Are transit-oriented developments (TODs) foolproof investments?

Apr 16, 2025

The EdgeProp data research team has picked six TOD projects with completion years ranging from 2017 to 2022 to compare their transaction price movements, and the results may surprise you.

PETALING JAYA (April 16): In land-scarce and highly populated urban areas in the Klang Valley, transit-oriented developments (TODs) have become one of the solutions in mitigating commuting congestion and facilitating greater efficiency in mobility. Moreover, with the upcoming Circle Line MRT (Mass Rapid Transit) 3 to complete the Klang Valley Integrated Transit System slated for completion in less than 10 years, TODs are generally seen as future-proof investments.

Does this perception mirror reality? To find out, the EdgeProp data research team has picked six TOD projects with completion years ranging from 2017 to 2022 to compare their transaction price movements, and the results may surprise you.

TOD projects are (usually high-rise) residences located within a 400–500m walking distance of public transit systems, especially urban rail hubs. They tend to be nestled within mixed-use developments, which also offers commercial spaces, and substantial facilities and amenities. Some standalone high-rise projects that are not only near to public transit systems, but also provide pedestrian access to the stations, are also categorised as TODs.

Two TOD projects show continuous price growth

Based on our findings, only two projects appreciated consecutively in recent years.

Far East, a leasehold serviced apartment in Kuchai Lama, Kuala Lumpur, was completed in 2021 by Far East Kuchai Development Sdn Bhd. This high-rise development comprises two 36-storey buildings, offering 226 units with built-ups of 657–1,107 sq ft.

The Kuchai Lama MRT2 station is only 30m away from the buildings, making it convenient for residents who use public transportation for their daily commute. With a second consecutive year of appreciation, the median transacted price of this project reached RM761.5 psf in 2024, representing a 2.04% year-on-year (y-o-y) increase, and this translates to an absolute value of RM500,000.

Parkland Residence was completed in 2014. It is a mixed development by Parkland Group, located in the bustling area of Cheras, Selangor. The development comprises 714 units in two 18-storey buildings. It is easily accessible via a direct link bridge to the Batu 11 Cheras MRT station, which is only 110m away.

Except for a flat growth from 2022 to 2023, median transacted prices here have been continuously appreciating, reaching RM596.7 psf or an absolute value of RM417,500 in 2024 — a 4.6% y-o-y increase.

Fluctuating prices mark four TOD projects

Although most of the TOD projects in the Klang Valley have appreciated compared to their launch prices, some have not been able to sustain the upward climb.

One Cochrane is a freehold condominium completed in 2023 by Boustead Holdings Bhd. The development comprises two 37-storey towers, offering 448 units with built-up areas of 926 sq ft to 1,227 sq ft, and is located in the bustling area of Cheras, where IKEA Cheras is. It was launched at RM900 psf,

Even though the Cochrane MRT station is only 300m away, it may not be a unique catalyst for property values here. The median transacted price of One Cochrane depreciated to RM937.2 psf in its second year after completion, translating to an 11.7% y-o-y decrease, translating to an absolute value of RM1.15 million.

Aster Residence is a leasehold condominium developed by Amber Homes Sdn Bhd. It is situated 300m from the Taman Connaught MRT station and comprises three 38-storey buildings, offering 960 units with built-up areas ranging from 650 sq ft to 1,009 sq ft. At launch, it was priced from RM362,000, or RM557psf..

Completed in 2021, median transacted price here experienced a slight drop of 0.27% y-o-y in 2023 to RM660.2 psf. It then crept up to RM672.8 psf in 2024, a 1.91% y-o-y increase, resulting in an absolute value of RM688,000.

EkoCheras, completed in 2017 by Ekovest Bhd, is a freehold serviced apartment located on a 12-acre site along Jalan Cheras, 9km from the KL city centre. The project comprises three buildings offering 1,515 units, with the Taman Mutiara MRT station situated 300m from the residential area.

The median transacted price of this project dropped 1.67% y-o-y in 2022 and crept up to RM679 psf in 2023, a 1.19% y-o-y increase, translating to an absolute median value of RM538,427. Launched at RM700–RM750 psf, it was one of the few TOD projects that has dropped below its launch price.

KL Gateway Residences was completed in 2017 by Suez Capital Sdn Bhd. This project comprises two 38-storey buildings, offering 714 units with built-up sizes ranging from 500 sq ft to 1,101 sq ft. This serviced apartment is located within the 5.28-acre KL Gateway mixed-use development.

Located in Bangsar, a popular residential area in KL, and within 200m of the Universiti Light Rail Transit (LRT) station, the development attracts investors and homebuyers seeking a vibrant community.

After reaching a median transacted price of RM904 psf in 2019, the project values recorded a three-year consistent decline down to RM730.3 psf in 2022. Then it rebounded to RM856.5 psf in 2023, a 17.3% y-o-y increase. (No transaction was recorded in 2024.). However, compared to its launch price of RM600-RM900 psf (based on type), the project’s growth looked muted.

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Source: EdgeProp.my