A colleague asked me about buying where the MRT 2 stations are. I asked why not buy near the MRT 1 stations instead since some stations would be operational by end 2016. The whole project would be completed in July 2017. He said since everyone is already buying properties nearby or next to MRT 1, he should focus on MRT 2 instead. I told him that the MRT 2 stations are not even finalised even if most of the time the proposed stations are normally quite confirmed. He asked if I have seen all the proposed stations. I told him that I do have one from ERE Consulting Group. Please refer below for a list of all the 36 stations prepared by ERE Consulting Group, dated April 2015.
When we look at all the 36 stations, we can see that there are some areas where the property prices remain on the low side. For example, the stations in the Northern and the Southern segments. This include even the area I have been staying for the past 9 months, Damansara Damai. It includes also areas where many would not think of making it their first choice yet. These are areas which are over 20km away from the KL city centre. On off-peak periods, 20km seems acceptable but on a daily basis, jams would stress many. Thus, perhaps MRT may be the solution for these areas.
Of course, one station stands out and that is the Tun Razak Exchange (TRX) for which the the High Speed Rail (HSR) KL – Singapore would stop in the future. If you are already very wealthy, I think this may be worth looking at because the entry cost is likely to be very high and may not be that affordable for many. However, if this is your first property, it may be more prudent to buy at places where you are able to accept as a home first. Even if this is your second property, make sure you and your family are willing to stay where you intend to buy. If you do, then the risk should be low because by the time it is completed and the price did not move up a lot, you can still sell your current place and move to your new place.
Would my colleague be buying? Actually, I told him that I would still prefer to buy secondary properties today and just rent it out first. MRT 2 is expected to be fully completed only in 2021. I think there are still time and there’s little need to buy and wait for so long even if most of the time these properties should increase in price based on the usual inflation or even the potential due to it being nearby MRT 2 stations. Thus, the decision is his to make. It would be his property number 2. Happy thinking.
written on 30 Apr 2015
Next suggested article: MRT Line 2 – Pandan no more, Bandar Malaysia instead.