Introduction

Probably one of the most exciting news or a game changer in sluggish construction and property sector is government approval on MRT3 or better known as Circle Line last month. A quick introduction, MRT3 or better known as Circle Line is expected to have 31 stations with prominent area such as Titiwangsa, Setapak, Setiawangsa, Ampang, Cheras, Kuchai, Old Klang Road, Lembah Pantai, Universiti, Bukit Kiara, Sri Hartamas, Mont Kiara and Dutamas under coverage. There are 2 provisional stations which is Salak Jaya (S25) and Bukit Kiara (S02).

The construction cost (excluding land acquisition cost) is expected around RM31billions with tender is expected to be called in May.2022. The Circle Line will be opened in segments with full operational targeted by 2030.

The 50.8km Circle Line will have circular alignment running along perimeter of Kuala Lumpur, but not into the city centre. This is a key information and we shall talk a bit more of this later.

The length split between 40km of elevated tracks and 11km of underground tunnels, with those tunnels concentrated primarily between Jalan Universiti to Bukit Kiara and Hartamas to Jalan Kuching.

In total there are 10 proposed interchange stations

With exception of KTM (Seremban – Batu Caves) and monorail KL line, All major public rail transport will have two interchange stations with Circle Line. It is important for Circle Line to have two interchange stations so it can serve as “bypass” from one line to another line at perimeter of Kuala Lumpur without going in the City Centre.

It is clear that Titiwangsa will be the next transport hub where 4 main lines are under one roof. Furthermore, there are ample of empty land readily for development to take advantage of the transport hub.

Via these 10 interchanges, Circle Line will shorten the trips from different lines. At the moment coming from Putra height (Kelana Jaya LRT Line) to Bandar Utama (MRT 1 Line) would require commuter to travel to city centre to interchange at Pasar Seni.

Post Circle Line completion, commuters can bypass the city centre and instead can interchange in University and Bukit Kiara Stations, saving the journey time.

Another example MRT 1 from Kajang would require to interchange at Pasar Seni (another alternative interchange in MRT 1’s TRX and Kelana Jaya LRT’s Ampang Park stations) before enroute to Setiawangsa direction. Similarly post Circle Line, commuter can bypass city centre and interchange at Taman Midah before enroute to Gombak via Kelana Jaya LRT Line’s Setiawangsa Station.

In summary, Circle Line is a “short cut” to multiple destinations.

Circle Line will significantly improve the connectivity within perimeter of city center which previously not covered by any public rails. With Circle Line, highly densed area such Mont Kiara, Sri Hartamas, Dutamas, Setapak, Ampang, Lembah Pantai which previously underserved now will have stations and connectivity to parallel rail lines (MRTs, LRTs). These rail lines are the gateways to major downtown areas such as KLCC, TRX, Bukit Bintang, Pudu etc.

One of the arguments from detractors is the underutilization of MRT 1, Sungai Buloh Kajang Line (SBK). Since the inception in 2017, the slow ridership growth has many calls it as failed project. The ridership peaking at 2019 with average ridership of 205K perday. Due to MCO in 2020, ridership has dropped significantly due to movement control of non-essential services and industries. Post recovery, the ridership has a slow recovery and is still well below the design capacity of half-a-million (500,000) passengers per day.

The second MRT line, Sungai Buloh-Putrajaya (SSP) line with design capacity of 533,000 passengers perday is expected to be fully operational by Jan 2023. Consists of 37 stations stretching from Sungai Buloh to Putrajaya, the 52.2km line is built at the cost of RM31bilions. Government plans to spend about the same money on MRT Circle Line.

It is important to remember that MRTs are designed to last for generations. It may be underutilized at early life however as population growth, the ridership will increase. To illustrate a point, completed in 1999, LRT Kelana Jaya carrying over 300k per day in 2019 and overcapacity during peak hours. Unlikely any further capacity expansion is possible due to constraint of the stations.

Given the huge bill, the functionality of Circle Line has attracted encouraging feedback as well as flaks from citizens. Some are arguing Circle Line is a waste of taxpayer money and no meaningful to increase the public transport ridership within Klang Valley. The money is better spent to build MRTs in other cities such as Johor Bahru and Penang island.

Let revisit some of MRT Circle Lines around the world.

Seoul’s Circle Line

Seoul Subway Line 2 connects many of the major downtown areas in Seoul and thus serves as an ideal mean of transportation throughout the city. Major stops along this circular line include Hongik Univ., City Hall, Euljiro1(il)-ga, and Dongdaemun History & Culture Park Stations north of Hangang River, as well as Gangnam, Jamsil, and Samseong Stations in the southern region. Starting from City Hall Station, travelers can explore popular districts such as Hongdae, Edae, Gangnam, and Jamsil or visit the numerous parks, museums and art galleries located near the subway stations.

