It was reported by Channel News Asia yesterday that according to market analysts, residential properties near the Thomson Line stations in Singapore could see a rise in prices of as much as 10 percent.
Although residents may have to endure inconveniences during the construction process, they can expect the value of their homes to rise once the stations begin to operate. Indeed, according to analysts, the prices of residential developments located near the Woodlands MRT station and the future interchange for the Thomson Line are expect to rise significantly.
It is also expected that estates to the north of the Thomson Line which currently have limited access to rail transport, such as the areas surrounding the Sin Ming, Mayflower, Springleaf and Lentor stations, will see housing prices rise somewhat. The research director of Colliers International, Chia Siew Chuin said:
For those areas that are more accessible and nearer to town, probably the impact is not so great because it is already so near to town. The fact that you are closer to town, and that is where our prime residential areas are located, public transportation may not be such a critical factor for residents in the area, compared to further outlying areas.
Although the prices of housing is set to rise, residents will first have to tolerate years of construction work, with some market analysts predicting a drop in rents between as much as 30 and 50 percent. That said, this is not expected to generate too much pressure on sales prices.
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, said Christina Sim, the director of the residential department of Cushman and Wakefield.
Whilst prices are set to rise, property owners will have to be patient while waiting to enjoy the full benefits of the Thomson Line, since it is expected that the three construction phases will not be completed until some point between 2019 and 2021.