Is Buying a Property Near a CIQ/RTS Link Bridge Worth It?
This article discusses whether purchasing a property solely based on its proximity to a CIQ (Customs, Immigration, and Quarantine) checkpoint or a direct link bridge to it is a worthwhile investment. The discussion emphasizes the importance of evaluating the property itself before being swayed by the convenience of nearby amenities.
Introduction
Many property developers and agents highlight a property's proximity to a CIQ or a direct link bridge as a major selling point. However, it's crucial to consider the overall value of the property instead of fixating solely on this feature. The key is to focus your attention on the quality and potential of the property itself, not just the allure of the nearby connection.
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Focusing on the Property Itself
When considering a property near a CIQ or RTS (Rapid Transit System) station, it's essential to "calm down first" and assess the property's intrinsic value. Avoid letting the link bridge overshadow the property's potential weaknesses.
Consider this: a property might only score 60-70 points based on its merits. The presence of a link bridge might artificially inflate its perceived value to 80-90 points. Should you buy a property solely because of the bridge, even if the underlying property is not ideal?
The Importance of Property Fundamentals
Even with nearby MRT stations, Link Bridges, or shuttle bus services, making money from a property isn't guaranteed. The success depends heavily on the property's core attributes.
Factors to consider include:
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Location
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Price (compared to the asking price)
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Design
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Size
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Target demographic
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Job opportunities in the area
A poorly constructed property, even if near an MRT station or link bridge, could become a "ghost city" if the developer lacks experience or financial management skills.
Population Flow and MRT Stations
When assessing properties near MRT stations, consider the station's foot traffic or "人口流动量". Properties in areas with high population flow are generally more likely to be profitable, whether for owner-occupancy or investment. However, a property near an MRT station with low foot traffic may not yield the desired returns.
Trusting the Developer's Vision
Before purchasing, assess whether you like the development itself and whether you trust the developer's vision for the future. If you lack confidence in the developer's plans, you risk spending money unwisely.
Premium Pricing and Market Dynamics
Developers often charge a premium for properties near MRT stations or with direct access to CIQ or RTS link bridges. The thinking is: "I have a desirable feature, so I'll mark up the price."
This practice is simply business. As a consumer, you have the choice to buy or walk away. It's unnecessary to criticize the developer for seeking profit. If they offer something better, like a lower mileage or better condition on a used car, they will price it higher.
Potential Downsides of Link Bridges
If a direct link bridge connects to a residence building, consider what happens if the developer fails to maintain the property and it becomes a ghost town. Would people still choose to walk through a desolate area, even if it saves them time?
A slightly longer walk (e.g., 15 minutes) to a thriving, well-maintained area might be preferable to a shorter walk (e.g., 5 minutes) through a neglected one. The attractiveness of the overall environment matters.
HDA Protection and Public Infrastructure
Do not assume that HDA (Housing Development Act) protection guarantees the completion of amenities like link bridges or shutter bus services. HDA primarily ensures the completion of the residential building itself and the proper management of funds.
Link bridges, shutter bus services, and MRT stations often fall under the purview of state governments or local authorities ("Majlis Bandar"). These are public infrastructures that not all the developers can influence.
It is also unlikely to put the shuttle bus service into the SPA (Sales and Purchase Agreement) because the service might be cancel
Developers may submit applications to contribute to public infrastructure projects near their developments, but the government ultimately decides whether to accept their help. This contribution is rare. It's best not to rely on it. It also serves as one of the reason that "Fully Furnished Package" does not include any brand of the electrical appliances.
Prioritizing the Property's Core Value
Focus on the property's inherent qualities that cannot be easily changed. If those aspects are satisfactory, then proceed with the purchase. Features that can be improved later with additional investment are less critical at the outset.
Conclusion
In conclusion, remember that you are buying a property, not just a bridge, an MRT station, or a shuttle bus service. The house itself is the priority, whether for living in or for renting out.
Once the property's value is established, these additional amenities enhance its appeal. Think of the property as a steak: Does the steak itself taste good, or is the side dish more important? Similarly, link bridges, RTS stations, MRT stations, and other amenities are accessories.
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