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...

Outdated map

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

Petrol is cheap, car financing is high .. So why bother to take public transportations ??

Janji gaji xcukup makan ke roti ke bubur pon mesti belikan kerete

There are 29 and 36 stations along mrt1 and mrt2 line respectively. how many condo within walking distance to each station? total how many?

This post has been edited by icemanfx: Aug 3 2022, 02:02 PM

A long period of Paradigm shift may take up to 10-20 years or more. Govt need build more units around mrt lrt station prepare for inflation, recession or any unforseen future. Especially younger generation or old people facing financial pressure still can stay near mrt.

Believe will continue non-stop to build massive supply condos, apartments or flats around public transport station.

Price will go up or not really depend. But if the surrounding combo package good sure can go up. Coz demand higher than other mrt lrt spots.

This post has been edited by wotpian: Aug 3 2022, 03:27 PM

if for own stay, i definetly dont want find near lrt / mrt station bcos of the noise and crowd

I don't think so. Some mall like Cheras Sentral still cannot survive with an MRT station next to it.

If underground mrt lrt should be better.

Kerinchi station also quite sad. The mall that nestle it is literally dead.

Too near to super famous midvalley and no unique selling point, not like good neighbourhood mall Bangsar Village and BSC. Been there once... Really lousy mall.

With Abdullah Hukum Station connection open up more easy access to midvalley will even attract more ppl to go midvalley. Last time only can reach by ktm... KTM made huge profit after open up a station next to midvalley.

This post has been edited by wotpian: Aug 3 2022, 09:24 PM

However, the CBD next to kerinchi suddenly boomed.

While the mall remains dead

First thing first, Malaysia not an island. We don't have limited land space like HK / SG. Not to mention that everyone now can afford a car. (Even fresh graduate). And our petrol are still quite cheap compared to these countries.

Because of these factors, most Malaysian opted to stay away from density and all the hoo-hah when the age is catching up to them.

When I was young, I rented house near Wangsa Maju LRT. It was the best. I can go KLCC / Bukit Bintang without worrying transport. Not until I have a family and I prefer to live in a less dense and more serene place.

The only benefits living near to MRT/LRT for me now is the convenience, where I can easily replaced with car nowadays. So the properties near MRT/LRT for me are better for rental. Especially those who yet to able to afford buying own properties and looking to just live near to their workplace (fresh graduate / expats)

Definitely not for own stay unless you accidently bought or have no other choices.

So for the TS, it worth more if you know how to "monetize" it. If you think buying property is a sure-win investment according to auntie uncle, then this is not a suitable investment for you

This post has been edited by temptation1314: Aug 4 2022, 01:02 AM

personally....
if own stay... dislike near LRT / MRT station because of the noise and crowd... not forgetting the double park cars on the road... congestion

Property & Project near Public transport still worth it. Malaysia government will continue enhancing the public transport system in the main city, and klang valley instead of building more and more highway. As now our country public transport system is not yet matured and fully coverage like other country, but slowly our transport system will be changed bit by bit. We dont know our government will implement more and more restriction for car user in feature included

1. Car petron subsidised
2. Toll fee (price charged depend on timing peak session)
3. Car usage year restriction
4. Parking price rate in city / hour restriction
& etc. Somemore using public transport is more environment friendly, so i think property near transport is still worth it.

No matter how govt will continue to enhance the public transport, it's for future planing, don't wait until last minute when all price shoot up skyhigh can't come down. Even China so big, their few cities public transport also top notch and keep improving. So not just only suitable for small countries Singapore or HK area... Bigger countries like Korea, Japan also suitable. Jakarta Indonesia also rushing to build up the public rail system. Vietnam also dying to have it more public rail transport. Middle East oil rich countries now also working close with China try to build better public transport system in their own country.

For Malaysia especially in city area definitely suitable do for better public rail system and connect to few satellite townships or suburbs area. Govt will continue to build more houses around station.

