The last time a major urban plan was announced in Singapore, cue the city’s centrepiece Marina Bay Sands urban transformation or even the introduction of the Downtown Line in 2005, it sparked massive interests amongst property investors locally and internationally looking to purchase undervalued properties in Singapore’s stable market environment.
Ultimately, the desirability of a neighbourhood plays a huge part in affecting both the capital and rental growth of your property, and one important variable is the connectivity of the neighbourhood. When accessibility to work and home is improved, its liveability is improved, and the natural effect is that the area will become more desirable, and this demand would drive property prices in the area up.
In fact, a study done by the National University of Singapore proposed that generally, the more accessible a Singapore property is to a MRT, the higher its value. The study surveyed non-landed private housing transactions that was in proximity of the Circle Line from the period of January 2009 to May 2013, and the three main findings were:
Assessing the Masterplan, the Singapore government plans to continue prioritizing accessibility as one of the key planning objectives, in tandem with other objectives such as digitalization and environmental sustainability. By 2030, 80% of households in Singapore will be within a 10-minute walk to a train station.
Fig.1: Singapore’s System Map by 2030
This could effectively signal that properties near MRT stations might no longer command price premiums, and newer stations may not push prices up as much as they have in the past.
In fact, it would be harder to find a home that is unreachable to Singapore’s comprehensive public transportation than one that is conveniently accessible. Not to mention, other variables are crucial in determining the value of your property, such as supply and demand, the quality of the neighbourhood amenities, and the potential for growth.
With Singapore’s real estate market becoming increasingly saturated and possibly stagnant, where else can interested property investors capitalize on large scale regeneration and infrastructure projects? In this article, let us analyse London, the capital city of the world.
To have a better understanding of how a new infrastructure project can affect property prices in London, we can analyze Crossrail 1 (aka the Elizabeth Line).