Cyberjaya (as an investment location) is always a controversial topic among property investors. One can easily search from property forums to observe two distinct views on investing properties (especially residential) in this location. It often ended up with “You are either love it or hate it”. You can’t blame the pessimists if you understand the previous history of Cyberjaya, oppositely, the optimists are exciting about the potential value of Cyberjaya in near future because of the current dynamic and future prospect in this Eco-System based township. This blog will try to explain its history, review recent activities and project the future state of Cyberjaya. And hopefully, this blog can give you everything you want to know about Cyberjaya properties.
What is the baggage of Cyberjaya?
It’s History! Cyberjaya is the pet project of former Prime Minister Tun Dr. M. It was a strategic alliance project between government, local and foreign private institution which proposed by famous global strategic consultancy firm McKinsey. It was a great vision from government to build an ICT multimedia super corridor like U.S. Sillicon Valley. However, the outcome proved that it was just a bit too over ambitious given the execution capability and resources in Malaysia. The project was also seems to be too big for the assigned master developer. Because of all these, the focus in few early phases was all on the ICT hub development with only minimum planning on the commercial and residential property development. This set the first flaw of Cyberjaya project.
Even with the mistake of the initial planning, everything went well in term of infrastructure and IT feasibility development with the help of government. It had attracted few hundreds MNCs to start its IT/ICT related operation in Cyberjaya. However, the cracks came in during Asian Crisis in 1997 when government and its partners suffered substantially. It led to the halt of this development which forced the change of Cyberjaya development’s structure and strategies especially on the project’s master developer and land ownership. Government technically bailed out this project and enforced different initiatives and ownership exercise on master developer and land owners. Unfortunately, the development in Cyberjaya was still at snail pace after the restructuring. Many residential investors (landed property) failed to enjoy the capital appreciation over 10-years period since 1997. For those who invested in condo or apartment, the pain was less as the investors still make decent positive cash-flow which contributed by the student rental market. The failure of proper planning and to build whole township by a single master developer (which caused the slow delivery) had destroyed investors’ confident in Cyberjaya. Today, many Today, many still confused on the direction and masterplan of Cyberjaya.
The changed of execution plan and consequences of crisis had provided a lifeline to Cyberjaya. The master developer/land owner started to sell and opened up the lands for other developers to join force and develop Cyberjaya. It allowed developers to build different type of properties, at the same time, stimulate new ideas and living concepts in Cyberjaya instead of restricted just ICT hub concept. This certainly helped and benefited Cyberjaya township as a whole as it also means Cyberjaya will deliver different types of development in a much faster pace compares to previous plan. The pace was intensified in last few years as many big or small developers stepped in this golden miles especially due to the limited lands available and surged of land prices in Klang Valley. The readied infrastructure and potential own-stayers (30k+ population of knowledge workers) in Cyberjaya have also attracted the interest of developers. Out of sudden, Cyberjaya land (yes previously deemed to be too expensive) becomes reasonable and buildable from developer’s point of view but it doesn’t mean it is cheap. The land sold to developers were still at the high side, therefore, it is not surprise that the launches in recent years were skewed to high-end or higher dense development in order to generate high GDV.
The problem starts here, investors feel that Cyberjaya prices are way too high given the insufficient amenities. The private developers have no choice but price it relatively high and offer higher end products due to land and material costs. However, it has all infrastructures readied together with a new masterplan being re-designed by Setia Haruman (which can be seen in Setia Haruman Office). If one goes through the masterplan, it is in fact a much better plan than many other townships in Klang Valley. Now, it is just a matter of execution. That’s what the vested or hopeful Cyberjaya investors are betting on. Then, many investors claimed that the township is not vibrant enough (yes, Ghost Town has been used by some forumers) since only limited commercial elements available at the moment. However, these group of investors need to realize that more mixed developments with commercials and residential enclaves are on the way. Almost all key developers are started to offer different products to fill the previous gap of this township particularly by building more lifestyle affordable properties to lure the existing 34k IT related knowledge workers to stay in Cyberjaya. At the same time, it is offering high-end landed residential for management level’s executives and non-Cyberjaya bound families to move in this green and unpolluted city. We will discuss it in great details later.
Summary of the past issues:
1. Masterplan execution too focused on ICT hub
2. No proper residential enclave for ICT workers
3. Only limited guarded high-end enclaves of landed residential for management executives/ expatriates i.e. lacking of full gng with clubhouse facilities.
4. The above items caused limited night population and biz opportunities
5. Less focus on the abovemetioned (due to limited capacity of master developer) made the development of residential properties in Cyberjaya to be more like student driven than family living. It is doesn’t help to keep the workers to stay in Cyberjaya.
