Downtown Line 2 is coming to town

This Christmas Santa comes bearing gifts, and a particularly happy one has arrived in the shape of a 16.6km MRT track. That’s right, the next chapter of an ever-expanding MRT network is upon us, and the opening is going down the 27th of this month (December).

While the soft launch has already passed, we’re still in for a treat as all rides along the Downtown line are free of charge from the 27th to the first of January next year.

Some notes on the Downtown Line

For those who have been hiding under a rock for the last couple of years, the Downtown Line is a three-staged effort by the Land Transport Authority (LTA) to enhance the connectivity on the island and shorten travel times.

Stage 1:

The Downtown Line 1 comprises 4.3km of tracks and 6 stations, running from Bugis through Promenade, Bayfront, Downtown, Telok Ayer, finally ending at Chinatown. Four out of the six stations are interchanges, linking the line up to the East West Line, the Circle Line and lastly, the North East Line.

Stage 2:

The Downtown Line 2 comprises 16.6km worth of tracks, a whole new fleet of trains and 12 stations 4 of which are interchanges at Little India, Newton, Botanic Gardens, and Bukit Panjang. The interchange stations will link in the Downtown line with the North East Line, the North-South Line, the Circle Line, and Bukit Panjang LRT.

Stage 3:

The Downtown Line 3 is currently still under planning/construction, and is set to be finished late 2017. When completed, it will span the eastern part of the island from Fort Canning to Expo. With 21km of rails and 16 stations, it will be the longest segment of the whole Downtown Line.

With Downtown Line 2 open for business soon, travel times will substantially be shortened for many trips. For example, a ride from Bukit Panjang to the city centre used to take you about 60 minutes. With the Downtown Line 2, that commute is shortened to approximately 40 minutes.

The Downtown Line 2

The new line runs from Bukit Panjang all the way to Bugis through the following stations: From North-West to South-East, the stations are Bukit Panjang, Cashew, Hillview, Beauty World, King Albert Park, Sixth Avenue, Tan Kah Kee, Botanic Gardens, Stevens, Newton, Little India, and Rochor.

That MRT-effect

As property-buffs, we can’t help but hypothesise about what this may mean for property. This brings us to the so-called MRT-effect, which dictates that everything else held constant, the closer one’s home is to an MRT station the more its worth.

So basically, we would all love for the LTA to decide to build an MRT station in our backyard. With the Downtown Line 2 becoming a reality many a residential property will suddenly greatly have its accessibility improved, and will in all likelihood experience some value appreciation.

So who are the lucky one’s? Well, many a property owner, and we have assembled a top 10:

• Dairy Farm Estate near Cashew & Hillview MRT
• Summerhill near Hillview MRT  
• Signature Park near Beauty World MRT  
• Maplewoods near King Albert Park MRT
• Floridian near King Albert Park MRT
• Villa Azura near Sixth Avenue MRT
• Fifth Avenue Condominium near Sixth Avenue MRT
• Dutchess Crest near Tan Kah Kee MRT
• Casabella near Tan Kah Kee MRT
• Burlington Square near Rochor MRT  

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[Update: January 18, 2016]

The recently completed Downtown Line 2 (DTL2) has bolstered prices of homes near its stations, increased rents and caused a rise in sale volumes. Properties near its stations have seen increased rents and a spike in the number of units sold.

This is known as the ‘MRT effect’. Prices adjustments are likely once a station is completed and starts operations, Knight Frank research head Alice Tan told The Straits Times. The DTL2 was completed in December 2015.

Knight Frank’s analysis of private apartments along major roads near the DTL2 – Upper Bukit Timah, Bukit Timah, Rochor Canal and Sungei roads – supports the trend.

Average prices rose 4.5% from the third quarter last year to S$1,592 psf in the fourth.

Leasing activity and rents near its stations have also improved. Mr Ong Kah Seng, R’ST Research director, said the number of leases signed in the vicinity of King Albert Park station rose 38% from the second quarter of last year to 358 in the third quarter.

Median rents rose from $3.15 psf per month in the first quarter to $3.23 psf per month in the second and third quarters.

Read The Straits Times for the full report.

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Do you live near the Downtown Line? Let us know in the comments section below.

If you enjoyed this article, check out Luxury and value next to Downtown Line stations and Do new MRT stations affect property transaction prices?