BY MAK KUM SHI
makks@thestar.com.my
Administrative district boundary and local authority areas. Source: Department of statistics
A WIDE range of transportation infrastructure at Western Klang Valley are expected to generate economic activities, enhance accessibility and mobility, and encourage new developments in the residential, office, and industrial sub-sectors.
According to the CH Williams Talhar & Wong (WTW) Property Market 2016 report, the bus rapid transit (BRT) project connecting Kuala Lumpur – Klang was announced. Expressway projects such as the Damansara – Shah Alam Elevated Expressway (DASH) are currently in the pre-qualifying stage.
WTW stated that West Coast Expressway (WCE), with 21 interchanges, will provide an alternative North-South Expressway along the west coast of Peninsular Malaysia. Total length of this expressway is 316 kilometres. It will be divided into eight packages and is due for completion in 2018.
WCE will cross over mostly rural areas with the proposed interchanges sited at Tanjung Karang, Sabak Bernam, Teluk Intan, Beruas, and Changkat Jering.
This big infrastructure investment may generate many downstream economic activities in areas that previously could be accessed only by state roads. WCE could boost Perak’s economy as main industrial areas of Lumut Port and Kamunting Industrial Park will have a better and direct connection to Port Klang.
WCE will also unlock several tourism spots such as Kuala Selangor, Teluk Intan, Pulau Pangkor and Taiping, which are popular with domestic visitors. WCE is set to create more job opportunities and is expected to generate GNI of over RM100bil for the next 10 years.
LRT3 and BRT, bridging Western Klang Valley and Kuala Lumpur
LRT3 alignment map. Source Prasarana
Transport officials had recently commented that a BRT line linking Kuala Lumpur to Klang is expected to be ready by 2018. Planned to be built in the middle of the Federal Highway, construction may start in the third quarter of next year, with the roadway widened to keep traffic flow smooth. The line will be about 34km long, with about 25 stations along it.
Land Public Transport Commission (SPAD) BRT division manager Norlela Osman said, “We will widen the highway before taking a lane for the BRT line.”
She added that the road corridor linking Kuala Lumpur to Klang would cover a total of 500km and that there were four operators there.
According to SPAD, a bus ride from KL to Klang now takes about 70 minutes. With the BRT, the journey will only take about 40 minutes. The new KL-Klang BRT is expected to see a ridership of 800,000 on both its trunk and direct services. About 80% of the KL-Klang BRT line will be connected to the LRT (Light Rail Transit) and KTM Komuter rail lines, with all stops linked to other bus services.
The proposed Light Rail Transit Line 3 (LRT 3) is a project developed in line with the Urban Rail Development Plan (URDP), under the Land Public Transport Commission. It is part of the National Land Public Transport Master Plan towards the development of a reliable, efficient, integrated, and sustainable land public transport system to enhance socio-economic development and quality of life.
It aims to connect Bandar Utama to Klang with a total distance of 36km and will comprise of 25 new stations. It will function as a backbone to provide rail services between the western corridor of Klang Valley and KL City Centre via the integration of five stations, including One Utama with Sungai Buloh – Kajang MRT Line, Station 3 with LRT Kelana Jaya Line, Stadium and SIRIM with BRT Kuala Lumpur - Klang, as well as Klang with KTM Komuter Batu Caves – Pelabuhan Klang Line.
According to Prasarana’s ‘Proposed Light Rail Transit Line 3 from Bandar Utama to Johan Setia Detailed Environmental Impact Assessment’ report, the LRT 3 will greatly benefit people in the Klang Valley in many ways. Besides enabling people to commute efficiently and in comfort, the LRT 3 will contribute towards avoiding further congestion to roads in the Klang Valley.
Transportation plans for future growth
Proposed Damansara-Shah Alam Elevated Expressway. Source: Prolintas
Media reports had indicated that the Selangor State Economic Planning Unit (UPEN) had initiated the Selangor Public Transport Master Plan Study (SPTMP) with the objective of curbing out-of-control and growing traffic congestion in urban areas by adopting the target figure that 60% of personnel travel should use public transport.
