By Adilena Amran (Malaysia Property Inc)
Improvement of the public transportation system id one of the main areas of concern by the government as the nation moves forward to achieving Vision 2020. Since 2010, the upgrade of extra train coaches for the Light Rapid Transit (LRT) and the introduction of ladies’ coach in Keretapi Tanah Melayu (KTM) Komuter have begun to bear fruit as commuters feel more and more comfortable and enjoy a more efficient transport alternative. However, the lack of an integrated system has been an issue in the past, thereby reducing the attractiveness of the existing system.
In order to create a nation with better connectivity, the government has suggested “The Improvement of Urban Public Transportation” as a key National Key Result Areas (NKRA). In 2013, the Ministry of Transportation has launched their Development Project for the Landed Sector NKRA and has recorded a few improvements are being made throughout the years. This system aims to ensure the key urban areas are well connected. In April 2013, Prasarana Malaysia Bhd (Prasarana) announced the third line for the LRT system as an extension of the existing LRT Lines which will connect Bandar Utama to Klang.
LRT Line 3 is expected to serve the main catchment areas such as Bandar Botanic, Bandar Bukit Tinggi 1 & 2, Bandar Baru Klang, UiTM Shah Alam, i-City, Glenmarie, Tropicana and Damansara Utama. The Construction of LRT Line 3 id expected to start in 1Q20166. Currently, the construction of Mass Rapid Transit (MRT) Line 1 is under way where approximately 60% of the line has been completed. It is reported that RM36 billion has been allocated for cost of MRT Line 1 from Sungai Buloh to Kajang that is expected to serve more than 400,000 commuters in the Klang Valley by the end of 2016.
Will the line extension and upgrade suffice the needs of Malaysians?
As mentioned, the rail line extension will be cutting through several main catchment areas. Once completed MRT Line 1 is expected to serve an estimated population of 1.2 million people. Consequently, the rail lines extension is expected to spur new developments in the surrounding areas. For instance, D’Sara Sentral, Sunway Nexis and Tun Razak Exchange are a few of the new mixed developments that are set to integrate directly with the MRT Line.
Most of such developments are expected to appear once the system id fully operational. Siva Shanker – CEO of PPC International Sdn Bhd highlighted that it is highly important to consider investing in properties located within the vicinity of the MRT Lines as better connectivity will enhance the capital appreciation by up to 15%. The percentage is seceded and proven through a few success stories in Singapore, Hong Kong and Taiwan.
The statement is also supported by Affin Hwang Capital Research, where the property developers with land banks along the RM25 billion MRT Line 2 or RM8 billion LRT Line 3 may anticipate at least 15% increase in capital appreciation for properties developed within 500 meter radius of the proposed stations. A few of the potential beneficiaries named are IOI Properties Group Bhd UOA Development Bhd, Mah Sing Group Bhd and YTL Land Development Bhd.
UOA is expected to launch their next megaproject after successfully developing the old Kerinchi into a vibrant mixed-use development renamed as Bangsar South. The new mega project involves a 28-acre land bank located along Jalan Ipoh. This megaproject will incorporate a mixed use development that shall benefit from the MRT Line 2.
Experts anticipate that projects surrounding such areas will be further enhanced once the public transportation system is fully integrated and functional, which is expected to fully completed by 2022. To entice the public to use the new facilities, it is reported that LRT Line 3 shall be making a route to connect two retail complexes – Tesco Bukit Tinggi and Aeon Bukit Tinggi, making it interesting and exciting for the retailers. MRT Line 2 is also suggested to cover highly populated catchment areas and is looking into the possibility of routes that are connected to several proposed 1Malaysia Housing Programme (PRIMA) project locations.
It is expected that the completion of MRT Line 1 and the further extension of LRT Line 3 and MRT Line 3 will foresee a long-term positive outcome to the property industry. At the same time, this will facilitate users’ daily commuting movements and reduce the issue of high traffic congestions within the key urban areas. With the proposed MRT Line 2, it is estimated to increase the number of ridership by 20% or 550,000 commuters daily.
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