The extension of the Thomson-East Coast Line (TEL) is reshaping Singapore’s East Coast property landscape. With seven new stations—Tanjong Rhu, Katong Park MRT, Tanjong Katong MRT, Marine Parade, Marine Terrace, Siglap, and Bayshore—residents are now closer than ever to convenient, high-speed travel.
Today, around 235,000 households are within a 10-minute walk of a TEL station, and journeys like Marine Parade to Shenton Way have been cut from 40 minutes to just 20. This increased convenience sparks the question: how has this impacted property and rental markets in these areas?
Immediate Boost in Property Market Activity
Since TEL’s expansion, activity has surged around the new stations. For example, Q3 2024 data shows a substantial rise in non-landed private property listings within 0.8 km of TEL, reaching 2,619 from a 2023 quarterly average of just 410. This dramatic rise suggests that property owners near these new stations are eager to capitalize on enhanced accessibility and the demand it brings.
The rental market has also heated up. Near Tanjong Katong station, for instance, rental listings in Q3 2024 soared to 1,844, from just 301 a year ago, with listing views up nearly 90%. The interest around TEL clearly indicates that the enhanced connectivity is a strong draw, shifting both buying and renting dynamics.
A Premium for Proximity to New Stations
Properties close to MRT stations often come with a price premium, and TEL’s recent expansion highlights this trend. Condominiums within 0.8 km of the new stations saw their median asking price per square foot reach S$2,068 in Q3 2024, up from S$1,978 in Q1—a rise of 6.8% over the past year.
The proximity premium isn’t uniform across property types, however. For instance, landed homes in the same radius saw a modest increase of only 1.6% per square foot. Buyers who got in early saw price gains as well, although they also endured the inconveniences of nearby construction.
Spillover and Broader Impacts on Property Markets
While the TEL extension has clearly boosted property prices near its stations, its impact ripples beyond these areas. Properties close to existing MRT lines may see mixed effects. For some, the enhanced network brings more flexibility and travel options, yet others face stiffer competition as buyers and renters eye the new TEL-connected locations.
In the rental market, softer demand nationwide led to a 15.7% drop in median asking rents near MRTs, although rentals near TEL stations, such as in Tanjong Katong, showed resilience, dipping by less than 1%. By contrast, properties around existing MRT stations like Paya Lebar faced a 4.6% price drop.
Future Trends and Considerations for Buyers
The TEL expansion has undoubtedly enhanced East Coast connectivity, propelling price and rental increases for properties nearby. Early investors in areas like Lentor Central Residences, W Residences Singapore, and River Green experienced capital appreciation but had to navigate construction inconveniences. Looking forward, as more lines such as the Cross Island Line open, the MRT premium may shift, and broader trends—remote work, decentralization of the CBD—may redefine the market’s dynamics.
Connectivity to MRT stations remains a key factor for property values in Singapore, though it’s just one among many. For prospective buyers, weighing these unique factors and their investment timelines remains crucial. The recent TEL expansion exemplifies the potential of getting in early, but buyers should always consider hidden costs and ensure their investment fits their needs.