To cope with 60% of the urban travel that this scale of growth will generate, the SPTMP called for a structured plan, based on new mass transit, public transit lines with developments around stations, and transport hubs configured as high-density ‘transit-orientated development’ (TOD), to maximise convenience and accessibility.
The proposed public transport system services included the LRT Circle Line 2, serving a linear corridor of development running from Rawang to the Putrajaya transport hub via Shah Alam. In addition to this, a long term extension of the LRT Line 3 from Johan Setia in Klang was proposed, and it is intended to be extended as far as Salak Tinggi and Nilai, to integrate with the Malaysian Vision Valley.
Emergence of residential, office, and industrial developments in Western Klang Valley
The rapid development of infrastructure, such as the MRT, LRT and proposed highways have encouraged residential developments further away from the city. New landed residential schemes within a township/master plan are generally gated and guarded with ample green areas.
WTW stated that new landed residential developments are situated mostly further away from the city, such as Bangi, Shah Alam, Rawang, Cyberjaya, Kajang and Semenyih. Townships with comprehensive master plans are expected to thrive in the current tough market. Some of the noteworthy launches included Tropicana Aman in Tropicana Corporation and the new phases of Bandar Rimbayu by IJM Land on the former Canal City site at Shah Alam.
In the office sub-sector, Knight Frank Research’s ‘Real Estate Highlights 2nd Half 2015’ report stated that there were several notable announcements in 2H 2015. Naza TTDI Sdn Bhd continues to strengthen its business presence with the recent opening of its new headquarters, Menara Naza TTDI in Section 13, Shah Alam.
Selangor Development Corporation (PKNS) is spending approximately RM170mil on its new headquarters in Shah Alam. Laman PKNS sits on a 1.6 hectare plot of land in Section 14.
Khind Holdings Bhd, an electrical home appliance maker, is planning a mixed use project on a 65,340 sq ft land parcel in Setia Alam, Shah Alam as part of its diversification exercise. With an estimated GDV of RM150mil, the project will feature an office building (to be partly occupied by Khind), a retail component and service apartments. Construction is targeted to commence by 1Q2016, pending approvals from the relevant authorities.
The first ever office tower to be developed in Bukit Jelutong, Shah Alam, was recently unveiled. Block A of Radia Offices, is the result of a 50:50 JV between between Sime Darby Property Bhd and UEM Sunrise Bhd. Part of the Radia integrated development, which has a GDV of RM1.6bil, Block A, comprises 159 units of stratified offices with flexible built-up areas ranging from 825 sq ft to 2,001 sq ft. The units are priced at RM770 per sq ft on average. The office block is expected to be ready by 2018.
WTW commented that strong growth is anticipated, especially in terms of rental and prices, due to shortage of industrial supply, although the industrial sector of the Klang Valley is state-driven and is underrated by most investors. As of 3Q 2015, industrial supply remained unchanged, while the average rental rates in selected industrial areas remained firm. Incoming supply are concentrated in the Klang district, of which 2,015 units are expected to come into the market.
The introduction of incentives for industrial estates by the Government is expected to enable industrial estate operators to enjoy 100% tax exemption on statutory income for five years. This is likely to interest more developers to develop industrial estates in the Klang Valley.
WTW added that the aggressive promotion of aerospace industry investments by MIDA has led to the growth of aerospace investments into the country, where the projects in relation to manufacturing and maintenance, repair, and operations (MRO) grew to RM682mil in 2014, an increase of 76% from 2013.
Amongst the efforts include development of Asia Aerospace City in Subang by MARA, which is expected to commence work for Phase 1 in 2016 and slated for completion in 2018. The world class infrastructure will generate interests of aerospace industry manufacturers to expand their operation in the Klang Valley.
In conclusion, there appears to be continued confidence in the growth potential of Western Klang Valley, given several developments for residences, offices, industrial areas, and transportation infrastructure.
Transacted prices of selected industrial properties in the secondary market at Western Klang Valley
Source: Ministry of Finance’s Valuation and Property Services Department’s Property Market Report 2014
>> Mak Kum Shi is the content and consumer engagement manager for the property business unit of Star Media Group
