A Study on Impact of Railway Stations on the Demand and Price of Surrounding Properties in Klang Valley

Goh, Felix Zhe Qian (2021) A Study on Impact of Railway Stations on the Demand and Price of Surrounding Properties in Klang Valley. Final Year Project (Bachelor), Tunku Abdul Rahman University College.

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Abstract

There are many impacts of railway stations be it positive or negative impact. These impacts will bring either direct or indirect effects to properties. Basically, the railway station can influence the demand and price of surrounding properties. However, the prices of the properties have been gradually increasing in the recent years with some even having double digit growth. The public have been complaining that prices of property are out of reach as purchasing power has been in decline, leading to a potential drop in demand of properties especially those in proximity of the railway station. Therefore, to tackle this problem, the research study will be carried out to identify the impact of newly introduced railway transit stations, to identify the demand of surrounding properties to the railway stations and also to identify the price of surrounding properties to the railway stations. The methodologies applied for this research begins with literature review to determine the impact of newly introduced railway transit stations and also statistical facts on the demand and price of surrounding properties to the railway station. This is then followed by the distribution of questionnaire forms to the public to obtain and collect data regarding all three objectives. The data collected will then be analysed using Cronbach’s Alpha analysis and descriptive analysis. The findings show that the top 3 impact of newly introduced railway transit station that achieved highest score are traffic congestions and parking problem in particular area, encourage more economic activities and solving the worsening traffic congestion. For the second objective, the top 3 most agreed statement regarding demand of properties surrounding railway stations are people would buy a property situated near the railway station to live in, properties in proximity to the railway station will be sold out quickly and people would rent a property situated near the railway station to live in. Lastly, in objective 3, the top 3 most agreed statement regarding the price of properties surrounding railway stations are that the current price of surrounding properties to the railway station is too high, surrounding properties to the railway station is overvalued and that it’s not worth buying surrounding properties to the railway station to live in.