Q&A: Is There a Link Between Property Prices and Public Transport System?

Last Updated on December 21, 2021 by Lamudi

The establishment of reliable infrastructure of any kind is typically beneficial to property prices, whether it is residential or commercial.

There is a saying among real estate professionals that the three most important considerations investors must make when acquiring land is location, location…and, well, location. As cliché as it sounds, it continues to ring true, as immediacy to good neighborhoods and needed urban conveniences makes for a good place in the property market.

Location, however, is not just limited to proximity, as accessibility can also make property highly desired and affect its value. In this edition of Lamudi Q&A, we discuss how local transport systems influence the property prices.

Q: Is there a link between property prices and existing transport systems?

The establishment of reliable infrastructure of any kind is typically beneficial to property prices, whether it is residential or commercial. Transport systems are no exception, as the presence of good and reliable transport services and structures greatly increase an area’s accessibility and livability, and subsequently the prices for properties situated nearby.

Increased Commutability Equals Business Worth

Public transport systems are a big motivator for developers and buyers when considering the location of property, which subsequently results in higher asking prices. In fact, an analysis of data conducted by Nationwide Building Society in the UK in 2014 found that London homes situated within 500 meter of train stations command price premium of 10.5 percent. Although no such study has been conducted as of yet in the Philippines, we can safely say that homes and condos near MRT and LRT stations are highly sought after.

From a solely investment standpoint, properties in areas with upcoming transport systems are much more desired than similar properties in areas without any foreseen increase in accessibility. Investors often speculate on the rise of property prices based on the announcement of plans for transport related infrastructure, increasing the demand in areas that stand to benefit from it.

Public transport infrastructure, such as the Metro Manila Skyway, made many parts of the metro highly accessible. Photo via IngImage

Increasing Accessibility, and Value, of Horizontal Properties

As mentioned early on, location apart from price is the key consideration property seekers make when deciding on their real estate purchases. For those intent on buying a home, this commonly means residential property in good neighborhoods and are relatively close to the best schools, hospitals, and commercial districts.

This demand for convenient locations has increased in the number of high-rise condominium developments in Metro Manila areas that are close to transport links and metro stations. However, demand for traditional horizontal properties has not waned, especially those that highly accessible. In Metro Manila, residential subdivisions close to major thoroughfares such as the South Luzon Expressway, Commonwealth Avenue, and C5 Road are quite popular and are becoming more expensive. Examples of these areas include BF Homes in Parañaque, Loyola Heights and the Scout Area in Quezon City.

Outside Metro Manila, cities served by expressways are buoyant residential real estate markets as well. Examples include Bacoor and Dasmariñas in Cavite, and Biñan, Cabuyao, and Santa Rosa in Laguna.


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