This post has been edited by wotpian: Aug 5 2022, 01:28 PM

The problem with Klang Valley's rail is it is too KL-centric - nearly all lines meet in KL, hence the interchanges are mostly around KL too. There are many who stay at suburbs & satellite cities (PJ, SJ, etc) and work in KL, but at the same time, there are also many who stay in one satellite city (e.g Subang Jaya) but work in another satellite city (PJ, Kajang, Shah Alam, etc). Problem is, taking rail from one satellite city to another is too much of a hassle. Imagine someone staying in USJ and works in Bandar Utama takes the LRT from Taipan towards Pasar Seni, then change to MRT & travel to Bandar Utama when driving directly via the NKVE makes more sense in terms of time & distance?

What Klang Valley needs more are rail lines that interconnect suburbs & satellite cities - covering as far as Puncak Alam in the north, Klang in the West & Sepang in the South with multiple circular lines. MRT3 will be one such circle line but it is again, KL-centric. We probably need circle lines that crosses areas like Kota Damansara, Kelana Jaya, Subang Jaya, Kota Kemuning, Putrajaya, just to name a few.

It's a trend for KL centric direction. This is why expension still focus on KL city and spread it outward. Its cost saving too to focus 1 place infrastructure.

After many countries case study. The best it's still city centre centric, which can save more resources and let the business activities focus more in 1 place.

Just like Tokyo, Seoul, Ho Chin Minh city. For China which area is too big, but they will also focus on few cities to make it a mega size city. Basically a super size city is the direction and trend for future. Unless got better solution.

This post has been edited by wotpian: Aug 5 2022, 09:00 PM

bestest in syok sendiri.

Don't upset. It just almost all cities trend in other country as bigger scale city a mega city, not only in Malaysia KL. So susah for people to fry up the property price when supply is abundance.

TRX is not in CBD, not a Canary wharf either.

For your opinion which part of KL consider cbd?

I think the question is ceteris paribus whether people will pay a price premium to buy or rent a property near a MTR station. The last known study in KL was in 2017 by URBANMETRY. Google the company name in EdgeProp- the CEO is Cha-Ly Koh. It looked at price data for Greater KL for a single year 2015 . The price premium was 1%. But that was in 2015. Maybe as ridership increases there might be a different conclusion

Ceteris paribus means "if all else equals", its also used predominantly in economics. It seems like u dont even know that.

Let me pull out the article i got from gooling mrt properties in malaysia 2017 the edge.

https://www.theedgemarkets.com/article/home...best-performers


Homes near LRT/MRT among 2017’s best performers

"DESPITE the current property market slowdown, there are still some residential properties in Kuala Lumpur and Selangor that have seen strong transacted price growth in 2017. Notably among these properties, many were located near light rail transit (LRT) and mass rapid transit (MRT) stations. The positive impact from the enhanced rail transport infrastructure, especially with the completion of the Kelana Jaya LRT extension line and the MRT Sungai Buloh-Kajang line, cannot be denied — some of these projects even recorded double-digit price growth in 2017.

The latest data in the Malaysian Property Market Report 2017 published by the Valuation and Property Services Department (JPPH) recently showed that certain terraced houses, apartments and condominiums had witnessed significant capital appreciation. This was particularly evident among non-landed residential properties located near LRT, MRT and KTM Komuter stations."


I dont actually have a strong opinion on this. But the facts disagree with your comments.

Just off the top of my head, without much thinking. I can think of several mrt properties(low cost), that fetches a rental that is almost double of property without rail connection. Im talking about those low to medium cost apartments.

no matter it is MRT or LRT or Monorail. As long as there is nearby public transport it is consider OK for property value.

The tenant base in KV is primarily local young adults and the temporary work force. Convenience and connectivity is key so of course proximity to public transport is worth more.

The question is how close is desirable and whether it’s offset by the premium. Some people like to stumble out of bed into a station. Others may prefer something up to half a km away - close but not too close.

Not really. DPC and MK appreciate without a station, not to say those landed prop in KV, did bukit tunku, bangsar or Damansar Height landed appreciate due to lrt? Even surround twins tower prop appreciate, not becos of that klcc station, without twins tower, that station just another stop, nothing else.

