Are Transit-Oriented Developments in Klang Valley Still a Good Investment?
In land-scarce and densely populated areas like the Klang Valley, transit-oriented developments (TODs) have emerged as a go-to solution to alleviate traffic congestion and promote sustainable urban mobility. With the upcoming Circle Line MRT3 poised to complete the Klang Valley Integrated Transit System, TODs are often seen as future-proof investments — but do the numbers support this belief?
To separate perception from reality, we examined transaction price trends of six TOD projects completed between 2017 and 2022. The results? A mixed bag of steady climbers, flatliners, and surprising declines.
What is a TOD, and Why Does It Matter?
TODs are residential or mixed-use developments located within a 400–500m walking distance of a major public transit hub, typically MRT or LRT stations. These developments are often positioned within commercial hubs and feature an array of amenities that appeal to both homeowners and tenants.
The theory is simple: increased connectivity should drive up property demand and values. However, as the data shows, proximity alone doesn’t guarantee capital appreciation.
Continuous Price Growth: Far East & Parkland Residence
Among the six projects analysed, only two — Far East (Kuchai Lama) and Parkland Residence (Cheras) — demonstrated consistent price appreciation.
Far East (Kuchai Lama)
Completed in 2021, Far East is just 30m from the Kuchai Lama MRT2 station. Its units, sized between 657–1,107 sq ft, now command a median price of RM761.50 psf, reflecting a 2.04% y-o-y increase. At an absolute value of around RM500,000, this leasehold serviced apartment exemplifies a successful TOD with solid demand, accessibility, and affordability.
Parkland Residence (Cheras)
Completed in 2014 and connected via a link bridge to the Batu 11 Cheras MRT station, Parkland has defied market volatility. Its median transacted price reached RM596.70 psf in 2024, a 4.6% y-o-y gain, with consistent appreciation except for one flat year. Its strategic location and mixed-use concept have continued to attract both owner-occupiers and investors.
Mixed Performance: Four TODs with Price Fluctuations
Not all TODs enjoy upward price trajectories. Despite being well-located and within walking distance of public transit, the following four developments exhibited erratic price movements or underperformed compared to expectations.
One Cochrane (Cheras)
Completed in 2023 and located just 300m from Cochrane MRT, this freehold condominium was launched at RM900 psf. However, median prices dropped by 11.7% y-o-y to RM937.20 psf, with an average absolute value of RM1.15 million. Proximity to MRT alone couldn’t sustain price growth — possibly due to oversupply in the area or mismatch between pricing and target demographic.
Aster Residence (Taman Connaught)
Located 300m from Taman Connaught MRT and completed in 2021, Aster had a minor dip of 0.27% in 2023 but rebounded by 1.91% in 2024 to RM672.80 psf. Its affordability (launched from RM362,000) and density (960 units) may have moderated growth potential, although recovery signs are promising.
EkoCheras (Cheras)
This freehold TOD near Taman Mutiara MRT saw its value fall below launch prices of RM700–750 psf. After a 1.67% drop in 2022, it inched up by 1.19% to RM679 psf in 2023. Despite its strategic location and commercial integration, oversupply and competition might be dampening resale values.
KL Gateway Residences (Bangsar South)
With its direct LRT Universiti station access and high-density mixed-use layout, KL Gateway showed early promise. However, its prices dropped from RM904 psf in 2019 to RM730.30 in 2022, before rebounding to RM856.50 in 2023 — a notable 17.3% recovery. Still, its overall capital growth remains moderate when benchmarked against its RM600–900 psf launch price.
Lessons for Property Investors Eyeing TODs
While TODs generally benefit from strategic connectivity, other factors — such as developer branding, unit mix, pricing strategy, and surrounding supply — play a crucial role in price sustainability.
Here’s what savvy investors should keep in mind:
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Not all TODs are created equal. Distance from a station matters, but design, liveability, and density influence long-term value.
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Oversupply can weaken returns. Areas like Cheras are saturated with TODs, leading to price stagnation or dips.
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Capital appreciation isn’t guaranteed. Despite textbook TOD features, developments like One Cochrane and EkoCheras highlight that returns depend on more than location.
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Rentability remains a plus. TODs often attract tenants due to convenience, ensuring a consistent rental yield even if capital gains take time.
What This Means for Klang Valley’s Future TODs
With MRT3 set to reshape the Klang Valley’s urban landscape, developers are eyeing more TOD projects. The key for homebuyers and investors is to do due diligence: study historical pricing, understand demographic demand, and weigh project density against future supply.
In conclusion, TODs can still be solid investments — but only when supported by strategic planning, right pricing, and strong execution. The next decade will reveal whether upcoming TODs deliver not just accessibility, but also long-term property value growth.
