming stations

    By mindy tan and felda chay


    [SINGAPORE] Residents in the northern region of Singapore can expect the announcement of the upcoming Thomson MRT Line to boost property prices almost immediately, say consultants, although they differ on the extent of the rise.

    Savills research head, Alan Cheong expects residents living in the Springleaf, Seletar, and Lentor area to see the most benefit from the Thomson Line given that they are currently underserved by the public transport system.

    "Homes in the Springleaf/Springside area will see prices rise by 10 per cent at least. Prices will move, starting now; we do not have to wait until the line is completed before prices go up. They will usually move for a few months and then stabilise," said Mr Cheong.

    Broadly speaking, consultants BT spoke with expect home prices to spike closer to the completion of the line.

    According to HSR's senior manager for investment sales, Gabriel Goh, properties near the planned MRT stations might see a gradual increase of 3-5 per cent in the short term, and later enjoy a 20-30 per cent premium over properties that are not as close to the stations.

    Senior manager for training, research and consultancy at DWG, Lee Sze Teck expects a near term price increase of 5-10 per cent, with a price appreciation in the range of 20-30 per cent when the MRT line is completed.

    That being said, prices of properties close to major construction work sites may take a momentary dip to the tune of 5-15 per cent, said DTZ's head of Asia Pacific research Chua Chor Hoon.

    "Otherwise, we do not expect any adverse impact on prices on other properties along the route. Even if there is road diversion... owners will (likely) hold out for better prices later," she said.

    Ms Chua said she expects the area spanning Woodlands to Upper Thomson to see the largest increase in price given that they benefit most from the reduction in travelling time to town.

    The Thomson MRT Line will be launched progressively in three stages from the north to the south, with three stations from Woodlands North to Woodlands South ready by 2019, six stations from Springleaf to Caldecott ready in 2020, and 13 stations from Mount Pleasant to the Gardens by the Bay fully operational by 2021.

    Ong Teck Hui, executive director of Credo Real Estate, which will be part of Jones Lang LaSalle (JLL) on Sept 1, noted that while properties impacted by the construction may suffer in the short term, owners of properties in the vicinity not affected on the other hand, may leverage on future proximity to the MRT as a selling point, and ask for a premium for their properties.

    Indeed, properties and projects near train stations tend to do fairly well in terms of rental opportunities, pointed out JLL's head of South-east Asia research, Chua Yang Liang.

    "By and large, the difference in value between homes located near train stations, and those located further away tend to differ by between 5-10 per cent, although a lot also depends on the property itself - the kind of property we are talking about for instance, and the amenities in the area," said Dr Chua.

    However, there may eventually be less disparity in prices in different parts of Singapore as the transport network improves connectivity and reduces travelling time, said DTZ's Ms Chua.

    "The uplift on prices will progressively be less pronounced compared with in the past when there were much fewer properties that enjoy proximity to MRT stations," she said.

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