Infrastructure impacts property values

KUALA LUMPUR: Property values are expected to climb as infrastructure developments are being completed and more projects are rolled out nationwide, especially in the Klang Valley, Selangor, Penang and Iskandar Malaysia in Johor.

“It is common for property values to rise in tandem with infrastructure growth. The general rule is the better the infrastructure, the better the values,” said Ho Chin Soon, director of Ho Chin Soon Research Sdn Bhd.

Some areas have already started to see the benefits in the form of demand and increased values because of the growth potential.

An example is Dataran Sunway in Kota Damansara. According to a real estate agent, property prices in the area are on a steady upward trend due to the proposed mass rail transit station on the Sungai Buloh-Kajang line.

Highways in the Klang Valley such as the four new proposed highways — Damansara-Shah Alam Highway, Serdang-Kinrara-Putrajaya Expressway, Kinrara-Damansara Expressway and Sungai Besi-Ulu Kelang Elevated Expressway — are also expected to increase property values of surrounding areas.

Ho: It is common for property values to rise in tandem with infrastructure growth.

Penang and Iskandar, which are already property hotspots, are also expected to receive further boosts to their values with the number of infrastructure projects in progress or about to start. Among them are the Second Bridge project in Penang and the proposed MRT link from Johor to Singapore. The latter will bode well for investments in Iskandar, said Ho.

Ho said other factors such as the respective state development policies and demographic trends such as migration rates and birth rates are also crucial.

Ho will share his latest findings on infrastructure growth in Greater KL, Iskandar Malaysia and Penang and their impact on real estate values at The Edge Investment Forum on Real Estate 2012. Ho’s talk is entitled “Infrastructure Growth in Greater KL, Iskandar and Penang: Where to put your money?”

With the theme “Investing in Uncertain Times”, the forum will be held on April 28 at the Sime Darby Convention Centre in Kuala Lumpur.

This article appeared on the Property page, The Edge Financial Daily, April 13, 2012.

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