Not All Properties Near Electrical Lines and Substations Experience Decreased Values

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According to the data collected through analysis, it seems that having a power station or transmission lines within a 50-meter radius of the houses does not uniformly affect property prices.

KUALA LUMPUR, 26th Apr 2024 – Residing near a power station or electrical transmission lines is a common scenario for certain individuals in Malaysia. Just like in any other part of the globe, being close to such infrastructure gives rise to various apprehensions.

A significant worry revolves around the perceived depreciation of property worth. This apprehension might arise due to fears regarding health hazards related to electromagnetic fields (EMFs) and the possible risks associated with power cables breaking or towers collapsing onto adjacent residences. Nonetheless, comprehensive studies conducted by the World Health Organization (WHO) have concluded that there is no indication of adverse effects on human health resulting from exposure to low-level electromagnetic fields.

Despite public concerns and apprehensions regarding potential risks, our analysis using EdgeProp EPIQ indicates that houses located within a 500-meter radius of Tenaga Nasional Bhd PMU (TNB main substation) and electrical transmission lines in the Klang Valley have still been acquired by homebuyers in recent times.

This raises the question: does proximity to such infrastructure truly impact house prices?

Methodology

Four locations in the Klang Valley – Sri Hartamas, Segambut, Bandar Sri Damansara, and Petaling Jaya – were chosen, all of which have landed properties positioned within 500 meters of a TNB substation and/or electrical transmission lines.

In each area, three houses were pinpointed: the first situated within a 50-meter radius from the infrastructure, the second located 100 to 300 meters away, and the third falling within a 301 to 500-meter range. This was done to ascertain whether the property within the 50-meter radius of the infrastructure was sold at the lowest transacted price.

To reduce the number of factors affecting the comparison, we assessed transacted prices using price per square foot (psf) based on land size, all from the most recent year with available data for each location. Similarly, we selected identical types of intermediate terrace houses for comparison across all four areas. Furthermore, all three houses in each area belonged to the same category, whether mid-priced or luxury, ensuring consistency in the analysis.

In Segambut, all transactions in 2023 showed that the property within 50m from the infrastructure had the lowest transacted price at RM493 per square foot. Conversely, the properties within 100m to 300m and 301m to 500m radius fetched higher transacted prices of RM643.17 per square foot and RM658.77 per square foot, respectively.

In Petaling Jaya, where all transactions occurred in 2022, the property adjacent to the substation had the lowest transacted price at RM490.32 per square foot. Similar to Segambut, prices increased with distance from the electrical infrastructure. The property within a 100m to 300m radius was sold at RM621.15 per square foot, while the property within the 301m to 500m range had the highest transacted price at RM808.73 per square foot. However, a distinct trend was noticed in the remaining two areas.

All transactions for the three houses in Sri Hartamas were documented in 2022.

Contrary to the trends observed in Segambut and Petaling Jaya, the property within a 50m radius of the electrical transmission lines in Sri Hartamas ranked second highest in terms of transacted price, amounting to RM1,080.83 per square foot. In comparison, the property situated between the 100m and 300m range had the lowest transacted price at RM1,019.67 per square foot. However, the property located furthest away, at a distance of 400m, maintained the highest transacted price.

All transactions in Bandar Sri Damansara were recorded in 2023.

In this area, despite the presence of both a substation and transmission lines, the house situated 30m from the substation had the second-highest transacted price at RM499.06 per square foot. Conversely, the second-closest house within the 100m to 300m radius fetched the lowest transacted price at RM437.64 per square foot. However, akin to Sri Hartamas, the house located between 301m and 500m remained the top performer with a transacted price of RM543.60 per square foot.

Prices Impacted by Additional Variables

Interest in landed properties in locales like Sri Hartamas and Bandar Sri Damansara may have surpassed apprehensions regarding their proximity to power stations and electrical transmission lines. Various factors, including the appeal of the neighborhoods, convenient access to amenities and public transportation, excellent connectivity via highways linking nearby cities in the Klang Valley, and the quality of nearby educational institutions, likely played a substantial role in influencing property prices in these districts.

Although certain properties situated near such infrastructure may have witnessed decreased prices (like those in Segambut and Petaling Jaya), our research indicates that the effect on property prices closest to power stations or electrical transmission lines is not consistently adverse.

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