HSR

WHERE are the next property investment hotspots along the planned route of the Kuala Lumpur-Singapore High Speed Rail (HSR)? Well, we could consider cities and towns with a strong working population or with strong tourism elements, said real estate experts during a panel discussion entitled “HSR — The Big Idea” at TheEdgeProperty.com’s “Symposium on Kuala Lumpur-Singapore High Speed Rail 2016” on Aug 27.

According to Ho Chin Soon Research chairman Ho Chin Soon, among the seven potential growth locations where the proposed HSR stations are, Greater KL, Ayer Keroh in Melaka, and Pagoh or Muar in Johor are his top three choices.

Ho said the HSR will change the way people travel and do business as it shortens the travel time from Kuala Lumpur to other states in the southern region all the way to Singapore.

“The improved connectivity will move the locational centre of gravity from the central region to other places. For instance, highway connectivity has shifted the centre of gravity from Petaling Jaya to Puchong, and now the HSR will open up more areas and opportunities,” he said.

Greater KL will definitely benefit especially from the upcoming Bandar Malaysia in Sungai Besi. Meanwhile, the centre of gravity for Kuala Lumpur’s Golden Triangle is also gradually moving towards Bukit Bintang, he added.

The other panellists were BBCC Development Sdn Bhd CEO Datuk Richard Ong and Savills Malaysia executive chairman Christopher Boyd. The panel discussion was moderated by TheEdgeProperty.com managing director and editor-in-chief Au Foong Yee.

BBCC’s Ong said besides Greater KL, he also sees bright prospects for Ayer Keroh in Melaka due to the draw and spillover effect from Melaka’s tourism industry.

Meanwhile, Boyd suggested that Putrajaya, which has a good concentration of working population, could also hold great potential for growth.

The panellists believe the HSR could be a great boost to Malaysia’s transborder transportation system which will encourage bilateral business and job opportunities. However, they stressed that the private and public sectors need to work hand-in-hand to fill the missing links in the overall transport system to allow for seamless transport connectivity.

Ong noted that Singapore is the best example for seamless connectivity between facilities such as covered pedestrian walkways between their public transport systems.

“The connectivity between all public transportation systems, such as the Mass Rapid Transit (MRT), the Light Rail Transit (LRT) and public buses needs to be improved to effectively connect people from the various stations including the HSR stations, to other locations,” he said.

He said BBCC, which is located on the former Pudu Jail site, will set an example by connecting the MRT, LRT and monorail systems and providing greater convenience to commuters who travel from or to the nearest HSR station in Bandar Malaysia.

Apart from connectivity, Ong said young buyers and the working population are getting more sophisticated. Hence, developers need to be creative to integrate various elements including recreational amenities into the design of their developments to cater to their needs.

Although many people are looking to tap on the growth potential that the HSR can bring, Boyd reminded that infrastructure development is a long-term thing which will not create an explosion in value in the short term.

“Investors could tap on the opportunities to invest in properties along the HSR line, but they must also bear in mind, there will not be an overnight boom effect even after the HSR starts operation. Based on the experience of countries which already have the HSR, it will take some time to see the impact of the HSR on rental yields and capital appreciation,” he explained.

Besides this, Boyd also noted that the HSR fare structure will be the key to determine whether the HSR will become the main transportation choice for both business owners and public users.

“The operator needs to be constant with the fare structure and price adjustment policy, by not raising the fares every year, to encourage people to travel using the HSR,” he said.

The symposium was organised by TheEdgeProperty.com and supported by The Edge Malaysia. The presenting sponsor was Bukit Bintang City Centre (BBCC).

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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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