I was just reading all the threads about OCR and CCR gap closing. Anyway, here's my take on it.
Are we reaching a new stage of property paradigm? One where the city fringe is moving outwards? Especially with the advert of circle line, there are now certain previously CCR regions which are now less assessible or connected as compared to the new "city fringe" regions connected by the circle line.
Thus, last time Newton, Novena would be considered city fringe. They are CCR, but not quite CBD area. But today, this is being moved to Toa Payoh, Bishan.
What do we define by city fringe anyway? I have a new definition. You can reach Orchard Road within 15 minutes, and CDB within 20 min. Last time, when MRT was not so well connected, cars were the order of the day, and so Novena, Newton would be considered city fringe.
But today, using MRT, then it is the areas which are beyond those, nearer circle line that would be more attractive because of connectivity. Not only can they get to Orchard road in 15 min, they can also go to the east, or to the west directly within 15 to 20 min.
In comparision, those living in Newton, Novena would have to now travel backwards up towards Bishan to benefit from this increased connectivity.
At the same time, hubs have sprung up in residential estates throughout Singapore. Orchard road is now no longer the only place to go for shopping. Toa Payoh HDB hub, Bishan, Tampinies, Bedok, Jurong, they all have shopping hubs where you can buy everything you want.
This doesn't mean prestige addresses aren't important. They are, but if we want prestige, then the hottest place to be in these days is around the Marina Bay area. Or at least the places which are really right in the heart of the city. Novena and Newton suffers from being neither here nor there. They are not truely prestige, location wise, and yet, they are now no longer truely city fringe - once you factor in the MRT circle line connectivity.
The new hubs in further residential centres also create new clusters where pricing of houses may increase. Thus, Tampines and Bedok is an example of such a hub, so is Bishan, Toa Payoh, Serangoon, and in the rest, Jurong. Since they can't build shopping hubs and such amenities near every single MRT station. You to make sure your property is closer to such new "hubs".
Thus, Newton and Novena suffers from this. They are not in themselves a hub. You don't go there to shop, or I don't know how many people go there just to eat. And since Orchard road itself these days is suffering from such competition from the new shopping hubs, being one or two stations way from Orchard road is no longer the draw it once was.
So, are we facing such a new paradigm? Is that why certain OCR prices coninue to narrow the gap while CCR stagnants? Note that I am not saying all OCR will equalise. It shouldn't. That doesn't make sense because ultimately, there is only one CBD area where many go to work in. But the gap could narrow for certain segments of OCR which are linked into the MRT network well, and have developed shopping hubs of their own.
What do you all think?