KL-Singapore HSR stations need to be well embedded

KUALA LUMPUR (Aug 27): The Kuala Lumpur-Singapore High Speed Rail (HSR) link will not boost property prices if it is not well embedded, according to TheEdgeProperty.com product and business development director Alvin Ong.

Speaking at his session titled “Riding the HSR wave: Opportunities on the subsale market” in today’s TheEdgeProperty.com’s “Symposium on Kuala Lumpur-Singapore High Speed Rail 2016”, he said people are looking for convenience, citing his observations based on data collated by TheEdgeProperty.com.

“According to data by TheEdgeProperty.com, the top five highest rental yielding non-landed residential properties in Kuala Lumpur have a few things in common — one of them is the infrastructure such as transport connectivity," Ong said.

These top five non-landed residential properties with the highest rental yields are Panorama Residences (8.5%), Waldorf Tower (7.6%), 231 TR Serviced Suites (6.5%), Endah Promenade (6.2%) and Solaris Dutamas (6%).

However, he said the new stations will not boost property values much unless they are well embedded or integrated with good connectivity and retail for example.

“For example, you will need connectivity and retail. Property values will go up if the stations are easy to reach and convenient,” said Ong.

“If you are familiar with Panorama Residences, Waldorf Tower, 231 TR Serviced Suites, Endah Promenade and Solaris Dutamas, you will realise most of the projects are a part of integrated projects that are on or located next to a shopping mall, or close to public transport,” he noted.

Besides that, properties located in more developed, self-catering areas also enjoy better capital appreciation.

Ong cited areas at the fringes of Kuala Lumpur, for example Kepong, Bukit Jalil, Cheras and Old Klang Road, where subsale housing prices continue to grow despite the current market slowdown.

Meanwhile, TheEdgeProperty.com data also showed Centrio SOHO @ Pantai Hillpark (9.1%), Mont’Kiara Palma (8.2%), Pantai Panorama (9.6%), Pantai Hillpark (5.2%) and Changkat View (5.4%) as having the highest compound annual growth rate over four years.

“Pantai Dalam, Mont’Kiara and Dutamas are all developed areas that have every kind of facilities and amenities, be it connectivity, transport, shopping malls, schools or retail. These are what tenants or property buyers are looking for,” Ong said.

Organised by TheEdgeProperty.com, the symposium titled “Where to invest — Don’t miss the boat” is supported by The Edge Malaysia with Bukit Bintang City Centre as the presenting sponsor.

For more reports on the symposium, read the Sept 2, 2016, issue of TheEdgeProperty pullout. You can download the pullout for free at www.TheEdgeProperty.com.

Try out one of our super tools, the rental yield calculator, here.

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