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Properties located within the proximity of LRT stations enjoy fair capital gains and higher rental yields, as long as they are located within a fair distance away. Residential properties that directly face the stations, however, are not as desirable as the units further in. There is also concern of traffic congestion around the area. Properties will have no advantage if they are located close to LRT lines with no stations nearby.
She said, “Presently in Petaling Jaya (PJ), we can see the number of buyers outweighing the number of units in the market for sale at the Amcorp Service Suites. Owners there are most happy with the returns as some are as high as 15 per cent per annum based on the current rental rates and their purchase price.
“Those who purchased the units in the secondary market are still enjoying above 8 per cent per annum returns. Millennium Square in Section 14 PJ has also enjoyed good occupancy. A project completing soon, Paramount View being located next to the Paramount LRT station will stand to benefit from the from the easy access to the LRT services.”
Ai Cheng added that the Amcorp Service Suites had enjoyed capital appreciation. The developer’s price was RM270 per sq ft and today’s price is RM550 per sq ft. Rentals when it completed was RM1,200 per month for a fully furnished unit but today’s asking rentals are RM1,800 per month.
Ai Cheng advised that property buyers having LRT service close by will enhance values but the property must be the right distance away.
“Should the property be located too close, then the noise factor and aesthetics may be affected. You want to be just the right distance away,” she added.
She further added that the main factors property buyers look for always come back to location, affordability and the type of property. She opined that public transportation is important to a select group of people as not all use public transportation to commute, whether they are owners themselves or potential tenants.
Joseph Kong, real estate agent from Putra Realty shared the same view that properties near LRT stations have its advantages.
He said, “It (LRT stations) will improve property value and rental demand. People prefer LRT service to bus service as the former is more predictable and practical. We have customers who ask about the availability of public transportation and it is an important question. Meanwhile, property investors are looking at areas with LRT stations as they generally have higher rental yields.”
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