Part 6 How will MRT impact the property market? ‘Double-edged sword’ Integration is one of the critical factors to the long-term success of the MRT, and Tan cites examples of public transportation in Korea, Japan and Moscow as benchmarks of integrated Mass Rapid Transportation. “Unfortunately, here the integration of the transport system is not up to mark. There are too many concessionaires to facilitate integration and it is very discouraging. Integration would make the life of the public easier and more efficient. It would improve accessibility and travelling time. Blue collared workers would have cost and time savings. They could also widen their availability in the employment market. Companies would find it easier to recruit staff who live far from the locations of their working places. “In short, integration is one point that is always overlooked when planning for these transportation systems. For example, ample parking space is important at these MRT stations. Unless they have sufficient parking in and around these spots, it will create congestion and jam up the retail and commercial areas thus affecting the businesses at these stations,” says Tan while warning that having a MRT station linkage will not be a 100 per cent guarantee of success for a property unless accompanied by proper management and planning for access roads and other contributing factors. He cites the example of Plaza Pantai in KL that has the Kerinchi LRT station integrated within its building but has still performed poorly over the years in terms of rental yields. The Raine & Horne Associate Director also begs to differ from Sim’s point of view and feels that the new MRT lines would not result in too much decentralisation of the CBD or lower property prices in the KL City Centre. “Personally, I don’t see it. Some of the bigger shopping centres in the suburbs will have their catchment areas increased but in others I don’t think there will be any impact. “People are creatures of habit. We won’t go into an area unless we have a reason to. People will still go to town for shopping, sightseeing and other activities. For offices, there might be decentralisation but the MNCs (Multinational Companies) such as the oil & gas and financial companies would still want to be in the heart of town. So, the MRT wouldn’t affect KL city’s status as the CBD. If anything, it will probably improve it,” argues Tan. He also thinks that the MRT could be a double-edged sword in relation to the affordable housing issue, with savings from better connectivity perhaps being cancelled out by the projected increase in property prices in these MRT areas. Source : NEW STRAITS TIMES
Posted on: Thu, 19 Sep 2013 01:31:35 +0000
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