KUALA LUMPUR: The Kuala Lumpur-Singapore High-Speed Rail (KL-SG HSR) project is expected to have a positive effect on the real estate market as a whole, according to RHB Research.
This is because there will be a greater demand for properties in Iskandar Malaysia, the Kuala Lumpur city centre, and the areas surrounding the HSR stations along the route, it said.
More than half of the track is expected to pass through the state of Johor, which is expected to have the longest HSR alignment. This is expected to improve sentiment in the real estate market there., the research firm said in a note.
"It is poised to be a significant driver in augmenting the movement of people heading south, not just within the population residing between Malaysia and Singapore but also among international travellers, thanks to the prospective connectivity between Kuala Lumpur International Airport (KLIA) and Changi Airport," it said.
Moreover, according to RHB Research, the introduction of rail transit systems is vital to improving the appeal of the Johor-Singapore special economic zone.
"With the Johor Bahru-Singapore Rapid Transit System (RTS) expected to be completed by the end of 2026, we believe the proposed Light Rail Transit (LRT) will play a vital role in establishing comprehensive inter-city railway connectivity and accommodating the growing passenger influx from Singapore.
"Considering Johor's current population of 4.01 million compared to Singapore's 5.5 million, the implementation of both the LRT and HSR projects could transform Southern Johor into a major city, potentially comparable to the Klang Valley in the long term," it added.