Ease letting out better ROI mayb yes with a station nearby, ecspecially those lower end prop which expect better demand to lrt

Ok let’s preface by saying that in the absence of being in a higher socio economic area then yes public transport is a plus point for investment.

The areas you mentioned work on different fundamentals - mainly the community and prestige factors. They only cater to a niche segment for rental besides MK and DPC units.

Not many new places without MRT LRT can be like MK or DPC. To play safe it's still properties near mrt lrt best. Just try to find the best deal or lowest price lor.

Sad is now developer selling lrt price, any 500m lrt launch property, they selling you premium + price, pupil pay 3-5k rental per month, hardly just depend on lrt factor alone to justify the rental rate.

Those worthy mid low prop, mostly still in subsale, new one normally developer already add 'lrt cost' for you. Making it premium high end prop. but quality unknown.

aside landed which is rare in kl city right now

no new vped property will appreciate in value, be it mrt or not
but there is big difference in rental be it demand or rental rate for those with lrt mrt

but if it is too near to lrt mrt like link bridge to mrt definitely is more towards investment, take skyline as an example, directly beside lrt pudu with 2.2k units, more than 70% is for investment

it won't worth more in terms of capital appreciation, but it does have more demand for from tenants.

finally, stations with rich office workers taking lrt mrt is klcc station
you wouldn't wanna drive there in peak time which result in ultra sardine in klcc lrt station

go search ibilik for seri puteri condo, just directly beside lrt cheras

completed in 2011, was selling around 2xxk that time, rental now for master room still 1000

and look at exsim millerz old klang road without public trasnport, net price about 700k, master room also 1000

Hearsay there’s one condo near MRT kuchai lama, construction stop one year, many feared the worse is happened

Many kuchai lama people stayed nearby there also know that the buyers currently bleeding money with no lights at the tunnel


This post has been edited by jehhlim: Sep 17 2022, 05:43 PM

That’s to do with the developer and not so much about the location. People need to be wary of all the new developers that popped up past the property boom of 2014. It was seen as low hanging fruit to diversify from their core business and churn a profit. Obviously things have changed drastically since then and many may flounder if not completely fail in today’s conditions.

This post has been edited by Cavatzu: Sep 17 2022, 06:27 PM

Amazing! Projects from decent developers and near public transport always have good potential

Malaysia will never like Hong Kong even if the MRT station just next to their resident building. It is because in HK although car is cheap but fuel price is triple compare to ours and also most apartments in HK do not come with carpark while Malaysia new condo is start giving 2 carpark even for small unit.

Another big problem of Malaysia public transport is walkway is not favourable. Malaysia is a tropical country comes with hot sun or heavy downpour. We should learn from SG that the bus station is closer to their apartment and proper undercover walkway in prime area that people feel comfortable to walk even in sunny or raining day.

Not necessarily true. Myself kena burned in one development with direct walkway to MRT (reputable developer). But I attribute this to the "premium" selling price and the location (next to industrial area with no commercials nearby). However i believe the bottom has been reached. The only way is up now...

which mrt station?
btw are your unit facing mrt track? is it noisy?

Which MRT Station are you referring to please?

Kg. Selamat MRT. Unit facing another development so no MRT noise

buy and rent out

Based on my interactions with him, it’s SqWhere Sungai Buloh MRT.

Well the issue for one is that it’s Sungai Buloh and it was sold at a way premium price by SDB. Like literally double the going rate for the area. But they were sold on all the infrastructure in Kwasa that hasn’t happened yet.

The cautionary tale is if you were sold on a large scale fictional infrastructure project then don’t be too early or at least wait for that project to be near completion or you will suffer in the first few years and this is usually a pivotal time for all new property owners.

The only way now is up. Sometimes we learn expensive life lessons. But the good thing now is it is easy to rent out and at least got rental ROI to help pay the instalment. So yes, take care. Near MRT developments usually have better potential but have to take into account other factors too.