By Kevin Goh, property consultant
In today’s urbanized world, access to efficient public transportation is more than just a convenience—it’s a key factor driving your real estate value. Homes located near public transit hubs, such as MRT, LRT, or Transit-Oriented Developments (TOD), consistently demonstrate higher price appreciation and stronger rental returns compared to properties in less-connected areas. This phenomenon is supported by a wealth of data or case studies from many cities.
The Residential Value of Proximity to Transit Hubs
A 2021 study by the Urban Land Institute found that residential properties within a 1-kilometer radius of MRT or LRT station in Singapore commanded an average price premium of 10-15% over properties farther away. This premium reflects the desirability of shorter commutes and better connectivity.
Similarly, in Taipei, properties near MRT lines have seen steady price growth over the past decade. A 2019 report by Colliers International revealed apartments located within 500 meters of MRT stations experienced a price appreciation of nearly 30% over five years, compared to an average citywide growth of 18%.
New York City provides another compelling example. A study by the Regional Plan Association showed properties within walking distance of subway stations saw price increase averaging 2-4% higher annually than those farther away.
In Kuala Lumpur, a study analysing the impact of the SBK MRT line in Greater Kuala Lumpur found that properties within 0.4 km of MRT stations appreciated significantly post-construction. Properties transacted after the MRT system became operational showed a 9.5% (approximately RM 99,874) premium over city's average home price. Properties transacted during the construction phase also experienced a 6% price premium.
Rental Returns: Strong and Consistent
Homes near transit hubs not only appreciate in value but also offer robust rental returns. Tenants often prioritize properties with easy access to public transport, particularly in cities with high commuting costs or traffic congestion.
In New York City, a study by Zillow found that apartments within a 10-minute walk of a subway station commanded rents 10-15% higher than those farther away. Similarly in Taipei, rental units near MRT stations have seen sustained demand from professionals and students like, keeping vacancy rates low and rents stable.
In Singapore, the trend is particularly pronounced in areas like Bishan, Buona Vista, and Tiong Bahru, where MRT connectivity is a major draw. According to research by PropNex Realty, properties in these locations achieve rental yields of up to 4%, outperforming the national average of 2.5-3%.
Across Kuala Lumpur, there was a reported 5.7% year-over-year increase in rental prices as of 2024. This aligns with broader demand fuelled by improved infrastructure which is expected to enhance connectivity and rental appeal in transit-linked areas. As MRT 3 project is underway and the likely further transformation of KL Sentral, the value will increase consistently.
Why Transit and Commercial Hub Proximity Matters
Several factors explain why:
- Convenience: Access to reliable transportation reduces commute times, enhancing quality of life for residents.
- Cost Savings: Living near public transit can lower transportation costs, making such properties attractive to cost-conscious buyers and renters.
- Sustainability: TODs align with the global push for sustainable living by reducing reliance on cars and promoting walkable communities.
- Demand Stability: Transit-oriented properties tend to retain their desirability, even during economic downturns, providing investment security.
Unlock Location Value - Transit-Oriented Development, KL Sentral and The Lantern Bangsar
KL Sentral, Malaysia’s largest integrated transport hub, links MRT, LRT, KTM, and KLIA Express services, creates unparalleled connectivity. It is also a hub for multi-national corporations such as Google, Facebook Microsoft and etc. The Lantern Bangsar is 1-stop away from KL Sentral, Mid Valley, KL Eco City and 2-stop away from Bangsar South also hosting global companies such as GE, Canon, Alibaba etc.
The Lantern Bangsar is only 350 meters walking distance along lifestyle eatery street Jalan Kemuja* to Bangsar LRT, Menera UOA Bangsar, Dataran Maybank and its insurance headquarter Menera Etiqa.
The trend of blooming commercial hubs is evident in the Bangsar - KL Sentral corridor where convenience, connectivity, and lifestyle appeal converge to create a thriving real estate market. Thus local professionals or expatriates create huge demands for rental and housing needs which close to their work place.
*https://theedgemalaysia.com/article/streetscapes-street-bangsar-draws-trendy-set
Conclusion: A Final Prime Opportunity in Bangsar with 180 Supply Units Only
Supply and demand is also an important criterion to consider in your investment decision. Imagine when you intend to rent it out or dispose it someday while hundreds of neighbour owners doing the same thing… what is likely to happen? Thus an own stay oriented properties with limited units is always a better choice.
Investing in properties near transit and commercial hubs is not just a smart financial decision —it’s a lifestyle upgrade. As Kuala Lumpur continues to develop its transit infrastructure, the value of properties near transit and commercial hubs will grow sustainably, reflecting the global trend of transit-driven real estate success. For anyone looking to capitalize on long-term growth and consistent returns, homes near public transportation remain a cornerstone of sound real estate investment.
