The start of MRT and the rise of properties prices nearby

MRT Sungai Buloh-Kajang (Phase 1 of Line 1) has started. It’s 51km in total length with 31 stations. What are we going to do about it? Well, perhaps take advantage of the free ride for one month? Too bad, it’s not yet fully connected to the LRT so that it can bring me to the city centre. However, for those who does not yet own their first property, this is a good time to scout for homes nearby the MRT stations. No, not just Line 1 but also the MRT Sungai Buloh- Serdang – Putrajaya (Line 2). Some property experts were quoted in a recent MRT related article predicting the rise in property prices along the MRT Line 1. Read the full article in freemalaysiatoday or a brief below.

National House Buyers Association secretary-general Chang Kim Loong said, “Property owners stand to enjoy the higher capital appreciation that comes with enhanced connectivity.” His advice, “Buy from developers who have good track records and strong financial positions” He also mentioned that buyers should think about buying in areas less congested. (He did not mention the actual area but I think he meant less popular areas today) 

Auctioneer Suresh M said properties within 5 minutes to any MRT station should gradually increase in value. He said, “Even before the launch of the MRT, developers had already started using the project as a marketing point to sell their properties.” He also mentioned that areas with established commercial areas would fetch higher prices. For example, Mutiara Damansara, Kota Damansara and Bandar Utama. these locations have shopping centres, office blocks and other amenities and thus they are more attractive to potential house buyers. (I agree these are good and established areas but there is little need to only focus on these areas. It’s the best time to expand the acceptable areas with new MRT stations) 

Times are really slow according to everyone I know even though most people I know are still eating lunches which are easily double the price I usually pay for my lunch. Here: Eating cheaper is still possible, depends on us actually To be honest, there are only two real choices depending on what we believe in. Times are getting worse, better save every ringgit you have. “Winter” is coming. To those who believe times are ripe for opportunities, better stop doing non-value added stuffs such as hanging around cafes. Viewing properties may be a better choice instead. I believe the positive but unfortunately, I am just a working professional. I need time to save bullets. Haha. Happy riding the MRT.

written on 18 Dec 2016

Next suggested article:   Buying nearby cemeteries, what should we worry more?

 

3 thoughts on “The start of MRT and the rise of properties prices nearby

  1. The properties that are near to MRT would have already been priced in with higher selling prices. Many developers that launched their MRT properties employ this accessibility factor tactic to mark up their selling price so i am not sure whether the buyer can still enjoy superior returns in the next 3-5 year time. This MRT story has been so heavily promoted in the past few year (likely due to no better story) throughout the country, and conveniently used as the valid reason for developer to sell at higher price but I suspect the story and price are both artificially exaggerated or inflated. I myself would really like to see the success of MRT very much as the terrible traffic conditions in Klang Valley have been annoying me badly for the past 15 year.

    My recent casual & limited observation tell me that the LRT extension in Puchong and USJ are not attracting many new users yet.

    Regarding the comments to buy from ‘developers who have strong track records and strong financial positions’ may also imply a considerable premium on the price tag. Am also not sure whether this would be better than buying from smaller developer at cheaper selling price.

    Above just my two cent. What do you think?

    • Wk, I read thru word by word. Your observation is valid and I agree. As for my personal opinion, we can extend our search to areas within 10 minutes from the MRT stations too.need not be right next to it. Then our choices expand to more affordable options. Your two cents are worth five cents. Cheers.

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