Cross Island Line Phase 2 to boost surrounding property prices
By Elizabeth Choong
/ EdgeProp Singapore |
Jurong Lake which is located near the upcoming Jurong Lake District MRT Station (Picture: Samuel Isaac Chua)
SINGAPORE (EDGEPROP) - Our survey on Connectivity and Convenience, conducted in June, clearly indicates that buyers are willing to pay more for homes with easy access to public transport. The addition of a nearby MRT station will not only improve connectivity for the neighbourhood but also give a boost to property prices.
The stations along the Cross Island Line Phase 1 and Phase 2 will be opened in 2030 and 2032 respectively. Current residents will have to put up with construction noise and dust before benefitting from the improved connectivity. This article examines the potential impact on properties located near the upcoming MRT stations on the Cross Island Line Phase 2 (CRL2).
The Cross Island Line (CRL) is the eighth MRT line and the longest at more than 50km. When completed, it will serve the east, west and north-east regions of Singapore.
The CRL will be constructed in three phases. Construction for the 29km Phase 1 (CRL1) has started and is expected to finish in 2030. Location of the six stations in CRL2 was just announced by the government and construction will start next year with completion targeted for 2032.
Two of the six stations (King Albert Park and Clementi) in CRL2 will be interchange stations. When completed, the whole CRL will provide commuters with more travel options as half of its stations will be interchange stations.
Location of the six CRL2 stations
The greatest impact is likely to be felt by properties near Turf City, Maju and West Coast MRT Stations because these three areas are currently under-served by the MRT network.
The two interchange stations on CRL2 (King Albert Park and Clementi) are in vibrant and busy neighbourhoods with strong MRT connections. The Jurong Lake District is slated to be a regional hub and the upcoming Jurong Lake District MRT Station will boost connectivity and accessibility to it.
Turf City MRT Station: Gateway to a posh enclave
The lease for Turf City (including The Grandstand) will end in December 2023, to make way for the construction of Turf City MRT Station.
There are currently no condominiums within a 500m radius of The Grandstand, but there are seven freehold condominiums with 2,274 units within a 1km radius. Among them, Maple Woods (697 units), The Cascadia (536 units) and The Tessarina (443 units) are the largest condominiums.
Royalgreen is the newest condominium; having obtained TOP last December. According to caveats lodged with URA, only 232 units in Royalgreen are sold, indicating a take-up rate of 81.4% at an average price of $2,787 psf.
The existing seven condominiums are located within walking distance to Sixth Avenue or King Albert Park MRT Stations on the Downtown Line (DTL), so they are not expected to experience much gain from the opening of Turf City MRT Station.
The upcoming MRT station is also near Good Class Bungalow (GCB) areas of Binjai Park, Swiss Club Road and Eng Neo Avenue.
The biggest change will come about after the closure of Turf City, which will free up large tracts of land in prime District 11. The land is expected to be for residential use, which presents an opportunity for developers to build exclusive luxury condominiums or landed homes that will be snapped up by buyers due to its prime location. Investors will also be interested because of anticipated rental demand from expatriate tenants due to the proximity of four international schools.
The land is likely to be divided out into different parcels and tendered out under the Government Land Sales programme, which means a land tenure of 99 years. This could be a drawback because surrounding condominiums are freehold. However, some savvy buyers may see it as an opportunity to purchase a property in a prime district albeit with a shorter tenure.
Maju MRT Station: Under-served no more
The area around Maju MRT Station is currently very under-served with no MRT stations with a 1km radius. When the upcoming Maju MRT Station opens, it will bring increased connectivity to the Singapore University of Social Sciences (SUSS), Ngee Ann Polytechnic and Maju Camp. Foodies will also be pleased with the easier access to the numerous eateries around Sunset Way.
Currently, there are no condominiums within a 500m radius, but there are five condominiums with 1,153 units within a 1km radius. Four of the condominiums are freehold while the fifth development – Ki Residences at Brookvale – is 999-year leasehold. Uncompleted Ki Residences at Brookvale is also the newest kid on the block and the largest with 660 units.
Ki Residences at Brookvale has the most to gain from the opening of the upcoming Maju MRT Station as it is the nearest neighbour. Based on URA data at the time of writing, only 637 units are sold (take-up rate of 96.5%) at an average price of $1,984 psf. The improved connectivity from the upcoming Maju MRT Station might attract more interested buyers.
There are a number of nearby empty land-plots that are subject to detailed planning under the Master Plan. However, these plots are likely to be designated residential use in line with the surrounding condominiums and landed homes.
West Coast MRT Station: Connecting an “ulu” area
West Coast is under-served by the MRT network with the nearest MRT station – Clementi – being more than 1km away. The upcoming West Coast MRT Station is located between three schools and near light industrial and warehouse areas in Pandan Loop.
