The city of Klang is the second most populated city in Malaysia with a population of up to 879,867 in 2018, falling slightly behind Kuala Lumpur. Parted by the Klang River into Klang North and Klang South, Klang holds enormous growth potential in economic terms. This translates into how rapid the property development in Klang is moving, where developers are racing to carry on with more projects here such as Kota Bayuemas, Glenmarie Cove, Bandar Bukit Raja township, and many more upcoming developments.
Tapping into the Klang market right around this time would be a great investment decision as Klang is in the plans to be an established residential district and leading commercial hub. The area might be old considering its rich cultural and historical background, but it holds huge potential with the right planning and development. Realising these, we have listed out the up-and-coming developments that are going to take place in Klang that further reshapes and enhances its market value and future prospects.
1. Light Rail Transit Line 3 (LRT3)
The Light Rail Transit Line 3 (LRT3) or also known as LRT Bandar Utama-Klang Line is a public development initiative that will provide rail connectivity from Bandar Utama all the way to Klang. The development is in line with the Greater Kuala Lumpur/Klang Valley Land Public Transport Masterplan that is endorsed by the federal government. Slated for completion by 2020, the infrastructure would have a total of 26 stations. The project is a join collaboration between Prasarana Malaysia Berhad, as the project owner, and MRCB George Kent as the project delivery partner.
The LRT3 would bring about great benefits by increasing travel efficiency, reducing traffic-induced stress, and reducing traffic congestion. It is optimistically expected to encourage the economic growth and productivity by mobilising more passengers, accounting up to 36,720 passengers daily. Hence, this development would in turn also positively affect the property value of areas that are strategically close by.
2. West Coast Expressway (WCE)
Another infrastructural addition to Klang is the West Coast Expressway (WCE). This development is an expressway spanning 233 km across the state of Selangor and Perak. Connecting the town of Banting in Selangor to Taiping in Perak with a total of 21 interchanges, the project is a privatised development maintained by West Coast Expressway Sdn Bhd (formerly known as Konsortium Lebuhraya Pantai Barat (KLPB) Sdn Bhd). The major portion of the project is led by Kumpulan Europlus Berhad and Road Builder Group, a subsidiary of IJM Corporation Bhd.
Construction has commenced since May 2015 with completion to be expected in another 5 years. The expressway is designed to have seamless connectivity with existing major highways such as PLUS, SKVE, NKVE, NNKSB, LATAR, and KESAS in order to maximise its coverage and gives users more options while travelling. So how does it benefit Klang, you may ask. Well, the expressway will be passing through Bandar Klang and Port Klang, this creates better accessibility for the people of Klang to travel all the way to Perak and vice versa.
3. East Coast Rail Link (ECRL)
Next in our list is the East Coast Rail Line (ECRL). The ECRL project is part of the RM144 billion worth of investments and partnership and identified as a high-impact project aimed to stimulate economic growth in the East Coast Economic Region - an area that covers more than 66,000 square km across the East Coast area of Peninsular Malaysia. Although, the project has stirred quite a public commotion, construction will resume until completion.
Considered as a mega infrastructure project, ECRL will be complementing existing expressways such as the East Coast Expressway (ECE) and KTMB East Coast Line. The project is estimated to take 7 years to be completed and will be covering a total distance of 688km linking Port Klang to Gombak, then reaching to Kuantan and ending at Kota Bahru. Therefore, the rail link will connect four states - Selangor, Pahang, Terengganu, and Kelantan. Additionally, this rail project with 28 stations would create a multitude of benefits including technology transfer to local partners and rail operation company and lowering the cost for passenger services between 30 to 50 percent as compared to travelling by car.
4. IKEA Regional Distribution Centre
Another piece of good news for Klang! IKEA, the world’s largest furniture retailer founded in Sweden will be setting up its new regional distribution and supply chain centre in Pulau Indah, Selangor. The distribution centre would be the world’s third-largest after IKEA Chicago and IKEA Dusseldorf, and will be serving all 12 IKEA stores in ASEAN. The centre is expected to take up to 25.6 hectare of land area.
The distribution hub located specifically at Pulau Indah Industrial Park is expected to bring a positive spillover effect and accelerate the socio-economic development of the area. The spillover effect would most likely contribute to the increase of investors’ interest in the area while at the same time, providing up to 500 new job opportunities. The distribution centre is expected to bring forth a total gross development value of close to RM1 billion, and expected to be completed by September 2019.
Conclusion:
Seeing as how Klang might be the new property hotspot with all these future developments in store, it is not a surprise that developers are showing more interest in Klang with many big names coming into the picture. Sime Darby, for example, with their Bandar Bukit Raja township, Mitraland’s high-rise mixed development, Gravit8 in Klang South, SP Setia with their integrated development, Trio by Setia in Bukit Tinggi, and WCT with multiple developments throughout Klang such as Aronia Apartments, Trifolis Apartments, Asteria Apartments, and Impiria Residensi. As such, this might be a great chance for one to begin investing in property in Klang and it takes a keen eye to recognise its potential.
Sounds like a good idea but not sure where to start? Well you can head to PropSocial and key in Klang into our search box for a start!
(Written by: Aisyah Shukor, 17th June 2018)
