The Cross Island Line and its “MRT Effect”
Updated: Nov 6, 2020
With an estimated 1,000,000 daily ridership after the line is completely built, the Cross Island Line (CRL) serves to connect the West and East siders in Singapore. It spans over 50km and is the longest fully underground line. After it is fully developed, it will connect riders to areas such as Changi, Punggol Digital District, and Jurong Lake District. As a result, residents living in the far East and West will be better connected and their livelihood will improve. CRL is split into three phases; the plan for Phase 2 and Phase 3 have yet to be released.
Phase 1 of CRL consists of 12 stations, starting from Changi East Depot to Bright Hill. It is scheduled to be completed in 2030.
List of Stations (Phase 1):
CR 1 Changi East Depot
CR 2 Aviation Park
CR 3 Loyang
CR 4 Pasir Ris East
CR 5 EW 1 Pasir Ris
CR 6 Tampines North
CR 7 Defu
CR 8 NE 14 Hougang
CR 9 Serangoon North
CR 10 Tavistock
CR 11 NS 16 Ang Mo Kio
CR 12 Teck Ghee
CR 13 TE 7 Bright Hill
Residents living around these areas (Pasir Ris, Tampines, Defu, Hougang, Serangoon North, and Ang Mo Kio will benefit greatly from Phase 1. This is known as the “MRT Effect” (more below).
In addition to Phase 1, CRL – Punggol Extension will also be built to connect residents in Punggol and Pasir Ris. It serves areas such as Tampines North, Pasir Ris, Punggol, and Sengkang. The line extension consists of 4 stations; 3 of which are interchanges.
List of Stations (Punggol Extension):
CP 1 CR 5 EW 1 Pasir Ris
CP 2 Elias
CP 3 PE 4 Riviera
CP 4 NE 17 PTC Punggol
Advantages of Owning Properties Near Cross Island Line
With the CRL stations located all across Singapore, it will definitely connect residents from all areas to the East and West sides. Those working in the industrial areas will now be able to take an MRT to their workplace instead of having to hop on to a bus.
Major developments and districts will also be connected via CRL. Such areas include Punggol Digital District, Changi Depot, and Jurong Lake District.
2. Shorter Travelling Time
The line is primarily built to connect residents to their workplaces, especially those with a higher concentration of workers and lower connectivity via MRT, and secondly to bring accessibility to all areas in Singapore.
By connecting residents to areas all over Singapore, the traveling time will be reduced drastically. It reduces the need to switch between different MRT lines or from MRT to bus, which can come up to 40 minutes per day (according to the Chief of LTA).
3. Reduced Crowding of Cabins
Squeezing into a crowded cabin during peak hours is something that most would want to avoid, especially after a long day of work. However, due to the work from home measures that are implemented by a majority of the companies, this scene is less often seen nowadays.
Not only does CRL increase the connectivity and accessibility, it also comes with a huge capacity to serve 600,000 rides or more each day. This helps to divert the crowd away from the East-West Line in particular. After the line is completely developed, it is estimated that the ridership will go up to a million per day.
4. Eliminated the Need of Taking a Bus
CRL consists of stations in the less connected part (ie. areas without any station within 15 minutes of walking) of Singapore. With the line completely built, it will do away with the need to take a bus home after a train as the station is likely to be within 10 minutes of walking.
According to URA, the need to take a bus home after a train will only occur to two out of 10 households after CRL is built.
The “MRT Effect”
It is a known fact that properties will have an increase in valuation if there is a plan for a station to be built near it (0.5km radius). This is largely due to the advantages of living near a station, as listed above. These properties tend to have a higher asking price of around 15% compared to properties that are located outside the 0.5km radius.
What makes the “MRT Effect” more prominent with the Cross Island Line is that it is the 8th MRT line in Singapore, and it might be the last line that will be built within the upcoming years. This further allowed property investors to leverage on the development of CRL to gain more capital appreciation.
The following properties are expected to experience a surge in their property value due to the new stations that will be built near it.
Properties Located Within Close Proximity of CRL Phase 1:
· The Jovell @ Flora Drive
· Parc Komo
· Alps @ Tampines
· The Tapestry @ Tampines
· Riverfront Residences @ Hougang
· Riverfront Residences @ Hougang
· Affinity @ Serangoon
· Parkwood @ Serangoon
· The Garden Residences
· JadeScape @ Marymount
Despite the perceived benefits of value appreciation of the properties, property investors should also consider the fact that the CRL is only scheduled to be completed in 2030. Within the 10 years, there might be other properties that will bring about the same rate of returns, but with a shorter waiting period. Additionally, there might be delays in the CRL due to the pandemic which led to contractors being unable to start their work a few months back. The market is also relatively unstable for any investors to dive into property investment unless the investor has a huge capital.
The development of Cross Island Line is definitely a plus point to all residents as it brings about an increased level of connectivity and shorter traveling time for those who are working in the industrial areas.
For the property investors, investing in a property located along CRL may be a good investment, especially if you are willing to wait for 10 years to appreciate the value. However, the returns of the property might not be as high as what is expected due to factors such as the presence of other developments and changes.
If you are looking to understand more about investing in a property along the Cross Island Line, do not hesitate to drop me a WhatsApp today.
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Ideal Home is well-liked by both local and international clients for their friendly yet professional approach in the way it goes about helping them with their real estate goals in Singapore. They welcome the opportunity to have a no-obligation chat with you to see how they can help you to achieve your real estate goals in Singapore.
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