KUALA LUMPUR, Feb 18 (Bernama)
-- The land value in key hotspots in Kuala Lumpur can see an appreciation of
between 11-35 per cent per annum due mainly to the proposed Mass Rapid
Transit (MRT) project, says HwangDBS Vickers Research.
The key hotspots are KLCC-Bukit Bintang, KL Sentral, Pusat Bandar
Damansara-Damansara Heights, KL Eco-City-Midvalley and Sentul.
The MRT project was also described as a structural catalyst to propel Kuala
Lumpur's real estate to new heights. HwangDBS Vickers Research associate
director Yee Mei Hui said the appreciation in land value over the next two
to three years is driven by higher selling prices for end properties, higher
plot ratios and more commercial zoning.
She said investors should pay
attention and participate in the RM43 billion MRT theme in the months and
"With a multiplier of three times,
the MRT will have a huge impact of RM210 billion over 10 years on Malaysia's
economy and significantly improve Kuala Lumpur's liveability and vibrancy,"
she told a media briefing today.
The MRT project under the
Greater Kuala Lumpur Plan is the largest infrastructure development ever
undertaken by Malaysia. Elaborating further, Yee said the MRT project
could encourage more joint ventures, mergers and acquisitions as well as
property players hunting for landbanks. For those who don't have a
landbank they need to move quite fast. "Properties near MRT's will tend to have a 20 per cent to 30 per cent premium," she added.
According to Yee, the biggest beneficiaries of the MRT project are
developers or owners of large landbanks near MRT interchanges in Kuala
Lumpur city with high density development potential. She said they have
strong and well-connected shareholders with strong balance sheets and a
track record in high density development to bid for MRT stations to be
integrated with or located near their projects.
"Our top picks are YTL Land & Development Bhd, Selangor Properties Bhd,
Guocoland (M) Bhd, Bolton Bhd and SP Setia Bhd which have the highest
Revalued Net Asset Value exposure to potential interchanges," she added. She
said although the targeted completion of the MRT is still a while away, from
2016 to 2020, property prices would start moving ahead as developers price
in improved accessibility and higher traffic from the MRT.
The government has kick-started a three-month public display of the approved
MRT Blue Line to gain feedback from the public and more details may be
unveiled following the completion of the Urban Rail Development Plan
expected in March this year. Yee highlighted that the MRT project would
likely hug major highways which should help minimise land acquisition cost
and construction delay.
"With the MRT project, the government would not have to acquire more land as
highway reserves are being used. This would minimise land acquisition costs.
"We see strong potential for MRT players to outperform in the years ahead,"
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