MRT has anything to do with overall property market in KL?

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.