Will property prices be hit by the axing of MRT 3 (Circle Line) by our PM Tun Dr. Mahathir? Of course it should not affect the whole Greater KL property market but the line would pass through these key stops: Ampang Jaya, Jalan Bukit Bintang, the Tun Razak Exchange, Bandar Malaysia, Kerinchi, Pusat Bandar Damansara, Mont Kiara, Sri Hartamas and Sentul. Actually, this is the MRT line which will be passing through densely-populated areas. It is the line that will integrate the first two MRT lines as well as other rail transportation. So, perhaps it will be the one affecting property prices the most? Personally, I do not think so but the below would be prominent experts discussing this in an article in Edgeprop.my The full article for reference here. In brief, the answer is NO. ” Property prices will not be affecting property prices along the MRT Line 3.”
Some of the prominent expert’s opinions as below:
CBRE|WTW managing director Foo Gee Jen said the MRT lines will be incomplete without the MRT 3. “Some of the developments surrounding MRT Line 3 have been given a high plot ratio for development with the anticipation of the scheduled completion date, [and with the scrapping of the MRT 3] this will affect the efficiency and day-to-day business process.” (A very objective and logical comment actually. Perhaps the authority may have to revise the plot ratio next?)
Goh Bok Yen, director of MAG Technical and Development Consultant Sdn Bhd says that there is a need for a multiple model transit system which could connect the existing rail transportation, including LRT, MRT, Monorail and KTM. He added, “However, the cancellation of MRT 3 also means that there will be a need for alternatives, such as increased bus or coach services, to connect the missing links of the existing public transportation system.” (Yes! Increase transit services would be good for now. Make the MRT Line 1 busier first. Change people’s lifestyle so that they think of MRT as Malaysians Ride This)
As for whether some developers would lose out after buying land along the alignment, Tang Chee Meng, chief operating officer of Henry Butcher Malaysia said, “It [the decision to call off the MRT 3] will impact the developers, who bought and planned developments along the MRT 3 line and were banking on the potential of value appreciation. This (the cancellation of MRT 3) will [also] inject more uncertainly into the current soft property market, especially following the dampened infrastructure construction sector. I foresee in the industry maybe be a property glut in the short term.” (I would say that the property market slowdown is due more to sentiment rather than the market demand. As long as sentiment turns positive, the buying will start) Please do refer here for full article where there are other experts’ opinions too.
The general conclusion thus far is that MRT Line 3 is NOT a bad thing. However, perhaps this is not the best time to be building it yet. Perhaps it’s even better to wait and see what’s the demand like since MRT Line 1 and Line 2 will both be fully operational by 2022, or earlier maybe. Perhaps the comment from The One Property International’s Yew sums it up best the typical opinion from the many property people in the market: “I believe the cancellation of MRT 3 will not be forever. The freeze is just for the time being while the new government needs to prioritise other issues. I have no doubt that the upgrade of city’s transportation infrastructure plan is part of the long-term development plan.” (Yes, I definitely believe public transport projects will continue and that includes even the High-Speed Rail in the future, if not within these few years. Let’s not have the One Belt One Road HSRs stopping only in Bangkok from China’s Kunming. Happy following.
written on 1 June 2018
Next suggested article: Reasons why MRT should affect your property buying decisions