Some are buying Marine Parade flats, speculating MRT station will be here
TALK about planning ahead.
By Desmond Ng
29 April 2008
TALK about planning ahead.
News of the Eastern Region MRT Line was released only three months ago and the location of its 12 stations have yet to be announced.
The line is expected to be completed only in 2020, a good 12 years away.
But some property hunters are already hoping to cash in by speculating on the location of one of the stations at Marine Parade.
They are buying up flats in the area in anticipation of possible capital and rental gains.
The line will connect Changi to Marina Bay via Marine Parade.
The coffee-shop talk is that the station will be built at the former Marine Parade Community Library site near Parkway Parade shopping mall.
This site is now occupied by an NTUC FairPrice outlet.
Housing agents contacted by The New Paper said that since the Land Transport Authority (LTA) announcement in January, some flats there have been snapped up by locals and Singapore permanent residents hoping to cash in.
Some buyers have anticipated that prices of flats nearest the MRT station will appreciate when the station is up and running, said housing agent Victor Lee.
He said these buyers were just guessing where the proposed station would be and 'are buying to invest, either to sell at a higher price or for good rentals when the station is ready'.
He said he has received a few calls enquiring about flats in the area.
'I know some units around that area have been sold partly based on that speculation. But this area has always been popular, whether or not there's an MRT station here.
'People like this area for the proximity to East Coast Park, the sea and Parkway Parade.
'The new MRT station will definitely be a bonus, of course,' said Mr Lee.
Housing agent Sam Lew of ERA, who specialises in that area, said that since the estate is quite small, it's not difficult to pin down where the station is likely to be.
Said Mr Lew: 'It should be in the central area because it's near Parkway Parade, the market and all the other HDB blocks there. That's the only piece of land that can logically accommodate an MRT station.'
PRICE INCREASE
He said there has been a slight price increase for flats there since the MRT line was announced, but this was muted partly because of the economic uncertainty and slowdown in en-bloc activity.
He estimated the price increase was about 5 per cent.
Said Mr Lew: 'The market has slowed down considerably because of the sub-prime issues. In the past, it took us about a month to sell a three-room flat. But now it'll take us about three months instead.'
The 21-km, 12-station line will extend to the residential estates of Tanjong Rhu, Marine Parade, Siglap, Bedok South and Upper East Coast which are currently not served by theMRT.
NOT FAR OFF
And those who speculate on the Marine Parade station may not be far off the mark with their predictions based on density factors.
For an MRT station to be commercially viable, several conditions need to be considered, said transport economist Michael Li of the Nanyang Business School.
These include future population growth, the catchment of the existing human traffic there and the density of the area, which includes residential, commercial and retail developments.
He said: 'Generally, if the property is near an MRT station, the value will appreciate and the rental will be good. But in this case, the timing of the construction could be many years later especially if the network is planned for year 2020.
'Some of these home-buyers may be there for the initial gains. They may get rid of their flats quickly to the next buyer while the news is still hot.'
When contacted, LTA said the site of the proposed Marine Parade station had not been determined yet.
The alignment of the line and station location will be determined only upon completion of the engineering studies, it said.
STUDIES TAKE YEARS
Said an LTA spokesman: 'Such studies typically take several years to complete because we need to ensure that the subsequent construction works are carried out properly and safely, with minimal inconvenience to commuters as well as businesses and residents along the (Eastern Region) line.'
Mr Eric Cheng, HSR's executive director, said he had heard rumours about an upcoming MRT station there about two years ago.
But he warned against buying property based on such rumours.
Said Mr Cheng: 'Consumers should ask for black-and-white proof that the MRT station is really going to be at that location because they'll be paying a premium for the place based on those rumours.
'The loss could be a fair bit if the station turns out to be somewhere else. Marine Parade Road is quite long. Things could change.'
Will property hunters hit jackpot?
Some people are speculating that the new Marine Parade MRT station will be at the side occupied by the NTUC FairPrice outlet.
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EastLiving.com.sg
Contact Stuart Chng: (65) 9691 9907
Email: stuart.chng@eastliving.com.sg
EastLiving - Singapore Property and Real Estate DB
1 comment:
hello, i don't know much about real estate in singapore. it's interesting. take care.
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