How Do MRT Stations Affect Property Prices And Rent?

Conventional wisdom suggests that prices of properties near MRT stations command a premium. We explore just how much of a premium that might be, how it could affect rental prices, as well as how the upcoming Thomson-East Coast Line may affect property prices.
How much more do you pay for properties near MRT stations?
Using the EdgeProp property search and Heatmap tools to obtain price data, we compared advertised prices for private apartments and condominiums within 0.5km, 1km, 1.5km and 2km of 15 MRT stations against average asking prices of the same types of properties in surrounding or neighbouring locations:
Data source: EdgeProp
A few observations from the table above:
  • Properties closer to MRT stations were almost always significantly more expensive than the prices of properties in the surrounding or neighbouring location. Overall, properties within 0.5km of an MRT asked for a 15% premium over those in the general surrounding or neighbouring location.
  • It is generally more expensive to buy properties within 0.5km of an MRT station compared those within 1km, but only marginally so for most areas.
  • Properties near the Orchard MRT station demand the highest price premiums. Properties within 0.5km of the station have a 43% premium over those within 1km.
What do the experts say?
Based on a study that looked at non-landed private housing transactions near the Circle Line for the period of January 2009 to May 2013, researchers at the National University of Singapore found that:
  • The Circle Line increased housing prices by 1.6% on average
  • Properties within 400 metres from the Circle Line MRT stations sold for 4.2% higher than comparable properties outside the 400-metre zone
  • After the Circle Line opened, housing price increases in the 400-metre zone were 13.2% more than those outside the zone
Is rental costlier the closer you live to an MRT station?
Data source: EdgeProp