Klang Valley Mass Rapid Transit (MRT) has finally started in
Kuala Lumpur. It will be an underground construction project as Klang Valley is
the busiest and most densely developed centre where there will be no extra
spaces for MRT to be built above ground. The way the MRT stations are designed is
that there will be residential and office units found right on top of the MRT
stations. The MRT projects are expected to have tremendous positive impact on
the overall property market as well as economy in general. The value of properties
located just above the stations or along the route is estimated to rise steeply
in the near future. Many developers have already make use of this business
opportunity to start making money by planning to build property on the surrounding
area of MRT stations.
In other countries like Singapore, Taipei and China, the
property or rental prices will go up if the property is in the vicinity of the
MRT stations. The same thing will happen here, in Kuala Lumpur. The value of
property is estimated to appreciate at least 10% to 25% depending on range of
the location to the stations, either near or far.
The main reason why the property price increase is there
will be a greater demand from the buyers either for their own stay or
investment. Most of the people will choose to buy or rent the houses or offices
which are located within the walking distance to the MRT stations due to the easy
access to transportation. Thus, the property buyers and investors are competing
at the same time. Property buyers want to buy a home for their own stay or an
office to set up their business as such location will definitely generate more
customers to their office. On the other hand, property investors are eager to
buy a house or office to make a profit by renting it out to people.
Besides, the MRT station itself is an attraction of all
other businesses such as shopping malls, banks, restaurants, coffee shops, mini
market and so on making that area a strategic location. We all know the three
words in real estate, location, location and location. A strategic location
will definitely pull up the property price.
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