Property prices are an intricate dance of numerous variables. Renowned schools in the vicinity can drive prices up as parents willingly dig deeper into their pockets for their children's education. A high-floor unit boasting an unobstructed view might appeal to those seeking tranquility amidst the urban hustle, hence demanding a higher price tag. Expectedly, the convenience of an MRT station nearby is another potent factor in property valuation - properties closer to an MRT station often command a greater premium.

Harnessing the power of an extensive database coupled with sophisticated machine learning algorithms, we zoomed in on Dakota MRT and Grand Dunman to investigate this urban phenomenon. Our study probes into the influence of MRT proximity on property prices and rental rates, providing compelling insights for both investors and homebuyers alike.

Grand Dunman

Address: 2 Dunman Rd, Singapore 439188

Property Type: 99-year leasehold

Number of Units: 1008

More information: https://granddunmanresidence.sg

Case Background & Methodology

Many condos are close to more than one MRT stations, implying that condos situated farther from Dakota MRT might be closer to other stations such as Aljunied or Mountbatten MRT. To effectively isolate the distinct influence of the proximity to Dakota MRT on the sale and rental price of condo units, we controlled for confounding factors like nearness to other MRTs. We achieved this by establishing specific parameters - selecting only condos located within a 1-kilometre radius from Dakota MRT. Moreover, in order to draw meaningful and relevant insights from the data, we only select transactions that occurred after 2018.

Hence, we've accumulated data that fits these criteria as follows:

• No. of condos projects: 164
• No. of condo units: 11,236
• Number of sale transactions: 5,477
• Number of rental transactions: 30,360

Our analysis takes the distance between Grand Dunman and Dakota MRT, which is approximately 200m, as the base for comparison. We will examine the changes in the price premium of condo units as the distance to Dakota MRT gets farther.

Analysis & Findings

Impact of Distance from Dakota MRT Station on Sale Price Premium Variations

We observe that:

• Properties within 200m to 300m proximity to Dakota MRT garnered the greatest premiums with such effect tapering off from 400m onwards.

Impact of Distance from MRT Station on Rental Rates Premium Variations

• Properties located within 400m from the Dakota MRT have higher rental rates.
• There is an overall downward trend in rental prices starting from a distance of 400m from Dakota MRT.

In conclusion, our in-depth study underscores the undeniable impact of MRT proximity on property prices and rental rates, affirming the old real estate adage of 'location, location, location'. Our analysis, anchored on Dakota MRT and Grand Dunman, presents compelling evidence that the convenience of MRT accessibility significantly drives property value. As Singapore continues to urbanise, understanding these real estate dynamics will be crucial for savvy investors, homebuyers, and policymakers alike. This study is a step forward in that direction, providing actionable insights into the intricate dance of property pricing.

Download the full report (PDF) here: The Impact of Proximity to MRT Stations.pdf

To know more about our data-driven real estate solutions, contact us here.

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