Some may think that condo units that provide easy access to MRT and LRT stations would command higher prices. However, based on Lamudi’s existing listings from January to December 2018, this is what we found out. Read on to know more.
People have different reasons for buying condominium units, such as moving closer to the office or school, starting out on their own, or making an investment that will turn into a profit in a few years.
In any case, one of the most important factors when purchasing a condo unit is its location, as the old saying on its significance in real estate still applies to vertical spaces. When choosing a condominium, buyers look at how close it is to business districts, schools, commercial establishments, and transportation hubs, as well as the overall characteristics of the environment surrounding the building.
The Manila Metro Rail Transit System, or the MRT, and the Manila Light Rail Transit System, or the LRT, are two of the most popular transportation methods in Metro Manila. With accessibility to transportation forming part of the decision on condominium purchases, Lamudi looked at the relationship between condo unit prices and the distance to MRT and LRT stations based on existing listings on the platform from January to December 2018.
Moving Around Metro Manila Through the MRT and LRT
The importance of the MRT and the LRT to the commuting public could not be overstated. Collectively, these trains serve over a million passengers daily, taking them to stations located across Metro Manila.
The current MRT Line 3 runs from North Avenue to Taft Avenue, stretching about 17 kilometers from Quezon City to Pasay City. There are also plans to expand the MRT system with the MRT Line 7, which will run for over 22 kilometers to connect the North Avenue station to San Jose del Monte, Bulacan. The North Avenue station will also link up to the planned Metro Manila Subway, which will cover 36 kilometers from Quirino Highway in Quezon City to the Ninoy Aquino International Airport in Pasay City. MRT Line 7 is expected to be completed in 2020, while the Metro Manila Subway is forecast to start serving passengers by 2025.
The LRT, meanwhile, is divided into the LRT Line 1 and LRT Line 2. The LRT Line 1 covers about 20 kilometers from North Avenue to Baclaran in Pasay City, with the ongoing expansion to stretch the line all the way to Niog in Bacoor, Cavite, by the fourth quarter of 2021. The LRT Line 2, on the other hand, stretches over 14 kilometers from Santolan to Recto, with an upcoming extension to Masinag in Antipolo.
MRT/LRT Accessibility for Condo Owners
With the locations that may be accessed through the MRT and LRT, some may think that condominiums located near the train stations will command higher prices.
People who regularly ride on the MRT and LRT will find it more convenient if they are living near the stations, which could drive up the sale and rent prices of condo units in such locations. Taking the MRT and LRT will get people to most of the most important places in Metro Manila, whether it be for work or leisure, so easy access to the stations may be considered as an important feature of a condominium.
There are certain issues with the MRT and LRT, including the long queues that are caused by the sheer number of passengers relying on the transportation network, as well as the occasional technical problems that the trains encounter. With the MRT and LRT serving millions of passengers daily, at least some of these people will likely have considered moving into a condo unit near the stations to beat the long lines if they have not already done so.
Based on listings on Lamudi from January to December 2018 shows the following:
Farther Away from MRT/LRT Stations, Higher Condo Prices
Based on Lamudi’s existing listings from January to December 2018, about 22 percent of Metro Manila condo units for sale near MRT and LRT stations are priced at over Php 150,000 per sq.m., while over 51 percent of condo units far from stations carry that price.
Meanwhile, about 19 percent of Metro Manila condo units for rent near MRT and LRT stations are priced at over Php 900 per sq.m., while more than 57 percent of condo units far from stations carry that price.
From these figures, it shows that condo units for sale or rent in Metro Manila are priced higher when far from MRT and LRT stations, as opposed to when they are located near them. There are a few exceptions to this trend, most significantly among condos for rent in San Juan and Manila. As what the existing listings on Lamudi revealed, people might still expect to pay higher prices when buying or renting condo units far from MRT and LRT stations.
One possible reason behind such a relationship between condo unit prices and their distance from MRT and LRT stations may also be attributed to the importance of location. While living near the stations improves accessibility to the major transportation system, it also places the condominium in a busy area. While transportation accessibility can be considered as a factor in choosing a condo unit, there is still a market for buyers who prefer to live away from the hustle and bustle that is usually found surrounding MRT and LRT stations, due to the millions of passengers and the commercial establishments that seek to take advantage of the massive foot traffic.
Another possible reason may be the difference in target markets between condominiums near and far from MRT and LRT stations. Condo units located away from public transportation such as MRT and LRT stations may be targeting people who rely on their own vehicles. These people generally have higher purchasing power compared to people who depend on the MRT and LRT to move around, resulting in higher sale and rent prices for these condo units.
The relationship between condo prices and the distance to MRT and LRT stations shows just one of the things that affect condominium rates, which is made up of a complex web of factors that are ultimately driven by the customer’s demand.
Sources: Wikipedia
*Minor edits made by the Lamudi editor 3-21-2019