6. Spiral effect happened. No big mall(s) or lifestyle entertainment/eatery will be available until night time populations are sufficient to sustain the biz there. Chicken first or egg first story comes into the picture.
Cyberjaya – Key Facts
Cyberjaya has a total land of 7,000 acres. It has developed 3,000 acres and left with another 1,000 acres of land to develop. The rest of the 3,000 acres are allocated for utilities. Master developer will be investing RM20 billions over next 5years (2012-2017) in Cyberjaya to bring this township to another level. RM2 billions have been spent so far. Many claimed that master land-owner was selling the land way too expensive which induced higher price of Cyberjaya properties but one should also know that the master developers and land-owner are to re-invest substantial amount into Cyberjaya to enhance the future infrastructure. The re-investment amount will be discussed later.
The current total population of Cyberjaya is about 52,000 (18k –Student; 34k Knowledge Workers) but it is estimated that night population is only about 15,000.
How about future population? The student population is expected to increase as three more universities/colleges (International University of Computing, Royal Islamic University of Malaysia, and Segi College) are coming to open their campuses in next 3 years. On the bright side, Cyberjaya already has an advantage to get population compares to new township as the MNCs already houses 30k+ over knowledge workers here, the effort to lure the new blood to stay here is lesser compare to other new township. Many still very skeptical on this but I have to say that no one would like to travel far away and stuck in the jam especially we talking about daily routine here. I am pretty sure if the township lively, many of them will choose to call it as their home. The catalyst will be the success of the execution of commercial developments in Cyberjaya. The estimation from developers show that by 2016 and 2020, the population will reach 100,000 and 210,000 respectively.
Cyberjaya City Wide Surveillance System
Cyberjaya is the first city in Malaysia to have integrated citywide closed circuit television camera (CCTV) that is links to the Malaysia Emergency Response Service (MERS) 999 system. The Command Centre is stationed at Cyberjaya police station. (Quoted from Cyberview website). It was completed in May 2009 with 30 CCTV camera installed throughout Cyberjaya Flagship zone.
Lake Garden and Community Club
Cyberjaya Lake Garden community club was completed in 2006 at the 15.6 acres site. Amongst the facilities available to the community are:
Function Hall; VIP Holding Room; Coffee House; Golf Driving Range; Squash Court; Futsal Courts; Basketball Courts; Badminton Courts; Swimming Pool; Gymnasium; Playground; Tennis Courts; Pool Room; Paintball; Beach Volleyball Court; Go kart circuit
The Putrajaya lake which is near to the Cyberjaya border offers the family natural outdoor activities and the scenic view there is absolutely fantastic. Most Importantly, Cyberjaya is a clean and eco-system based city that has no industry pollution at all! Those sick of old and dirty township that comes with pollution will be delighted to move to Cyberjaya. The young IT entreprenuers can also start their office here (plenty of soho units available in future) as it comes with great IT infrastructure and transport (link to KL from its KLIA ERL station at Cyberjaya station). Again to attract more night population, the above requirements must be met and further improved.
Cyberjaya has one of the most complete transportation systems in entire Malaysia. It is extremely convenient for frequent traveller as it is 20 mins to reach KLIA or LCCT and KL City Center. The illustration below covers all the transportation systems available for Cyberian
By car – Highway
Cyberjaya has a direct link to major townships in Klang Valley via
– MEX highway (Maju Expressway) to KL City – Kg. Pandan less than 20 mins – off-peak. Well, peak period you
have to try yourself as it is irregular. The toll rate is about RM8 returns.
– ELITE Highway (North South Express Centre Link)
– NKVE (North Klang Valley Expressway)
– SKVE (South Klang Valley Expressway)
– NSE (North South Expressway)
– DPE (Damansara-Puchong Expressway/LDP)
Based on the linkages above, what else can you complain about?
Bus/shuttle service called Dedicated Transportation System (DTS) is available to ferry knowledge workers from the Klang Valley, Seremban, Klang, Gombak and Kepong to Cyberjaya. The bus movement/location and issues are tracked by GPS and GPRS which the schedule will be updated in the website. The DTS serves 7 routes 24/7 and it charges RM213 per customer per month. See the route coverage and the example of the scheduling below. http://www.cyberjaya.name/dts.htm#
Eg of Schudule
KLIA Express Rail Link (ERL) – This is the fastest way to reach Kuala Lumpur CBD (KL Sentral) from KLIA. This premium high speed train service (160km/h, only 3 stops) has a stop in Cyberjaya which operates with 15 to 20mins interval. If you are current LRT/KTM commuters, this train service will be a heaven to you (in term of space, speed, efficient etc). The monthly pass to KL Sentral is only at RM285. There is also Feeder Bus to bring passengers from KLIA Transit Cyberjaya station to various points of Cyberjaya. The routine daily of KL workers can be a joy after moving to Cyberjaya.
