The Keretapi Tanah Melayu (KTM) continues to lose out against newer rail systems.

By Joseph Wong

The influence of Keretapi Tanah Melayu (KTM) railway lines on property prices in close proximity to its stations is still ambiguous, as there is limited conclusive data that establishes a clear relationship. Contrary to KTM, newer mass rapid transit (MRT) and light rail transit (LRT) lines seem to garner more attention and preference from property buyers, as indicated by available data as well as the fact that property developers tend to build more transit-oriented developments (TODS) near them.

Analysts suggest that a lack of significant pull factors for KTM stations may be attributed to a perception issue regarding KTM services. Concerns such as late arrivals, service delays, crowded trains, flooded tracks as well as safety and security issues may have contributed to this perception. Additionally, the existing KTM routes, particularly the KTM Komuter introduced in the mid-1990s, might not align effectively with the evolving patterns of urban development.

While some appreciation in property prices for new projects near KTM stations has been observed, it is challenging to attribute this solely to the proximity of KTM stations. The appreciation is often credited to the influence of newer MRT or LRT stations that are linked to KTM stations. This underscores the higher frequency and capacity of MRT and LRT compared to the KTM system.

Only the KL Monorail, an elevated light rail system that runs along an 8.6km length connecting the commercial areas as well as providing connectivity to the MRT and LRT stations, has the lowest ridership of the four rail systems. But in all fairness, it is also the shortest rail service.

On average, the KL Monorail sees an average daily ridership of just under 30,000 passengers while the KTM only beats it by a mere 10,000 passengers to score a daily ridership of about 40,000 passengers. In sharp contrast, the LRT Ampang line and MRT Kajang line see an average of about 120,000 passengers daily each while the LRT Kelana Jaya line tops the list with an average daily ridership of over 160,000 passengers as indicated by data.gov.my. The MRT Putrajaya line has quickly ramped up to about 56,000 daily passengers since starting in June 2022. While the KTM certainly wins in terms of greater connectivity due to its outreach, the number of passengers is sadly fewer.

Ahyat Ishak, a prominent property investor, public speaker and author, emphasised that the effectiveness of railway stations, especially KTM, in boosting property prices is not necessarily guaranteed. KTM, he notes, is not in the same league as the LRT or MRT in terms of frequency and capacity to move people effectively. Despite improvements in KTM services, it appears that KTM has not been as effective as LRT and MRT in driving property prices near its stations.

However, Ahyat acknowledged the ongoing improvements in KTM services, suggesting that KTM could serve as a backbone line for the MRT and LRT systems to reach areas that were previously underserved. He envisioned a future where various rail lines, including MRT, LRT and KTM, are integrated into a comprehensive Greater Kuala Lumpur Metro system. According to him, the magic lies in the extensiveness of the lines, making each line more valuable and the entire network more productive.

While the impact on new properties near KTM stations may seem modest, the sub-sale market tells a different story. There has been a noticeable increase in sub-sale properties, particularly those meeting specific criteria. Buyers are seeking smaller units in the city area, integrated lifestyle developments, TODs with rail or public transportation links, migration to suburban areas, a greater reliance on public transportation, and a growing trend of young people opting to rent properties in the initial years of their working lives.

Sub-sales growth
While the impact on new properties may seem stagnant, especially during the pandemic years, the sub-sale market tells a different story. There is a notable increase in listed sub-sale properties, although specific criteria that must be met.

Buyers are primarily seeking affordable properties within the RM300,000 to RM500,000 budget range in the city centre. In the suburbs, the budget landscape shifts, ranging between RM800,000 and RM1mil for landed property, catering to a niche segment comprising established families, owner-occupiers and multi-generational families.
In short, the key preferences of buyers include:

• Smaller units in the city area
• Integrated lifestyle encompassing work, play, dining, shopping and recreation within a single location
• Transit-oriented development with links to rail or public transportation networks
• Migration of families to suburban areas
• Increased reliance on public transportation
• A growing number of young individuals opting to rent properties in the first 5-10 years of their professional lives.

In suburban areas, the KTM link linking to Sungai Buloh is slowly emerging as a strong place-maker, although its fullest potential is expected to materialise over time. This is partly due to the MRT Sungai Buloh line which connects to the KTM one, increasing accessibility. Notable developments around KTM stations, such as the Kuang KTM station near the Sungai Buloh interchange, suggest the potential for growth and increased attractiveness.

The potential of the KTM line cannot be underestimated as its revamped service and commercial appeal are still in their evolutionary stages. And the KTM could become an attractive long-distance player as indicated by the relatively stable property prices along Jalan Ipoh/Jalan Sultan Azlan Shah and other roads near KTM stations. This could be an indication that more and more people are looking at the possibility of the KTM system as a potential drawing point.
The average property price of properties along Jalan Ipoh has seen the transacted values from RM403,442 in July 2015 trending upwards to RM630,438 in August 2023. Taman Batu Tiga near the KTM Batu Tiga station also saw a hike in property prices. The transacted value of intermediate terrace houses saw an increase shifting from RM265,292 in November 2021 to RM434,511 in March 2023. However, this was the period after the LRT extension which saw the Ampang line extending all the way to Putra Heights with the intersecting lines of both LRT and KTM meeting at Subang, increasing the latter’s connectivity.
Similar cases have riddled around KTM stations, pointing out that while the property prices might not surge as fast as those residing near MRT and LRT stations, the KTM factor cannot be ruled out as a potential price mover. What is indicative is that the property prices surrounding the KTM stations just one or two stops from the LRT and MRT interchanges seem to see a stronger surge in pricing than those further away.
While conclusive data may not definitively establish the impact of KTM on property prices, the evolving landscape and ongoing improvements in KTM services suggest the potential for growth and increased attractiveness, especially when integrated with broader transportation networks.

Developers' land acquisition preferences
When it comes to securing land for future development, developers typically prioritise properties with intrinsic value. According to StarProperty data, developers tend to favour areas with existing infrastructure beyond the Keretapi Tanah Melayu (KTM) railway lines, especially if there is no comprehensive masterplan for urban redevelopment in the entire location.
However, there are exceptions to this trend such as Kota Kemuning, Rawang and Kajang. These areas have witnessed development even before the introduction of the mass rail transit (MRT) system, showcasing that there are instances where developers are willing to invest in locations without extensive existing infrastructure.
However, there has been a shift in developers' focus as they have been setting their sights on land near the newer rail lines, namely MRT, light rail transit (LRT), Express Rail Link (ERL) as well as the possibility of the high-speed rail stations. The anticipation is that property prices in these areas will continue to experience an upward trajectory.
According to the StarProperty data, these infrastructure developments serve as significant game-changers in the real estate landscape. As a result, new development epicentres will likely emerge, auguring well for the country's future real estate growth and development.

Here is a quick look at the estimated number of passengers daily:

Monorail= 30,000

KTM= 40,000

MRT Kajang line= 120,000

LRT Ampang line= 120,000

LRT Kelana Jaya= 160,000

MRT Putrajaya line= 56,000

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