Jun 29, 2018
Should You Buy Property Near An MRT Station?
The Klang Valley Mass Rapid Transit (MRT) project involves the construction of a rail-based public transport network. Together with the existing Light Rail Transit (LRT), monorail, KTM Komuter, KLIA Ekspres and KLIA Transit systems, it will form the backbone of the Greater Kuala Lumpur/Klang Valley region. This integration will likely enhance property prices as it is expected to improve inner city connectivity. The first MRT line to be implemented will be the 51km Sungai Buloh-Kajang line. The line will have 35 stations and is expected to have a ridership of over 400,000 passengers per day when completed in 2017.
When the MRT-SBK(Sungai Buloh-Kajang) Line is completed, commercial property in the vicinity of MRT stations will be in great demand. This has proven true in Singapore, Hong Kong and Taiwan, where commercial and retail premises located near MRT stations enjoy good occupancy rates and high rental yields. The same scenario will likely take place in Malaysia as well.
Advantages of being near a MRT station
1) Capital appreciation is expected to be the highest for properties within a 500-metre radius of stations. A report by HwangDBS Vickers Research says that it expects land prices in key hotspots to surge 100% to 500% over the next five years, especially where potential interchange stations will be located.
2) Higher rental yields, as long as they are located within close proximity of properties.
3) Convenience, for both owners and renters who rely on public transportation to get around.
Article from iproperty.com