News: MRT Station Proximity Now a Measure of Properties’ Desirability

Jan 4, 2018

 
The attractiveness of properties in the country are increasingly being evaluated based on their nearness to stations in the Mass Rapid Transit (MRT) line, according to Savills Malaysia.

“Working together with ride shares, the MRT is providing a credible public transport network that is long overdue in this city. This will focus demand around stations and reshape the pattern of property values in Greater Kuala Lumpur,” said the property consultancy’s Managing Director Datuk Paul Khong.

“In other countries such as the UK and Australia, you see many agencies advertising a property based on its distance from the transit lines. This is now happening in Kuala Lumpur. Not only will this apply for residential properties but also for commercial and retail properties,” noted its Executive Chairman Datuk Christopher Boyd.

This is among Savills’ top four most important news for Malaysia’s real estate industry in 2018. The other three stories include Tun Razak Exchange (TRX) emerging as the country’s most successful commercial project this year, logistics facilities becoming the star of investors in the industrial sector, and Malaysia named as the top market for new retail brands expanding into the ASEAN region.

“TRX is on track to be the most successful masterplanned commercial development ever. It has already attracted an array of international and domestic institutions in one central precinct. These include HSBC, Prudential, Affin, Mulia and Lendlease,” it explained.

“True to its original plan, the 70-acre site will redefine the golden triangle of the nation’s capital and become Malaysia’s undisputed financial hub.”

The property consultancy pointed out that TRX has accomplished stellar growth in terms of development speed and market acceptance.

In fact, Menara Prudential is expected to be ready by end-2018, followed by the 2019 completion of Affin’s headquarters and Mulia’s Exchange 106, Malaysia’s tallest building. By end-2020, HSBC’s HQ will also start operating there.

Meanwhile, Savills highlighted that logistics facilities in the country are expected to become more sought-after by investors due to the growing popularity of e-commerce.

“Just as online retailing has had an impact on the retail market, the move to same-day delivery is bringing fundamental changes to the industrial sector. As the whole logistics supply chain brings disruptive change, we have seen significant increase in demand for large sites in strategic locations.”

“There will be some major acquisitions and development of logistics assets as e-commerce gathers pace, primarily with Alibaba’s move into Greater KL to adopt it as its regional logistics hub.”

In addition, the property consultancy expects Malaysia to become the top market for new retail brands spreading their wings into the region.

“For new major retailers expanding into this region, Malaysia provides the best ease-of-access and most promising demographics. In 2017, we have seen the entry of new-to-market names like Max, a highly successful fashion brand from Dubai; HLA, a high street major from China; LC Waikiki and De Facto from Turkey.

“Malaysia is attractive for many reasons, and for most retailers, it is easy, transparent and geographically strategic,” Savills added.
 
Image sourced from Radio Traffic Technology

 
This article was edited by the editorial team of PropertyGuru. To contact them about this or other stories email editorialteam@propertyguru.com.my
 

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Ahmad Darul Azhar bin Mohamed Ali
Real Estate Negotiator
Chester Properties Sdn. Bhd.
darulazhar@yahoo.com
(+60) 19-3596858