The completion of the Downtown Line 2 (DTL2) in December 2015 has boosted home prices near the new stations, as well as pushed up rents and sales volumes, reported The Straits Times.
In fact, Knight Frank’s analysis of caveats lodged for private apartments along major roads close to the DTL2 showed that average prices climbed 4.5 percent from Q3 2015 to $1,592 psf in Q4 2015.
“In this post-Total Debt Servicing Ratio period, these average prices have held up well compared with islandwide price trends,” said Knight Frank Research Head Alice Tan.
In the past two years to 31 December 2015, average prices of apartments along these major roads increased by 3.58 percent, while the property price index of the Urban Redevelopment Authority weakened by around 7.6 percent. Tan noted that the presence of the DTL2 may have supported home prices near the stations.
Greater buying interest was also observed as the DTL2 neared completion. Eco Sanctuary in Chestnut Avenue, for instance, went from 82 percent sold in December 2014 to 91 percent sold in November 2015, said R’ST Research Director Ong Kah Seng.
Over the same period, The Skywoods in Dairy Farm Heights went from 43 percent to 85 percent sold, while Kingsford Hillview Peak in Hillview Rise rose from 33 percent to 46 percent sold.
In the Core Central Region (CCR), Robin Residences near Stevens MRT station saw median prices increase 0.3 percent year-on-year to $2,378 psf in H2 2015, compared with a 2.6 percent drop in the overall CCR price index over the same period, said SLP International Executive Director Nicholas Mak.
Sales transactions in the project also increased from 15 in H1 2015 to 29 in H2 2015.
Rents and leasing activity near these stations appear to have improved as well.
Ong revealed that the number of leases signed within the vicinity of the King Albert Park station jumped 38 percent from Q2 to 358 deals in Q3 last year, while median rents climbed from $3.15 psf per month during the first quarter to $3.23 psf per month during the second and third quarters.
Photo by alantankenghoe
Romesh Navaratnarajah, Senior Editor at PropertyGuru, edited this story. To contact him about this or other stories email romesh@propertyguru.com.sg
