The second mass rapid transit (MRT) line, which circles the Kuala Lumpur city centre (KLCC) orbital and known as the “circle line”, is already in the final planning stage. The details are expected to be announced in March.
In the longer term, a third line to Port Klang was being comtemplated. The circle line is expected to cover the hotspots surrounding the KLCC, Jalan Bukit Bintang, the new Kuala Lumpur International Financial District in Dataran Perdana, KL Ecocity, Pusat Bandar Damansara and Sentul, among others. Meanwhile, the “blue line” the first line which is a 50km alignment that covers Sungai Buloh to Kajang, via Pusat Bandar Damansara and Bukit Bintang is slated for completion in 2016. The network of all the three MRT lines will be fully operational by 2020.
The London Underground Circle Line.
I used to take the Circle Line everyday - from Bayswater to Barbican (where my uni is). The service was somewhat quite poor, as the wait for the trains are ridiculously long. I always allow extra half an hour for my journey - to allow for train delays, over congestion of the trains and so on.
I admit that I am excited about the KL MRT's Circle Line. After all - it is going to go through some major commercial and retail areas. This is somehow like Bangkok's Metro - which goes through primarily the shopping areas (I guess it is to boom the tourist industry?). Anyways - having a MRT that goes through KLCC, Bukit Bintang, the new Kuala Lumpur International Financial District in Dataran Perdana, KL Ecocity, Pusat Bandar Damansara and Sentul would be really good - not just for commuters, but also for properties in the region.
The Circle Line would benefit so many big-time developers - such as YTL Land as it goes through its signature Sentul developments (I would see an upside for its properties there such as d6 and d7 and future d series office developments), then for S P Setia as well for its KL Eco City, the 1MDB for its Dataran Perdana as well as Guocoland for its Damansara City at Pusat Bandar Damansara.
The Capers, Sentul East by YTL Land.
The benefits would not just be limited to these developers - think about its spillover effects. Depending on its routing through Sentul (which one would think benefits YTL the most), it will also benefit the Low Yat Group (whom I heard has got plenty tracts of land in the area) as well as many smaller developers there. I foresee a sudden emergence of SOHO/Studio developments in this area.
The KL Eco City land - just across the MidValley developments.
As for the KL Eco City, another major beneficiary would be the IGB Group - with its signature MidValley/Gardens development just minutes away. It is already benefitting from its prime location in between KL and PJ as well as the KTM and its close vicinity to KL Sentral - having the MRT so close would just benefit it more! The MRT going through the KLIFD/Dataran Perdana and Bukit Bintang area would benefit many small land owners around the area; but I believe there would be some primetime investor/developer buying up the smaller bungalow-sized tracts and perhaps a possible amalgation of the plots for a larger development?
The Damansara City 2 in Damansara Heights.
Guocoland - with its latest major offering in Pusat Bandar Damansara called the Damansara City 2 would benefit tremendously from the KL MRT going through/near its development. From what I heard, its development includes major condominiums, office towers, a boutique mall and a hotel as well and a massive amount of car parks. Assuming the timing of the development coincides with the completion of the MRT going through the area - I believe there would be some major upside in terms of capital appreciation for the area. With this, I believe the redevelopment of the Pusat Bandar Damansara government complexes might just go through; sometime last year, Malton was in the running for the redevelopment, together with Sime Darby and so on - in collaboration with its current owner, Johor Corp.
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I guess this post needs a little disclaimer. Note: This post represents the personal opinion of Eric Yong only (Yes, it is all my personal opinion/thoughts) - and does not represent a recommendation to buy the stocks of the abovementioned public listed companies. Thank you.
