Check out why Thomson Line is a big bunch of business blessing

The 30-km long line will benefit property developments and retail REITs.

According to UOB Kay Hian, the Singapore government has announced the alignment of the Thomson MRT line. The 30-km long line will comprise 22 stations from Marina Bay to Woodlands North. The line is expected to be fully completed by 2021.

Here's more from UOB Kay Hian:

Further expansion will see enhanced linkages to Eastern Singapore and Malaysia. The new Thomson Line will bring the MRT within walking distance to an estimated 160,000 households (15% of overall Singapore households). In Woodlands North, the Thomson line is expected to connect with the upcoming rapid transit link between Singapore and Malaysia, providing a seamless connection to JB Sentral and boosting business and tourism linkages between the two countries. 

From Marina South, the Thomson Line will connect to the future Eastern Region Line, which will run along the East Coast of Singapore towards Changi Airport.

Residential developments along the line will likely see 5-10% gains. Residential developments along the line will benefit from the improved connectivity and see renewed interest from home buyers. New developments with unsold units include City Developments’s Up@ Robertson Quay, Keppel Land’s Marina Bay Suites, UIC’s V on Shenton, UOL and SingLand’s Bright Hill Drive site. The resale prices of developments will see modest 5-10% gains.

Retail REITs will benefit from increased shopper traffic. Causeway Point, which is owned by Frasers Centrepoint Trust, will be a key beneficiary as the Thomson Line will enhance connectivity to Thomson and Lentor, bringing greater shopper traffic. Orchard malls such as Wisma Atria and Ngee Ann City, which are partially owned by Starhill Global REIT, will benefit from improved connectivity to Northern Singapore.

Office developers to see improved office demand. New upcoming office developments by GuocoLand (Peck Seah Street site), Keppel Land (Marina Bay Financial Centre Tower 3) and OUE (DBS Tower upgrade and retail podium development) will see improved tenant demand on the back of improved connectivity to their developments.

Industrial developments in Woodlands to see higher take-up. Industrial developments in Woodlands by OKH (Primz Bizhub and Woodlands Horizon) and Wee Hur (Harvest @ Woodlands) will also see higher take-up from SMEs and industrialists.