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UPSI Digital Repository (UDRep)
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| Abstract : Universiti Pendidikan Sultan Idris |
| It is generally believed that public transport investment such as urban rail transit systems can improve accessibility, particularly in larger and denser metropolitan areas. The improved accessibility provided by urban rail transit systems can drive up the value of surrounding land or property due to increased buyer demand. Based on this general belief, the study estimates the impact of the Kelana Jaya LRT line extension on residential property values in Subang Jaya, Selangor. Using Difference-in-Difference (DID) method with transaction-based data of 1,006 terraced properties, it is estimated that a typical terraced unit located within 0.8 km of the nearest LRT station and be sold during the construction phase of the project and after the system became operational would fetch a respective premium of approximately 4.7% and 5.3%, or RM31,490 and RM35,510 on average. It is also estimated that the overall impact on the price of terraced properties located within 0.8 km from the nearest LRT station in Subang Jaya, amounts to nearly RM11.6 million. An interesting accounting implication arising from this potential revenue is that it could provide a significant financial incentive to fully or partially fund urban rail transit projects in the Greater Kuala Lumpur area. 2023 by MIP. |
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