Homes near electrical lines and substations may not always pose lower values

• Based on the transacted prices gathered via EdgeProp analysis, it appears that the presence of a power station or transmission lines within 50m of the houses does not impact property prices across the board.

Living next to a power station or electrical transmission lines is a reality for some Malaysians. As with anywhere in the world, proximity to such infrastructure raises numerous concerns.

One primary concern is the perceived low property value. This could stem from concerns about health risks posed by electromagnetic fields (EMFs) and the potential dangers of power cables snapping or towers collapsing into nearby houses. However, extensive research by the World Health Organization (WHO) has found no evidence of harm to human health from exposure to low-level electromagnetic fields.

Despite the public perception and fear of potential risks, based on our desktop research via EdgeProp EPIQ, houses within 500m of Tenaga Nasional Bhd PMU (TNB main substation) and electrical transmission lines in the Klang Valley continue to be purchased by homebuyers in recent years.

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

Methodology

Four areas were selected in the Klang Valley – Sri Hartamas, Segambut, Bandar Sri Damansara and Petaling Jaya – where all four have landed houses situated within 500m from a TNB substation and/or electrical transmission lines.

Within each area, three houses were identified: the first within a 50m radius from the infrastructure, the second located 100m to 300m away, and the third within a 301m to 500m range, to determine if the house within the 50m radius of the infrastructure was sold at the lowest transacted price.

To minimise the variables, transacted prices were compared using the price psf based on land size, all from the same latest year where data were available for each area. In addition, the same type of intermediate terrace houses were selected for comparisons for all the four areas. In each area, all the three houses share a similar category (mid-priced or luxury).

Map 1: In Segambut, property located nearest to the electrical transmission line had the lowest transacted price (psf).

In Segambut, with all transactions dated in 2023, the house within 50m from the infrastructure had the lowest transacted price of RM493 psf. Meanwhile, the houses within 100m to 300m radius and the 301m to 500m range fetched the second and third higher transacted prices of RM643.17 psf and RM658.77 psf respectively.

Map 2: In Petaling Jaya, property situated next to the substation showed the lowest transacted price (psf).

For Petaling Jaya, where all the transactions took place in 2022, the house next to the substation has the lowest transacted price of RM490.32 psf. As in Segambut, the transacted prices here rose in tandem with the distances from the electrical infrastructure. The house within 100m to 300m radius was sold at RM621.15 psf, while the house located in the 301m to 500m range showed the highest transacted price of RM808.73 psf.

However, a different pattern was observed for the next two areas.

Map 3: In Sri Hartamas, the lowest transaction price was not from the property closest to electrical transmission lines.

The transactions for all three houses in Sri Hartamas were recorded in 2022.

Unlike the patterns in Segambut and Petaling Jaya, the house within 50m radius from the electrical transmission lines in Sri Hartamas ranked the second highest in transacted price at RM1,080.83 psf. Meanwhile, the one located between 100m and 300m range had the lowest transacted price of RM1,019.67 psf. Nevertheless, the furthest house, sited 400m away here,  remained the top in terms of transacted price.

Notably though, unlike Segambut and Petaling Jaya, the transacted prices in Sri Hartamas were almost similar for the three houses, with the highest chalking only RM2.34 psf more than the second highest. This could be because, unlike the former areas, the latter only had the presence of transmission lines without a substation.   

Map 4: In Bandar Sri Damansara, the transacted price (psf) for the property next to the substation ranked the second highest.

In Bandar Sri Damansara, all transactions occurred in 2023.

Here, though there is also a substation along with transmission lines, the house located 30m away from the substation marked the second highest transacted price of RM499.06 psf. In contrast, the second furthest house within the 100m to 300m radius showed the lowest transacted price at RM437.64 psf for this area. However, similar to Sri Hartamas, the house within the 301m-500m remained the top gainer with a transacted price of RM543.60 psf.

Prices influenced by other factors

Interest for landed homes in areas like Sri Hartamas and Bandar Sri Damansara may have outweighed concerns about proximity to power stations and electrical transmission lines. Other factors such as the attractiveness of the neighbourhoods, easy access to amenities and public transportations, seamless connectivity with highways connecting to nearby cities in the Klang Valley, and the quality of nearby schools may have also contributed to a significant influence on the property prices in these two areas.

While some properties near such infrastructure may have experienced lower prices (such as the ones in Segambut and Petaling Jaya), our findings show the impact on property prices nearest to power stations or electrical transmission lines is not always negative.

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