KUALA LUMPUR: The soon-to-be-developed Tun Razak Exchange (TRX), along the southern end of Jalan Tun Razak here is expected to create a positive spillover impact on its surrounding areas of Bukit Bintang, Pudu and Kampung Pandan, say analysts familiar with the urban renewal project.
Formerly known as the Kuala Lumpur International Financial District, TRX will be a critical enabler and vital catalyst for the government’s Vision 2020 and Economic Transformation Programme initiatives, and is poised to attract more than RM3.5 billion in foreign direct investment.
Its construction was recently launched by Prime Minister Datuk Seri Najib Razak.
A senior analyst with RHB Research Institute Loong Kok Wen said the value of properties in the surrounding areas of TRX will gradually appreciate due to new infrastructure and transportation facilities.
She said the appreciation rate may be about five per cent annually and there will be speculative buying of properties near the areas as well.
“Although more substantial appreciation will depend on the Mass Rapid Transit stations, but I believe the appreciation of value for properties located in the vicinity will happen,” she said.
The 28.3ha development, off Jalan Tun Razak, is expected to bring in RM26 billion in gross development revenue.
Loong said the development will not only impact commercial properties but also residential properties.
She said developers will tend to build their projects in surrounding areas such as in Kampung Pandan, Pudu and Bukit Bintang as these areas are set to enjoy good response.
“The new properties surrounding the TRX are likely to enjoy good sales as buyers are confident of future demand for properties once the financial hub is completed,” she said.
AMMB Holdings Bhd Group managing director Ashok Ramamurthy said the project will have a spillover effect on real estate investment where many people will hope to have their offices or homes, within the proximity of TRX.
“Real estate developers will take this opportunity to plan their projects in these areas, to attract local and foreign buyers,” he said.
The Federation of Chinese Association of Malaysia’s (Hua Zong) deputy secretary-general Professor Dr Chin Yew Sin feels the properties in the surrounding areas of TRX will appreciate in a bigger way once people see the development of TRX.
Source: Business Times Dated: 21/08/2012
