The proposed high-speed rail (HSR) between Singapore and Kuala Lumpur offers valuable opportunities for property developers as property values near the rail line are expected to increase, according to JLL.
Set to be completed by 2020, the $15.6 billion project will reduce travel times from Singapore to Kuala Lumpur to just 90 minutes.
In Singapore, there are three possible locations for the train terminal – the city centre, Tuas West and Jurong East.
“Whichever option is chosen, there will be investment and development opportunities and values of properties at or near the chosen node will be enhanced,” said JLL National Director Ong Teck Hui in a blog post.
“Developers, investors, contractors and other real estate industry players have much to look forward to when the terminal location is decided.”
He expects the HSR to boost travel between the two countries, which could result in significant economic gains for both.
Aside from the economic benefits, the HSR is also expected to have a positive impact on the real estate sectors.
Infographic source: OPP Connect
Of the three potential locations in Singapore, Tuas West offers the
lowest cost in terms of construction as well as inconvenience to the
public.
Jurong East is an ideal location for the terminal as it
is already a commercial and transportation node and is just half an hour
to the city centre. However, the cost of running the rail would be
higher since it is 13 km away from the border.
Meanwhile, the city centre is the least desirable option.
Apart
from being costly, building a terminal there presents numerous
technical challenges, including the construction of an underground
tunnel through a densely built up physical environment.
Muneerah Bee, Senior Journalist at PropertyGuru, edited this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
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