Some property agents have announced that more owners are planning to put their homes near the Circle Line train network up for sale, even as the real estate market powers on.
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There has been a 10-percent to 20-percent increase in interest in selling those properties since the opening of 11 new Circle Line stations on 17 April 2010, said the agents.
The Circle Line network transports more than 200,000 commuters each day.
According to several market watchers, it is also moving properties near the 11 newly opened train stations.
For instance, the sales interest of Dennis Wee Properties increased 20 percent during the last two weeks.
“There were some owners that we spoke to who said that we should wait for the lines to be opened and then put my property up for sale and they have been asking now since the line has been up five to 10 percent more than what they used to go,” said Mr. Chris Koh, director of Dennis Wee Properties.
Mr. Steven Ming, director for Investment Sales & Prestige Homes at Savills, said: “With rising cost of car ownership here in Singapore, we can expect a growing appreciation amongst home buyers for properties located close to such transport nodes or good network and they may well be willing to pay as much as maybe 20 percent more.”
During a recent industry event, several property developers expressed their concern on a possible hike in land costs that the expanded rail network could bring.
Out of 26 sites under the Government Land Sales programme between January and June, 10 sites are close to train stations.
The Urban Redevelopment Authority (URA) said that it is reasonable to release land around the train stations for development, as this will encourage more people to reside there and benefit from the increased connectivity.
However, industry watchers said that developers should not worry, as homes near transport network will raise margins and command a premium and home prices may continue to soar albeit at a slower pace.
With more construction projects in the pipeline and the property market picking up, industry watchers expect building cost to escalate. Construction cost has risen by around 20 percent so far since last year’s recession, they said.
Observers added that fanciful apartments with better finishes and special features like Jacuzzis have also driven up construction cost.