At the beginning of 2020, the construction of the proposed Komtar-Bayan Lepas Light Rail Transit (LRT) project, part of Penang’s multi-billion ringgit Transport Master Plan (PTMP)
, is expected to kick-start.
At this moment, the project is expecting the consent by the Transport Ministry, which it is likely to be obtained soon.
A couple of weeks ago, a team from the Land Public Transport Agency
(APAD) visited Penang to analyze the proposed rail line alignment and the train station locations.
The Penang government will review the suggestions and comments from APAD to make necessary improvements to advise the Transport Ministry.
The cost of the Penang LRT Project is estimated at RM46 billion.
Penang LRT project will build an undersea tunnel to connect the island to the mainland, highways, LRT and monorail, and ample bus connectivity on both the island and the mainland.
The rail line for the LRT project will have an extension of 29.5 kilometres and 27 stations. The stations will go from Komtar to the Penang International Airport and the three future reclaimed islands in the south of Penang. This project will have an estimated cost of RM8 billion.
The whole project would be completed within six to eight years.
The main benefit of this project upon completion is the reduction of traffic congestion. The idea towards this is to move people, not vehicles as this approach will combine water, rail, and road connectivity throughout Penang island and the mainland.
Penang Property Development Outlook
Once the Penang LRT project is approved, the residents and visitors will be able to enjoy better public transportation and less traffic.
With these benefits, it is expected that Penang residential properties will increase in value as there will be better roads and connectivity.
You can also expect that housing developments in Penang to have similar prices on the island and the mainland. This is because infrastructure plays an important role in the property's value.
So it could be assumed that Penang properties new projects will have a higher prices with the LRT project.
Thus, before the LRT project is approved, it is the best time to invest in Penang properties new projects.
The answer is straightforward. Once the project is approved, prices will start rising.
Penang is a beautiful place for locals and foreigners with great housing developments. In 2018, the number of unsold housing was only 3,502 (compared to around 3902 unsold units in 2017).
Why are people buying more houses in Penang?
This is due to the fact that the housing developments in Penang offer strategic locations that are easily rented out, generating a long-term income to the property owner.
Where to Invest: Island or Mainland?
The mainland offers more affordable options but now with the LRT project, it would boost connectivity between both sides and the prices are expected to become similar in the future.
So now the question will be more about: where do you like to live?
We all know the Penang Island offers amazing shopping malls, amenities, restaurants, beautiful beaches, and other amazing hotspots, especially for tourists.
On the other hand, there is the mainland with affordable options and great residential properties, which have a big potential for price appreciation, once the LRT project kick-starts.
In the end, you should choose a housing development in Penang that you can afford and suits your lifestyle. It doesn’t matter if it is in the island or mainland. This is especially true as connectivity between both sides would soon increase.
Penang LRT project, together with a monorail, cable cars and water taxis, are part of the Penang Transport Master Plan to reduce traffic congestion by moving people instead of vehicles.
The LRT project will begin from Komtar to Penang International Airport, and ends at the proposed PSR development, which is the construction of three man-made islands.
The main goal of the project is to provide a faster route to the airport, residential, commercial and industrial areas.
This important project is expected to increase the development of new residential properties in Penang, and thanks to good connectivity between the island and the mainland, similar real estate prices are expected on both sides in the future.