Kuala Lumpur rising

KUALA LUMPUR (Oct 29): Kuala Lumpur has been named one of the world’s top five cities to watch because of its plans for public transport, said international property firm Knight Frank in its Global Cities report. The other cities are Dubai, Bangkok, Nairobi and Moscow.

“A city to watch is one which could grow into a more influential city, politically or economically, based on different factors,” said Knight Frank Asia Pacific head of research Nicholas Holt at the launch of the report this week.

Malaysia’s rapid urbanisation rate of over 73% has outpaced its investment in public transport, leading to traffic congestion, particularly in the city, the report said.

“After the completion of the Mass Rapid Transport (MRT) line and Light Rail Transit (LRT) extension which are currently being constructed, [and] once the third LRT line and second MRT line are finished, Malaysia’s transport efficiency will be on par with Singapore’s current rating,” said Holt.

The proposed Kuala Lumpur-Singapore High Speed Rail (HSR) is also eagerly anticipated, and is expected to be completed around 2020. The 330km journey between Kuala Lumpur and Singapore is expected to take just 90 minutes on the HSR. A typical road journey during non-peak season now takes between three and four hours. The HSR is expected to boost investment, trade and tourism in both cities, and catalyse the property sector, among others.

“Real estate opportunities are abundant along the route, and successful implementation will promote more development activity in the urban centres of Seremban, Melaka and Johor, as well as along the coastal corridor of Malaysia,” said Knight Frank Malaysia research and consultancy executive director, Judy Ong.

“The HSR is key in the 495-acre Bandar Malaysia project that involves the redevelopment of the Royal Malaysian Air Force airbase at Sungai Besi, where the HSR line terminates in Malaysia. It will be integrated with the MRT Line to establish Greater Kuala Lumpur/Klang Valley as an international metropolis,” Ong said.

The first line (Sungai Buloh-Kajang) of the Klang Valley MRT project will have 31 stations on its 52km route, and serve a corridor of 1.2 million people when completed in July 2017. The second MRT line (Sungai Buloh-Serdang-Putrajaya) has 36 stations and covers 51km. It will serve a corridor of 2 million people after completion in 2022. Consequently, the Kuala Lumpur office market may witness improved demand from multinational corporations when the HSR becomes functional.

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This story first appeared in The Edge Property pullout on Oct 30, 2015, which comes with The Edge Financial Daily every Friday. Download The Edge Property here for free.