Prices of residential properties located near Singapore’s Rail Corridor may climb once the 24-km former railway track is revamped, according to property experts quoted in the media.
Last week, the Urban Redevelopment Authority (URA) called on design professionals to submit development proposals for six areas along the corridor earmarked for improvement – Buona Vista, the Bukit Timah Railway Station area, the former Bukit Timah Fire Station, Tanjong Pagar railway station, Choa Chu Kang and Kranji.
And while homes located in the area are mostly expensive landed properties within Bukit Timah such as at Rifle Range Road and Holland Road, this could still provide homeowners with potential gains.
SLP International executive director Nicholas Mak noted that the termination of rail services has already benefitted owners living near the old track.
For instance, the noise previously pulled down property values in the area by one to two percent.
Still, properties located nearby tend to come with a premium as some are gazetted Good Class Bungalow areas, like King Albert Park and Ewart Park, said Desmond Sim, CBRE research head for South-east Asia and Singapore.
However, property values typically increase following announcements such as the one by URA, while further gains may be seen as new capital investment takes shape, noted JLL head of research for South-east Asia and Singapore Dr Chua Yang Liang.
“A lot of the potential upside will depend on… how the additional land that has been freed up is integrated with the surrounding area, and whether these enhancements are in line with the overall ambience and characteristics of the neighbourhood,” he added.
Romesh Navaratnarajah, Singapore Editor at PropertyGuru, edited this story. To contact him about this or other stories email email@example.com