New rail link to narrow the gap between Singapore and Kuala Lumpur

The high speed rail link will cut travel time between Kuala Lumpur and Singapore down to 90 minutes

Plans have been unveiled for a new high speed rail link that will reduce travel time between Kuala Lumpur and Singapore to 90 minutes. The project is scheduled for completion in 2020, reported the Malay Mail.

The plans were revealed following a meeting between Malaysian Prime Minister Datuk Seri Najib Razak and his Singaporean counterpart, Lee Hsien Loong.

The rail link is regarded by the two governments as a strategic development that could improve connectivity between the two neighbours, as well as spurring new growth, prosperity and opportunities in both countries.

No cost estimate for the project was provided.

"Though the 2020 target for completion was rather ambitious, it is one which both countries are working towards," said Najib.

The rail link is expected to have a big impact on the property market in both countries, according to the Malay Mail.

"We believe a high-speed rail link is going to boost the property value not only in Singapore but also in Kuala Lumpur," said Yeah Kim Leng, chief economist at RAM Holdings Group.

"We expect more foreigners, especially in Singapore, to commute between Singapore and possibly Johor Baru and Kuala Lumpur, and buy more properties in Kuala Lumpur," he added.

Government authorities also revealed plans for the development of a joint-venture property project, Marina One. The development will be undertaken by M+S Pte Ltd and will be situated in Singapore's Marina South district. It is scheduled for completion in 2017.

Property developers in both countries stand to benefit from the proposed rail link, reported the Sun Daily.

The rail link has the potential to help narrow the price gap between properties in Malaysia and Singapore, according to a report by PublicInvest Research.

"While information is still light at this juncture, we believe the warmer relationship between the two governments now offers much comfort and we would probably see more progress on the project in the next 12 months," stated PublicInvest.

The rail link will be a re-rating catalyst for Malaysian properties, particularly those in Kuala Lumpur, according to RHB Research Institute Sdn Bhd.

"It is a new growth driver for the high-end properties in KL and Mont' Kiara. Coupled with the MRT network, not only the residential properties but also the commercial properties could receive a boost in the future," it said.

RBH believes Kuala Lumpur-based developers including UEM Land, SP Setia, IJM Land Bhd, Sunway Bhd, UOA Development Bhd, KLCC Property Holdings Bhd and Pavilion Real Estate Investment Trust are likely to yield the greatest benefits from the new rail link.

However, it may be some time until a rise in property prices is observed as a result of the new rail link, as many property values decline during the construction period, according to Yahoo Finance Singapore. Prices are more likely to climb once the link is fully operational.

 

Article source: http://www.thethailandlinks.com/2013/02/24/new-rail-link-to-narrow-the-gap-between-singapore-and-kuala-lumpur/