Fact or Fiction: Do ECs Near To MRT Gain More Value?
January 3, 2020
The MRT is an essential part of life in Singapore. Many use it as their primary mode of transport in their daily commute back and forth from work, school and play. The MRT also plays in important part in property prices. Properties that are located closer to the MRT enjoy greater convenience, and are also in greater demand from tenants.
As such, the general perception is that properties situated closer to the MRT enjoy better appreciation in price value because it can command a premium for the convenience that it offers.
But is this really the case?
In this article, we take a look at the actual transactional data for 4 EC developments and see if proximity to an MRT station really makes a difference in price appreciation.
Section 1: ECs NOT Near to MRT
Let’s begin our analysis with 2 ECs that are not near to an MRT station.
The Canopy Executive Condominium
The Canopy is an EC completed in 2014, with 406 units, situated at Yishun Avenue 11.
It is located approximately 1.58km from the nearest MRT, Yishun Station.
From its launch period till date, prices have gone from $651 psf to $809 psf, or a 24% increase in price, over a span of 5 years.
Notably, out of 54 profitable transactions, the highest amount of profit thus far is $262,000.
RiverParc Residence Executive Condominium
Out of 40 profitable transactions thus far, the highest amount of profit is at $336,000, higher than The Canopy’s at $262,000.
Section 2: ECs Near to MRT
Esparina Residences Executive Condominium
It is important to note that the price remains on an upward trajectory past its 5-year MOP period.
Out of the 140 profitable transactions, the highest profit is at $651,000, which is more than twice The Canopy’s highest profit at $262,000, and almost twice RiverParc’s highest profit at $336,000.
Prive Executive Condominium
Out of its 159 profitable transactions, the highest profit stands at $502,100, which although is lower than Esparina’s, is still higher than The Canopy and RiverParc.
Looking through the data that we have presented so far:
- ECs not close to MRT
- The Canopy: 24% price increase, over 5 years
- RiverParc: 24% price increase, over 5 years
- ECs close to MRT
- Esparina: 49% price increase, over 6 years
- Prive: 42% price increase, over 6 years
We can observe that there is a very strong relationship between price appreciation and proximity to an MRT Station.
If you’d like to know which are the ECs worth making a purchase, reach out to us today.