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KUALA LUMPUR: The second mass
rapid transit (MRT) line, which circles the Kuala Lumpur city centre (KLCC)
orbital and known as the 'circle line', is already in the final planning
stage. The details are expected to be announced in March.
“Its alignment must depict the current and future business districts in
Kuala Lumpur,” said Minister in the Prime Minister's Department and chief
executive officer of Pemandu Datuk Seri Idris Jala during an Economic
Transformation Programme (ETP) update to analysts and fund managers
recently.
In the longer term, a third line to Port Klang was being comtemplated, he
said. The circle line is expected to cover the hotspots surrounding the KLCC,
Jalan Bukit Bintang, the new Kuala Lumpur International Financial District
in Dataran Perdana, KL Ecocity, Pusat Bandar Damansara and Sentul, among
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Meanwhile, the “blue line” the first line which is a 50km alignment that
covers Sungai Buloh to Kajang, via Pusat Bandar Damansara and Bukit Bintang
is slated for completion in 2016. The network of all the three MRT lines
will be fully operational by 2020. “Greater KL now has a population of 6
million people. By 2020, we will have 10 million people. If we don't have
the MRT, the city will be choked. Right now, nearly everybody drives. This
is not sustainable,” said Idris. He added that currently 13% of people
commuted using urban transportation. Under the ETP, Idris said this should
increase to 50%, adding that the funding structure for the MRT would be
disclosed by end-February. “Apart from reducing travelling time, the MRT
will also cause property prices to appreciate because of better
accessibility. If your house is near the MRT station, prices will go up
because of the commercialisation created around the area,” said Idris. Some
analysts are wary of the ambitious plans laid out by Pemandu. “As usual,
it's a case of execution. Will the Government be able to actually implement
the project? We'll need to see it being done to believe it. More
importantly, how is the Government going to fund this project?” asked a
construction analyst.
Another analyst said the Government was likely to reduce cost by getting
developers to co-fund some of the MRT stations. On implementation, he said
that Pemandu would have learnt from past lessons of the LRT, monorail and
commuter train. Some brokers have notably been able to analyse the impact of
the proposed MRT comprehensively. In a Malaysia Market Strategy Report
titled “Property boom-boom” released on Jan 26, global investment bank UBS'
head of research Chris Oh said Malaysia was set to enjoy improved
connectivity in the coming years with the proposed infrastructure rollout of
the MRT system and possible high-speed rail linkage between Kuala Lumpur and
Singapore. He said the MRT captured the imagination of the people,
developers and investors. He expects property value around a radius of 20km
of the city centre to rise significantly. The preference would be on
developers who have vast landbank with high-density mixed development around
MRT stations. “Interest in Malaysian property will be fuelled by foreigners
looking out for higher returns (via undervalued currency and low entry
costs) than their home countries (Singapore and Hong Kong) and the absence
of significant restrictions on property ownership by foreigners,” said Oh.
Singapore-based DBS Research was the first to issue a property sector report
titled “Entering a Golden Era” on Jan 14, analysing the impact of MRT on the
property sector. The analyst, Yee Mei Hui, said: “The MRT system is expected
to be a structural catalyst for the rise in value of the real estate
surrounding MRT stations.” In the report, the firm was projecting boldly
that land values in MRT hot spots could jump by up to six-fold over the next
five years. She said the MRT would have a strong structural impact on the
Kuala Lumpur real estate, given that the KL city had been under-invested
since the last wave of mega-projects in the late 1990s. The new MRT will
create new opportunities for high-density mixed developments, urban renewal
and new suburban townships. In turn, this has boosted the potential for land
prices to reach new peaks with higher plot ratios and more commercial
developments. Other than existing prime areas, she identified KL Ecocity,
Pusat Bandar Damansara and Sentul as new locations for high-density
developments to watch out for.
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Such news and article is a verbatim copy from other websites and
is solely for the purpose of providing general
information about the proposed KL MRT, it may be changed by the Project
Owner of the KL MRT at any time and must not be relied upon in
connection with any investment decision. The website owner
should not be held liable for any informational errors,
incompleteness, or delays, or for any actions taken in
reliance on information contained herein.
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