Future Enhancement of Transportation System
How about future transportation? There are many to look forward.
1. MRT – Under the proposal of 3rd MRT line, Putrajaya line is included in the plan which see 58km line from Selayang to Putrajaya. It links Bandar Baru Selayang to Putrajaya which ends ironically at Cyberjaya/Putrajaya ERL station.
2. MEX highway will be linked up with Sri Kembangan in near future. Opps. More traffic is expected on the MEX highway.
3. New Transport Terminal. This terminal will be built at the southern part of Cyberjaya which will be connected to future Putrajaya Monorail extension. (see below)
4. The alternative route to Puchong (instead of paying toll to Puchong) is already accessible besides Setia EcoGlades development (but it takes one’s courage to go through the existing mudding road). See below
Also Chinese school is within a short drive via this new toll free access to Puchong.
See Pic below which can bring you to the non-halal foods restaurant easily (for those can’t live without it).
By the way, recently I visited a non-halal restaurant at Cyberjaya (just to confirm it is available in Cyberjaya since many still think Cyberjaya is a halal restricted place), the photo below speaks it all. Another non-halal restaurant is on the way too according to my Cyberjaya folks.
New non-halal restaurant
Lazy to read? You may watch the quick summary of Cyberjaya video though it doesn’t cover all development.
Highrise Property Development
Recent trend shows Cyberjaya’s developers are crazily launching all high-rise developments to capture the current BBB (buy buy buy) sentiment particularly the pigeon hole size developments as it is more affordable. The investors need to aware on the supply issues in this segment as many still do not pay attention on the expected supplies in next 3 to 5 years.
Once you read the information below, you will understand why I want to stress that the rental yield in Cyberjaya will come down in near future. It is due to the competition and spoilt of choices for tenants since most of these developments are concentrated on the pigeon size studio/1 bedder or SOHO type.
Here is how I interpret it (but it could be subjective, so take it easy), we know that the current 3600+ units of condominiums are serving 18,000+ students and 34,000+ workers in Cyberjaya. Bear in mind that not all of them are staying in Cyberjaya. We need to cautiously analyse the situation and let’s assume that the current 12k students out of 18k students and 3k workers out of 35k workers are currently staying at the existing 3.6k residential units, mainly apartment or condo. It translates to about 4 persons per unit which look reasonable (given that limited number of studios available at the moment). It means, the future 15k+ units (which majority are small units) with the assumption of average 3 persons to share a unit require additional 45k population (students plus workers) on top of existing population to absorb this new supply. Well, with additional 3 universities/ colleges that planned to open their door in Cyberjaya, you may get around 15 to 20k students in next 3 to 5years but how about the another 25k tenants? Can the existing and future workers fill in this number? It is a big question mark. Not saying it is impossible, but to get more than half of existing workers to stay at Cyberjaya and to get non-Cyberjaya bound population to shift in here in such a short time is very challenging. For the landed properties, one can be more optimistics as we can understand that many families may want to have a healthy living environment, and bigger/nicer house to stay (given that the price of Klang Valley landed properties with reasonable already shoot over the roof!). But to move into high-rise from non-Cyberjaya area, Cyberjaya need to offer much better lifestyle than currently offering. Again, commercial development is the key to materialize it.
The list of highrise Offering in next 3 to 5 years (to be updated in the blog frequently, so do revisit us more!)
As at today (updated on 19 June 2013): Completed (3,988 units); Work In Progress & Future (estimated 20,844 units).
We are happy to have reader to save the information here for own use or post it to another forum. However, we would be very grateful if the reader could put the backlink there (i.e. quoting our www.propcafe.net). With this, we will be more motivated to bring more good info to reader in future.
Oversupply of HighRise Property?
No matter how you look at it, oversupply is likely to happen in Cyberjaya’s condominium/apartment segment. The above analysis shows more than 15k units to be available in next couple of years. Of course, if you believe that half of the 35k professional working here will choose to stay in Cyberjaya, then the supply issue will be manageable. However, I would expect only about additional 20 to 30% of the young professional (8k to 9k) may choose to stay in Cyberjaya over next 3 to 5 years (means Cyberjaya requires about another 10,000 young professional to move over Cyberjaya according to analysis mentioned above to fill the rest of the supply. I think it is a very challenging number to achieve unless those young investors have no choice (or happy with Cyberjaya environment in 3 to 5 years time) and move into their own purchased units. Personal view is “High Risk” to invest in Cyberjaya highrise especially those pigeon holes size apartment. It is too competitive and rental yield will not be as good as now (significant supplies will kill the yield!). So, if you are the die-hard studio king, then picks the unit and development wisely to mitigate this risk.
