HSR — a double-edged sword?

THE Kuala Lumpur-Singapore High Speed Rail (HSR) could be a double-edged sword if it is not well-planned.

Having a HSR station in town may make it more vibrant but the opposite could also happen and the town may become even more quiet, says KGV International Property Consultants executive director Samuel Tan during his presentation on “Iskandar-Batu Pahat-Muar: A shining star?” at TheEdgeProperty.com’s “Symposium on Kuala Lumpur-Singapore High Speed Rail 2016” on Aug 27.

Focusing on the impact of the HSR on Malaysia’s southern region, Tan said the HSR could be a catalyst for the Johor towns of Muar and Batu Pahat where intermediate HSR stations have been proposed.

“Muar and Batu Pahat are manufacturing towns. HSR will not only bring in more businesses but also property buyers. With HSR, travel to Kuala Lumpur from Muar and Batu Pahat will only take about half an hour,” Tan said.

On the other hand, the convenience of the HSR may see the young working population from these towns moving out to work in the city such as Kuala Lumpur or Singapore. If their hometowns do not have enough opportunities, facilities and amenities to fulfil their demands, the Gen-Y may seek the brighter lights of the city.

Hence, he said it is crucial that within the next 10 years each local government starts laying the groundwork that could help them reap the full benefits of having a HSR stop in their towns. The HSR is expected to start operating in 2026.

“In the next 10 years, the government should work hard to improve the development of their towns in order to retain their young,” Tan said.

Another key to the HSR’s success will be the local connectivity.

“You can’t just build a HSR station without having efficient connectivity from the station such as buses and taxis to transfer people to places they want to go. It is meaningless if you have a nice station but there is no quick way to get you to your final destination. The HSR is important to Singapore and Malaysia, but connectivity at the stations is important for the success of the HSR,” Tan said.

Meanwhile, he believes the Iskandar Puteri station in Johor has a bright future as the improved transport system will be a push factor for factories or businesses to be relocated there. It is also possible to see a reverse of talent flow from Singapore.

“The HSR will have a greater impact on Iskandar Puteri due to its proximity to Singapore. There will be a seamless flow of people, relocation of factories, and services and demand as well as values of properties will increase,” Tan said.

He also raised another concern that would change people’s expectations of the HSR — the fare.

“Over in Singapore, it was revealed that the HSR fare from Singapore to Kuala Lumpur could possibly be around RM200 one way. I think for business travellers, it is a good deal because it is hassle-free, faster and more convenient. However, for daily users, the fare cannot be too steep. If so, then I don’t think there will be a significant increase in daily travel across the border,” Tan offered.

Nevertheless, daily travel is more viable between Kuala Lumpur and Seremban due to the shorter journey.

No right time, only right location

On when investors should start investing considering the HSR will take 10 years and is currently only in the preliminary stages of planning, Tan said when it comes to buying property, anytime is a good time to buy as long as it is in a good location.

“People have been asking questions like, how do they know when is the best time to buy land or property. My answer is now because in the real estate market, there is no such thing as the right time, only the right place,” Tan said.

Once the exact location of the HSR stations are announced, developers looking for land should buy “land anywhere” as long as they are close to the station location.

“It will never be wrong to invest near infrastructure developments. If it is wrong now, it will be right one day,” Tan explained.

Although the eight operating HSR systems around the world have impacted their local property markets differently, Tan believes the KL-Singapore HSR is likely to have positive effects on the local property market.

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

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This story first appeared in TheEdgeProperty.com pullout on Sept 2, 2016, which comes with The Edge Financial Daily every Friday. Download TheEdgeProperty.com pullout here for free.

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