Hundred Trees have the most to gain from the upcoming MRT station as it is the only condominium within a 500m radius. The 396-unit development obtained TOP in 2013 and has an average price of $1,548 psf.
There are a total of 10 condominiums with 5,077 units within a 1km radius. The newest developments are uncompleted Parc Clematis (1,468 units) and Whistler Grand (716 units) which obtained TOP this year. Both are 99-year leasehold developments. The only other 99-year leasehold development in the proximity is Regent Park (276 units), which obtained TOP in 1997.
The Parc Condominium (TOP in 2010) and The Infiniti (TOP in 2008) have lots of capital appreciation due to their freehold tenure and proximity to the upcoming MRT station. They are also the only freehold developments in the vicinity. Based on resale transactions for this year, average prices for The Parc Condominium ($1,534 psf) and The Infiniti ($1,333 psf) are trending below the average price of $1,700 psf for freehold condominiums in Singapore.
Clementi MRT Station: Adding to appeal of a mature town
Clementi MRT Station will be one of the two interchange stations on CRL2. The MRT station is in bustling Clementi town, which is well-known as an education hub with the National University of Singapore and several polytechnics in the vicinity.
There are a total of eight condominiums with 4,459 units within a 1km radius. Parc Clematis ($1,759 psf) and Clavon ($1,686 psf) are the newest and most expensive. It is notable that Parc Clematis is within a 1km radius of both West Coast and Clementi MRT Stations.
Regent Park also has the lowest average price of $1,135 psf, which is even cheaper than average resale prices for leasehold condominiums in District 5 ($1,420 psf) and Singapore in general ($1,386 psf). Savvy investors should definitely consider snapping up a unit before prices increase on the back of CRL2.
King Albert Park MRT Station: Enhancing value for numerous nearby condominiums
King Albert Park MRT Station is the second interchange station in CRL2. There are 13 condominiums with 3,697 units within a 500m radius of the MRT station and 17 condominiums with 4,601 units within a 1km radius.
Among the condominiums within a 500m radius, uncompleted Mayfair Modern is most expensive at $2,143 psf. Its average price has stayed consistently around $2,000 to $2,200 psf since launch. Based on caveats lodged with URA at the time of writing, 168 units in Mayfair Modern have been sold (take-up of 98.2%), so interested buyers will have to move fast.
The largest development is Maple Woods (697 units) and smallest is Casa Esperanza (90 units). En-bloc potential is expected to increase for Casa Esperanza because of its age (TOP in 1992), small size and freehold tenure. The site is suitable for a niche luxury condominium in a prime district.
Besides Casa Esperanza, there are three other small freehold condominiums with less than 150 units in the vicinity, namely, 1 King Albert Park (101 units), Jardin (140 units) and Kap Residences (142 units). Based on sales transactions over the past 24 months, Casa Esperanza ($1,653 psf) is cheaper than Jardin ($1,688 psf) and Kap Residences ($1,691 psf) but more expensive than 1 King Albert Park ($1,631 psf). Investors looking to add a prime freehold property to their portfolio could consider the above properties.
Jurong Lake District MRT Station: Preparing for the future
Jurong Lake District (JLD) is slated to be the largest mixed-use business district outside the city centre with offices, housing, supporting amenities and greenery. Its development will revolve around four themes. The upcoming Jurong Lake District MRT Station aligns with the theme of having a comprehensive public transport network for the district.
At the time of writing, the government announced that studies are still underway by LTA to determine if Jurong Lake District MRT Station (CRL2) and Jurong Town Hall MRT Station (Jurong Region Line) should be linked as an interchange.
Only Ivory Heights is within a 1km radius, but the condominium is also within 500m radius of Jurong East MRT Station. Hence, the upcoming Jurong Lake District MRT Station is unlikely to have much impact on the development.
There are 11 HDB blocks with 2,155 flats along Teban Gardens Road that are within a 500m radius of the upcoming MRT station. Due to their proximity to the upcoming MRT station, these flats are expected to attract more interest from buyers. However, the small inventory translates to no sales transactions this year. The latest transactions were in February 2021 for two 721-sq ft flats that fetched $395,000 ($548 psf) and $370,000 ($513 psf). (Find HDB flats for rent or sale with our Singapore HDB directory)
It is notably that average prices for HDB flats in Jurong East ($468 psf) are consistently below average prices for the West region ($487 psf) and Singapore in general ($527 psf). Flats in Jurong East are an affordable choice for families who are willing to put up with the construction noise in exchange for potential price appreciation when JLD is fully developed.
Check out the latest listings near King Albert park, Clementi, Jurong Lake, Maple Woods, The Cascadia, The Tessarina, Royalgreen, Ki Residences at Brookvale, Hundred Trees, Parc Clematis, Whistler Grand, Regent Park, The Parc Condominium, The Infiniti, Clavon, Mayfair Modern, Casa Esperanza, Jardin, Kap Residences, Ivory Heights, Jurong East MRT Station
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