ANALYSIS: Condos that will benefit from completion of Thomson-East Coast Line Stage 4
By Elizabeth Choong
/ EdgeProp Singapore |
Condos in Tanjong Rhu are expected to benefit from the opening of Tanjong Rhu MRT Station. (Photo: Samuel Isaac Chua/EdgeProp Singapore)
SINGAPORE (EDGEPROP) - Stages 1 to 3 of the Thomson-East Coast Line (TEL), linking Woodlands North to Gardens by the Bay, have been in operation since the TEL started opening in stages from 2020. In addition to bringing more convenience to commuters living and working near these MRT stations, the completion of these stations is also expected to spur new developments in the vicinity.
Stage 4 of the TEL is slated to open in the first half of this year. Stage 4 features eight stations from Founders’ Memorial to Bayshore. However, Founders’ Memorial MRT Station will open after the development of Founders’ Memorial, so it will not open at the same time as the other seven stations. Stage 4 of TEL is expected to be a game-changer because the East Coast is currently underserved by the MRT network. We explore the potential impact of the upcoming TEL on nearby condo developments.
Tanjong Rhu MRT Station: Surrounded by older leasehold condos
There are a total of seven condos with 2,048 units within a 500m radius of Tanjong Rhu MRT Station. There are no HDB flats or landed homes within the same distance. The opening of the MRT station will bring much convenience to the residents because it is the only MRT station in the vicinity.
Read also: One Meyer hits new high of $2,934 psf
With the exception of the freehold Parkshore, the condos are 99-year leasehold developments. The newest condos are Water Place (TOP in 2004), Sanctuary Green (TOP in 2004), and Camelot By-The-Water (TOP in 2000). The remaining four condos received their temporary occupation permit (TOP) in the 1990s.
Based on sales transactions from last year, Camelot By-The-Water has the highest average price of $2,017 psf, but it is based on only two transactions. Sales volume is the highest for Water Place (22 transactions), Pebble Bay (17 transactions), and Sanctuary Green (11 transactions).
Pebble Bay and Water Place are located next to the MRT station, which could have given a boost to their sales volumes. Sanctuary Green is adjacent to Water Place. Furthermore, these three condos are the largest developments within a 500m radius of the MRT station. Sanctuary Green features 522 units, while Pebble Bay and Water Place feature 510 units and 437 units, respectively.
Source: EdgeProp LandLens (as at 15 January 2024)
From 2013 to 2023, the average resale price for leasehold condos in the Kallang Planning Area increased by 28% to $1,668 psf. Price growth for Water Place (24%) and Pebble Bay (22%) has kept pace. Last year’s average resale price for Pebble Bay ($1,735 psf) was $97 psf higher than Water Place ($1,638 psf), which is notable because Pebble Bay (TOP in 1997) is older than Water Place (TOP in 2004). This could be because Pebble Bay is located adjacent to the Kallang River, thus offering residents unblocked water views. However, Water Place is some distance away from the river.
The average resale price for Pebble Bay has surpassed that for the Kallang Planning Area since 2019. In contrast, the average price for Water Place has remained below the average price for the planning area. It might indicate that Water Place could be undervalued and hence a worthwhile consideration for buyers who are willing to forgo water views as well as overlook the age and tenure of the condo.
Katong Park and Tanjong Katong MRT Stations: New condos galore
Katong Park and Tanjong Katong MRT Stations have a number of newly completed or soon-to-be-completed condos nearby. The freehold One Meyer is located across the road from Katong Park MRT Station, while the 99-year leasehold LIV @ MB is slightly further away. One Meyer obtained its TOP last year, while LIV @ MB is expected to obtain TOP this year.
Despite their proximity to each other, both developments have several differences. Although both condos are located in District 15, One Meyer is in the Marine Parade Planning Area, while LIV @ MB is in the Kallang Planning Area. Additionally, One Meyer is a boutique development with only 66 units, while LIV @ MB features 298 units.
Both developments are fully sold, albeit at different price levels, which could be attributed to their different tenures. One Meyer is a freehold development, while LIV @ MB is a 99-year leasehold development.
Last year, the average prices for One Meyer and LIV @ MB were $2,831 psf and $2,446 psf, respectively. Price growth since their respective launches is a marginal 6% for One Meyer and 1% for LIV @ MB. In contrast, the average price for condos in District 15 has grown by 29% since 2019 when One Meyer was launched and 15% since 2022 when LIV @ MB was launched. Despite the stronger price growth, the average price for condos in District 15 ($2,400 psf) is still below the prices of the two condos.
Coastline Residences and Amber Park are located within a 500m radius of Tanjong Katong MRT Station. Both developments are situated in District 15 and the Marine Parade Planning Area. Amber Park obtained TOP last year, while Coastline Residences is expected to obtain TOP this year. Coastline Residences is a smaller development with 144 units, while Amber Park features 592 units. Both freehold condos are fully sold.
Similar to One Meyer and LIV @ MB, average prices for Coastline Residences (6%) and Amber Park (5%) grew only marginally to $2,745 psf and $2,618 psf, respectively, since their launches in 2019. However, the price growths for Coastline Residences and Amber Park are in line with the price growth of 7% over the same timeframe for freehold condos in the Marine Parade Planning Area ($2,041 psf).
Source: EdgeProp Market Trends (as at 15 January 2024)
The marginal price growth for One Meyer, LIV @ MB, Amber Park, and Coastline Residences could be because the construction of TEL and the location of the stations were already announced when the condos were launched. As such, their launch prices would have reflected the convenience of having an MRT station within walking distance.
Bayshore MRT Station: Expect new and exciting developments
There is a government land sale (GLS) site near Bayshore MRT Station. According to URA, the 0.98-ha site can yield approximately 480 condo units. As the 99-year leasehold site is on the reserve list, it will not be made available for tender unless it is triggered.
The possibility of the GLS site being triggered is high due to the site’s excellent locational attributes, which include its close proximity to an upcoming MRT station and its location within the popular residential enclave of East Coast.
There are a total of 15 condos featuring a total of 2,859 units within a 500m radius of Bayshore MRT Station. Some of the larger developments include The Bayshore (1,038 units) and Costa Del Sol (906 units) in the Bedok Planning Area. However, the 15 condos are mainly older developments with an average age of 20 years. The lack of new condos in the vicinity should give a boost in demand for such developments.
Furthermore, URA announced that Bayshore will have 10,000 new homes, with 70% of them being public housing. The first two BTO projects for Bayshore are expected to be launched this year. Currently, there are no HDB flats within a 500m radius of the MRT station.
From 2013 to 2023, a price growth of 46% for new 99-year leasehold condos in the Bedok Planning Area was observed, which is weaker than the growth of 87% for similar condos in the East Region. Last year, average prices for condos in Bedok Planning Area and the East Region were $2,093 psf and $2,377 psf, respectively. The stronger price growth for the East Region is a good indicator of the prices that new condos in the Bayshore neighbourhood could potentially fetch.
Conclusion
New MRT stations bring extra convenience to residents living in the vicinity, which will inevitably boost demand and prices for existing condos. However, good bargains can still be found if the buyer is willing to make some compromises such as age of the development.
On the other hand, new MRT stations do not seem to have as much impact on prices for condos that were launched in the past few years. The convenience of having a nearby MRT station would have been factored into the launch prices for these condos, especially after the construction for the line commenced in 2014. However, the upcoming TEL might spur more interest from developers for sites in the vicinity of the stations.
Check out the latest listings for Pebble Bay, Water Place, One Meyer, Liv @ Mb, Amber Park, Coastline Residences properties
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