Tanjong Rhu’s transport woes lifted
Tanjong Rhu has been something of a transport dead zone but plans to build an MRT station will put the inner city within easy reach and boost local real estate, said analysts.
The station will be one of the stops on the Thomson-East Line announced last Friday.
It is expected to open by 2023, a move that consultants said will lift property values and solve a transport headache for residents.
Tanjong Rhu isserved only by bus routes. Getting a train now means finding a way to the Mountbatten or Stadium stations on the Circle Line. But the new Tanjong Rhu station will be only three stops from the Marina Bay interchange, giving residents quick links to the city centre and the financial district.
Home values in Tanjong Rhu could appreciate between 7 and 12 per cent by the time the new rail line is completed.
Rental gains and appreciation in home values are likely to be limited in the short term as buyers are restricted by the Total Debt Servicing Ratio and Additional Buyer’s Stamp Duty.
Residents will also be inconvenienced by the construction, so rents and home prices are expected to stay stable in the shorter term, consultants said.
Tanjong Rhu was an industrial estate before it was turned into a private residential enclave with only a handful of condominiums. Newer projects in the vicinity include Lakeview Investments’ 107-unit The Line@ Tanjong Rhu and the 128-unit Fulcrum, built by CEL Development.
Only one 893 sq ft flat was sold at The Line@Tanjong Rhu in the past six months. It went for $2,115 per sq ft – under the freehold project’s two-year average sale price of $2,298 psf.
Units at Fulcrum, also a freehold development, have sold for an average of $2,240 psf over the past two years.
Resale homes at the 737-unit Costa Rhu have sold for an average of $1,309 psf over the past year, with a rental yield of 3.1 per cent. The 99-year leasehold project was completed in 1997.
The 99-year leasehold Pebble Bay, a 510-unit estate completed in 1997, sold at an average of $1,409 psf over the past year with a rental yield of 3.2 per cent. Units at the newer Water Place have sold at an average price of $1,266 psf over the past year, with rental yields at 3.8 per cent. The 437-unit project has a 99-year lease and was completed in 2004.
Source: The Straits Times – 23 August 2014