Tokyo’s Circle Line

This is the only line that connects all of Tokyo’s most famous central stations such as Shibuya, Shinjuku, Ikebukuro, Ueno and Tokyo Station. The line is 34,5 km.

Shinjuku Station is maybe the world’s busiest train hub, with over 2 million passengers going in and out on a daily basis, and connecting with the Narita Express to Narita Airport, among other lines. Apart from a station, Shinjuku is also an important business and shopping center.

Shibuya Station is famous for the busiest intersection in the world – the Shibuya crossing. Apart from this, the area is one of the largest shopping centers as well as one of the most active business centers.

Tokyo Station (Tokyo-Eki) is the central station as well as a terminal station for all Shinkansen bullet trains. It is located in Marunouchi, which is one of Japan’s most prestigious business center.

Akihabara Station is one of the biggest central districts in Tokyo, famous for it numerous electronic shops in the famous “Electric city”.

All Shinkansen trains that go to the north of Japan stop at Ueno Station.

In nutshell, Yamanote line circle the government district, business, entertainment, commercial and residential areas. It is well known that properties within inner circle line is higher than out of circle line especially those within 10 minutes walking distance to stations.

Singapore’s Circle Line

The 30-station CCL is a circular rail line linking the North-South, East-West and North East Lines to the city. By intersecting existing train lines across key interchanges, and bypassing the busy City Hall and Raffles Place MRT stations, the CCL shortens trips between the north, east and west of Singapore, making travel more convenient. The line is currently 35.5 km long with 30 stations, connects major stations such as Dhoby Ghaut, Esplanade, Marina Bay, Holland Village.

London’s Circle Line

The 27km long 36 stations is a spiral-shaped London Underground line, running from Hammersmith in the west to Edgware Road and then looping around central London back to Edgware Road. Circle Line covers many important landmarks, commercial centres and tourist attractions such as Tower Hill (Famous Tower Bridge), Embankment (London’s Eyes, Charing Cross, Trafalgar Square), Westminster ( Big Ben and the Houses of Parliament), St. James’s Park (St. James’s Park and Buckingham Palace), Sloane Square (Knightsbridge, Kensington, Belgravia and Chelsea), Notting Hill Gate (ortobello Road Market), Paddington (express train to Heathrow Airport), Kings Cross (Similar to KL Sentral, regenerated 67 acres with 6 tube lines, 2 main train lines, HSR to Paris)

Comparison

The first we will notice that KL’s Circle Line is quite long, and covers 50.8km versus the Circle Line in other cities ranging 27 to 35km. This is first key because due to its length, KL Circle line the loop is larger.

In other cities due to the smaller loop, the Circle Lines cover and connect many major downtowns, tourist attractions and important landmarks.

Where else for KL’s Circle Line it seems that it is more interested to cover surburb area and highly populated area such as Setapak, Setiawangsa, Ampang, Cheras, Bandar Sri Permaisuri, Kuchai, Old Klang Road and Lembah Pantai. The notable commercial area is located in Sri Hartamas, Mont Kiara and Dutamas and future regeneration Titiwangsa (with 4 lines). As far as Propcafe is concern, KL’s Circle Line does not covers any important landmarks.

Summary

Throughout the world, Circle Lines usually are the busiest line as it covers main downtowns, tourist attractions and important landmark. However, for KL’s Circle Line it seems MRTCorp has adopted different approaches. As mentioned earlier, the Circle Line is to provide as much coverage possible and bring the passengers to major downtowns (KLCC, Bukit Bintang, Bangsar, TRX, Bandar Malaysia etc) via the parallel rail lines such as MRT 1, MRT 2 and Kelana Jaya lines.

What it means to property investors like us? For properties within the proposed areas, it is good welcome as traffic will be reduced with public rail transport as alternative travelling. However, need to bear with construction noise and inconveniences for next 8 years. Area like Mont Kiara, Dutamas and Setapak for example are most welcoming Circle Line as currently severely underserved.

For properties along MRT 1, 2 and Kelana Jaya lines, in Propcafe’s opinion these remain as prime rail lines and Circle Line seems to be more like a feeding line rather than main rail artery.

Given the current soft property market either auction, primary and secondary markets especially along operational MRT1 (SBK Line) and (SSP Line), it seems that buyers still can find bargains especially if they doing research.

Also, timing is equally important and at the moment, there is no reason for property investors to hunt Circle Line related development as Circle Line will only be fully operational in 8 years where most development will only take 4 -5 years for completion.

Obviously Circle Line is still very important as it will improve connectivity with its 10 interchanges. It is worth to note that most of the stations are located with ample of empty land for development. This will be not be possible if the Circle Line covers prime location and landmarks. The land will able to sustain the commercial and residential development for next 10-20 years. In fact some are earmarked by MRTCorp as future TODs such as Phileo Damansara (Bukit Kiara South station), Titiwangsa (Titiwangsa station) as example.