Property prices will spike for homes along Downtown Line: observers

A day after more details of the Downtown Line were announced, observers are already predicting a hike in property prices in those areas.

Residents of Tampines and Bedok can expect five more stations serving their estates. And Jalan Besar will see a new station as well.

Homes around the Downtown Line linking Singapore Expo in the east to Bukit Panjang in the north-west are likely to see property prices shoot up.

Like many other train stations around Singapore, amenities like malls and shops will soon sprout around the area, serving residents and commuters.

One property expert estimates that HDB flat prices may rise between 5 and 15 per cent over the next seven years, while private condominiums could command a premium of about 10 to 20 per cent.

“Based on past experience, we foresee that the rise may break into two different phases – one is immediately after the announcement which may happen these few days; the other one could be just before the completion of the MRT station,” said Steven Tan, executive director of OrangeTee.

Cash-over-Valuation (COV) for HDB flats could also go up.

“For example, if the average COV is about $30,000 to $40,000, after the announcement, the COV may go up to $50,000 to $60,000 (for the HDB flat around the vicinity),” said Tan.

Existing stores are also looking forward to the new lines.

But they too worry about a spike in rentals.

“(There’ll) be more competition because (there’ll be) a bigger crowd, so business will be boom,” said one retailer at Tampines Central near Tampines MRT.

When completed, the Downtown Line will facilitate direct travel from the northwest and east of Singapore to the Central Business District (CBD) and Marina Bay.

The line is projected to see a daily ridership of more than half a million people when fully operational by 2017.

Source : Channel NewsAsia – 21 Aug 2010

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