Disregard the hype: buyers won’t pay hefty premiums for property near MRT stations

Here's why KL isn't like Hong Kong where there are in fact price premiums for flats near MTR stations.

Unlike KL, in Hong Kong most people use public transport to get to work, from shop girls to Managing Directors of banks. Few people drive to work, even if they own cars. That"s because the city has an efficient and affordable public transportation network. At peak hours the MTR trains run at 2 minutes intervals.

But over in Bolehland the frequency that MTR trains run has been reduced to 7 minutes. Result : Lots of complaints by MTR users in KL about the frequency trains run according to a news portal.

Here's yet another reason why I think properties within walking distance of MTR stations aren't going to see any significant price premium. A 2017 study by Urbanmetry's Cha Ly Koh found the median price premium of properties located within 500 metres to completed MTR Stations was 1%.

I think but cannot be 100% sure the reason is most people in the Klang Valley do not use the MTR to get to work is they prefer to drive. See my 360 KLCC post :

"Are KLCC condos near malls worth more?"

Also having a first class MTR network does no good unless reliable and cheap First Mile Last Mile connections are also in place. KL still has a lot of work to improve FMLM connectivity issues.

The percentage of people who use public transport in Klang Valley sits at around 20 percent. The previous government aimed to get 40 percent of citizens to use public transport by 2020. The current government now hopes to achieve that by 2030. Will it succeed? What do you think ?

In my opinion Malaysians are not going to ditch their cars in favour of taking public transportation to work any time soon. Why? Putrajaya seems anxious to hang on to the votes of vehicle owners by ensuring every one of the 15 million+ registered vehicle owners gets access to heavily subsidised petrol.

Now it's worth pointing out our neighbors, the Indonesians and Thais do not subsidise petrol for THEIR drivers. That's because I think but cannot be 100% sure there isn't a ghost of a chance the opposition there will win any general elections.

Take away the petrol subsidy and maybe there's a chance MTR ridership will increase. But I won't be holding my breath this is going to happen soon.

Maybe after the next GE? 🤠

NEAR PUBLIC TRANSPORT = A SUPER CLEAR INDICATOR of MIDDLE/LOW END PROPERTY.


REAL HIGHER END PROPERTY = LESSER in DENSITY


Honestly, even well decorated kampung house consider luxury if u compare those mid-class condo.

Packed with Human and annoyance.

If rich enough can move far away from mrt station.

Places could be like DPC, Sierramas, Jade Hill and etc.

MD go take mtr sometime could be faster than his/her ahmad car. Or usually ask their ahmad wait them at city border mtr station. No need jam in, jam out wasting time.

Ahmad's time can waste but not MD.

Stay out of mrt area either you're rich or poor until can't afford stay near mrt station can only stay far ulu wasted area. Like those red Indian in America got genocide & kickout where they stay by the rich white man and put them in the wasted land.

This post has been edited by wotpian: Aug 2 2022, 07:33 PM

Agreed. Concepts from HK / SG / East Asia cannot be applied here. Basically investors are banking on public transfort being improved over the next decade/few decades and becoming a strong selling point.

Even though people drive more - public transport can become a greater option as time goes on.

Can apply, in HK you need to be super filthy rich only can stay far at middle hill landed. Or be their maid or ahmad. If you're rich only, can only squeeze with other like middle class near mtr. Maybe living environment slightly better.

Very lucky in Malaysia, you just need to be slightly richer among the riches.

This post has been edited by wotpian: Aug 2 2022, 06:02 PM

i dont think mrt property is supposed to be considered luxury property.

the comparison is flawed, mrt properties tend to be mid range properties.


for eg: A low cost apartment that would be worth 100k in any other place may be worth 250k-350k beside an mrt.

a rm1million condo property in a gated and guarded area might be worth less if it was beside an mrt.

the pool of tenants is different.

A criteria for Mainland China, HK and Japan to pay more or they think worth more... most of the time is grade A school nearby. Or some places the public rail system can reach to this grade A school in short time.

Above apply to most confucian influence countries or chopsticks countries. Vietnam, Korean, Japan, China, Singapore. Good School education bigger than anything.

This post has been edited by wotpian: Aug 2 2022, 06:13 PM

I used to work in a mall+condo that has direct connection with MRT, honestly most of them going to work or going out using car instead of MRT

The only people that frequently used the MRT is the expats or foreigners that lives at the condo

Rich people in this country have their own driver to bring them anywhere. They don’t care about using public transportation.

Luxury property especially condominium usually doesn’t have any mall below them or near public transportation. Some of the property owners want to live in a low density area and concern about Privacy. That’s what makes them interested to purchase the luxury property

This post has been edited by Alternate Gabriel: Aug 2 2022, 06:21 PM

It's for prop bulu to make moolah. Not for followers to harvest the fruits.

If you can stay near why not?

For investment maybe..
For own stay better dun

The traffic congestion due to those owner renting out room by room.. the cars all pile up till the main road also not enough parking

Then the constant noise from lrt mrt or ktm.. gong gong gong gong until forever..
Seriously dun get for own stay

MRT and lrt is not new to kl. If poorperly near mrt and lrt stations worth more, subsale transacted price would reflect.

One should look at properties that were erected when MRT stations weren't planned.

Those would be gem in the rough. One example is One South, currently transacted at below RM400/sqf. New condo coming up next door (behind Petron) would be RM600/sqf at least.

There needs to be a cultural shift for public transport uptake to increase.

Right now, we do have relatively good road infrastructure as well as affordable private vehicle costs.

Things like carbon tax and/or city toll tax as well as a cessation to subsidised petrol would push demand onto public transport but it would take a very bold government to do this.

The TOD property are decent for investment/rental purposes though for own stay maybe consider a property that is close but not too close in a more quiet enclave which gives you that occasional convenience when you need it.

for now, properties near super hot commercial area will have more demand like pinnacle sri petaling or the grand ss15... demand more than supply... my fren unit in pinnacle now 3 rooms FF getting 2.5k rental and he get to choose from options of 5 tenants at a same time that time... mrt lrt properties currently lack of this kind of demand or the rental price...

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Yes, indicate poorperly price follow price of surrounding area more than station alone.

Rich people got car, don't need to live nearby MRT/LRT

Agreed, most of the ppl seeking places nearby LRT/MRT are for a reason