The development of rail lines have a huge impact on real estate prices along its corridor and it also improves the standard of living of a large segment of urban population.
Prasarana Malaysia Bhd president and group chief executive officer Datuk Seri Azmi Abdul Aziz said rail projects like the Klang Valley Mass Rapid Transit (MRT) line were a catalyst for sustainable development and spurring economic activities.
"Because of the economic spillover from the MRT development, it will generate appreciation to property value. Property prices are expected to appreciate by between 10 and 20 per cent because of the MRT project. In fact, some areas are already seeing their property value go up," he said during a media walkabout here last week.
Azmi said a rail line directly impacted real estate through increase in land value, land use and densification along the corridor.
He expects residential and commercial (comprising offices, retail and hotels) areas to benefit from better accessibility and connectivity.
"Rail projects tend to create new jobs and business opportunities. The completion of the Sungai-Buloh Kajang MRT Line 1 will draw buyers to areas closer to the MRT stations. There are 31 stations along MRT Line 1 so you can imagine the kind of growth would take place.
"What was not visible before, will now become more visible and both developers and house buyers will go there," he said.
Property projects to spur traffic growth on the MRT
The second phase of MRT Line 1, from Semantan station to Kajang station, started operating last Monday.
The first phase, from Sungai Buloh station to Semantan station, started in December last year.
Azmi said MRT Line 1 will add value to several ongoing developments in Kuala Lumpur, such as the Tun Razak Exchange, Bandar Malaysia, KL118 and the KL Sentral transport hub in Brickfields.
The MRT line will integrate with the KTM commuter, Light Rail Transit and monorail systems at the KL Sentral.
In the future, MRT will be linked to the planned high-speed rail (HSR) system, connecting Kuala Lumpur (via Bandar Malaysia) and Singapore (via Jurong East).
"If you are travelling in the MRT, you can see several developments being carried out along the corridors. There are also some plots of land ready for redevelopment and we can expect developers to start building there. Some may have been waiting for the MRT Line 1 to complete before their launch.
"We expect all existing and new developments will help to increase traffic on the MRT. Since Phase 1 opened to the public, people have been using the MRT for all sorts of reasons from attending meetings, heading to work, shopping or just to have lunch somewhere," said Azmi.
Riding on MRT spillover effects
THE Klang Valley Mass Rapid Transit (MRT) is a long-term game changer to boost the country’s economy.
The whole MRT system (MRT 1, MRT 2 and the Circle Line), will create economic spillover activities and raise job opportunities, which in turn, will raise household income.
“The MRT will increase activities along the corridor. With the completion of the MRT Line 1, we can expect areas like Kajang and Sungai Buloh to benefit a lot with the existence of a station there. There will be new developments,” said analysts.
Mah Sing Group Bhd group managing director Tan Sri Leong Hoy Kum said the successful delivery of the MRT project marks another milestone of the country’s grand plan to move towards a developed nation status.
Leong said the company’s projects such as D’sara Sentral, Sungai Buloh and the upcoming M Vertica in Cheras, would get to enjoy the full MRT Line 1 service.
D’sara Sentral is a transit-oriented development that is situated right opposite Kampung Selamat MRT station.
Leong said the covered walkway with direct access to MRT station is slated for completion next month.
M Vertica is situated only 600m or seven minutes walk from the Maluri MRT and LRT interchange and is only 800m or 10 minutes walk from Taman Pertama MRT Station.
In Cyberjaya, Mah Sing’s Garden Residence is located 2km from Cyberjaya North MRT station and Cyberjaya City Centre MRT station. There is also an ERL station and Putrajaya Sentral located close to the project, allowing residents an easy access to KLIA, KLIA 2 as well as KL Sentral.
“Ever since the launch of our D’sara Sentral project, we have been looking forward to the completion of the MRT Line 1. We laud the government’s initiative and effort in improving the convenience of public transportation and we hope the improved infrastructure will further enhance the quality of life and economy of the country,” said Leong.