The logistics and industrial properties, including warehouses, in NS are going to be the first to benefit from the new line
By FARA AISYAH / Pic By TMR
Property prices in Negri Sembilan (NS), particularly the industrial segment, are expected to increase drastically following the government’s decision to include the new southern alignment in the East Coast Rail Link (ECRL) project.
CBRE-WTW (CBRE Group Inc and CH Williams Talhar & Wong Sdn Bhd) MD Foo Gee Jen said the revised line of ECRL, which includes rerouting the line to go through NS, would definitely bring more developments to the surrounding areas.
“The logistics and industrial properties, including warehouses, in NS are going to be the first to benefit from the new line. The residential properties will later become the by-products of this improvement,” he told The Malaysian Reserve yesterday.
Foo also cited properties in NS like Labu, Sendayan and Rantau, are expected to thrive following the new development.
The RM44 billion project will now have 20 stations including Kota Baru and Tok Bali in Kelantan; Kampung Raja, Pengkalan Berangan, Dungun, Kemasik and Chukai in Terengganu; and Cherating, Kuantan Port City, Kuantan Port City 2, Kota SAS, Gambang, Maran and Mentakab in Pahang.
The 640km alignment will also have stations in Jelebu, NS; Putrajaya Sentral in the Federal Territory of Putrajaya; Bangi/Kajang, Port Klang and another proposed station in Selangor.
Foo said the original scheme, which included a tunnel from Bentong to Gombak, could not bring as much development, as the project was mainly constructed underground.
The 153,411ha Sime Darby Property Bhd’s Malaysian Vision Valley, which covers the districts of Seremban and Port Dickson, would particularly benefit from the new alignment, he said.
However, Foo said the main purpose of ECRL is not for real estate play.
The main reason behind the project is to bring the gap closer on economic developments between the East Coast and West Coast, where the main market is located, he added.
Echoing Foo’s view was Knight Frank MD Sarkunan Subramaniam, who said a successful negotiation of ECRL meant that Malaysia is going to benefit more in terms of investments, as well as strengthening the country’s trade.
“Currently, we do not have container trucks moving between the east and west, where we can transport more goods at reduced time and costs. ECRL will be a real boost for the economy.
“This is especially so for areas surrounding the Kuantan Port as it can have a better connectivity to Port Klang. As such, the industrial developments in Kuantan will definitely thrive after this,” he added.
Meanwhile, VPC Alliance (KL) Sdn Bhd MD James Wong also said the ECRL project would do good to the industrial properties in the surrounding areas of the stations.
“Particularly, the logistics and warehouses in Port Klang. This is because goods from the East Coast can be transported to Port Klang, where the goods will then be distributed to other parts of Malaysia, Singapore, Indonesia and other countries.
“Putrajaya will also thrive as it will be a transportation hub,” he said.
Wong added that the ECRL will likely promote transit-oriented developments within a 5km-radius of the stations that include a mixture of affordable housing, retail, offices and hotels.