KUALA LUMPUR: The Real Estate and Housing Developers’ Association of Malaysia (Rehda) believes that the Greater KL and Klang Valley Mass Rapid Transit (MRT) project will have a positive impact on the property market and economy in general.
Rehda president Datuk Seri Michael Yam told a media briefing that the impact on the economy will be from the creation of jobs, enhanced tourist activities and the stations themselves will act as a pull for businesses as well as social and cultural activities.
“With 30 over stations, this will promote a lot of business opportunities,” he said. “The stations have a wealth creation effect. The way the stations are designed is that you can get residential units and office units right on top of the stations so there’s some assurance of success when you take tenancy in those places.”
“In other countries like Singapore, if your property is in the vicinity of the MRT station, rentals will go up,” added Yam. “In Taipei, property prices go up as do other products in other countries which are in the vicinity of the MRT stations,” said Yam.
He added that there will be higher density developments in the areas where the MRT reaches, spurred by better accessibility. It will also enable developers to expand their footprints in newer areas.
With ample supply of new projects and hence wider choices for buyers, price growth will be more gradual and reasonable, said Yam. Increase in land prices however, will be mitigated by higher plot ratio.
With the MRT line, Rehda expects residential units to be smaller to cater to primarily single occupants or young couples without children. The units will also be more self-contained.
This article appeared on the Property page, The Edge Financial Daily, January 20, 2012.