Landed Property Development
Currently, Cyberjaya landed property is skewed to high-end property and there are around 500 units existing landed properties in Cyberjaya including the recently completed Summer Glades and Garden Residence (early phase). Although the number is acceptable, there are estimated of 2,000 units to be available over next 3 to 5 years based on the eights properties that are launched recently or going to launch soon, mainly contributed by Garden Residence, Setia EcoGlades and Symphony Hills project. All of these projects come with full G&G and facilities.
Note: Updated on 19 June 2013 – Estimated around 2576 units
We are happy to have reader to save the information here for own use or post it to another forum. However, we would be very grateful if the reader could put the backlink there (i.e. quoting our www.propcafe.net address). With this, we will be more motivated to bring more good info to reader in future.
Cyberjaya’s land is expensive, I don’t foresee cheap or mid-cost landed properties (<800k) to be available especially G&G development. It means more high-end enclaves to be created in Cyberjaya. Is it good or bad? No one can answer it. As the price is high, one can notice that the developers are putting a lot of effort to sell it by offering more lifestyle concept living. Almost all landed property projects come with nice G&G, landscape and green concept to lure more own-stayers to choose Cyberjaya as their homes. Many Cyberjaya pessimist complained to me that why there are so many nice developments in Cyberjaya but not in the other part of Klang Valley! My answer to them is, move to Cyberjaya if you treasure more on modern, green, space, clean, and peace environment. Of course, you need to forgo many current lifestyle especially eateries you have in old township. As the non-forbes list rakyat, we can’t have the best of both worlds.
Again, let’s talk about the supply of landed property. If one looks at the current demography of night population, it is clear that residential properties are oversupplied. Before you go down to understand the reason of why the night population is low, we can study the current situation of landed property residential profile in Cyberjaya. Majority of the landed projects are Bungalow and SMD except the recently completed Summer Glades and Garden Residence. The sign of moving in these developments is slow as the amenities in Cyberjaya are all in progress. Therefore, timing is absolute important to buy a property in Cyberjaya especially if it meant to target for non-Cyberjaya bound professional/Bizman.
Can this situation change? Again, it depends on the execution of the commercial elements of Cyberjaya (oh, how many times I have been saying this). From the existing 34k workers, let’s assume that management level executives consist of only 10% of this 34k population. Out of this 3.4k management executives, I am conservatively taking 30% of this number as the executives who intend to stay in Cyberjaya or capable to buy the landed property here (considering household income –Dual Income). It derives about 1,000 professionals. So, again, it needs another 1500 families to fill the remaining 1,500+ units. This has to be further contributed by non-Cyberjaya related owner to move into Cyberjaya. Tough! Desa Parkcity takes 5 to 7 years to achieve this number and I seriously advise those investors to be cautious on investing property in Cyberjaya especially those who has no holding power or no intention to move into Cyberjaya under worst case scenario. Is that mean Cyberjaya landed property definitely No No for investment? Not necessary, investors can still buy the landed properties (not many landed property launches anyway in KV) but one should know how to pick the right development and units. In order to differentiate yourself from the rest, your development should have more unique selling points, e.g. Concept, Design, Layout, View, Size, Pricing etc. With right target subsales buyer group in mind, exit plan must be properly thought through and lastly holding power is the key for the city like Cyberjaya.
Lovers can continue to buy good value properties in Cyberjaya and hates continue to sit on the fence to watch the situation in Cyberjaya. One thing which no one can deny is the change is definitely will happen but how long it will take is the million dollar question. Would Cyberjaya population grow exponentially? First, we need to understand the reason of people not choosing Cyberjaya at the moment.
Why no night time population?
I talked to few Cyberjaya (and ex) executives to verify the reasons. Simple. “No Life”. But the
meaning of life is different from individual and the priority of individual is different too.
Without ranking it, these are the reasons:
– Lack of foods or variety of eateries. Need more non halal foods
– Foods are expensive
– No lifestyle i.e. No shopping mall to hang around with stylish cafe/cinema/drinking place etc.
– Not vibrant enough. Hardly see human traffic. So feel like ghost town
– No markets – Pasar malam or pagi to get daily basis needs
– Need more type of school e.g. Srjkc or Srjkt like other townships
– Current residential offering are mainly student type accommodation. Limited choice for more family type residential property. The current non-student type residential properties are limited and way too expensive for the knowledge workers in Cyberjaya.
Affordable Homes to help night time population?
One positive move from government is to set up the affordable homes zone in Cyberjaya. 2,500 homes are going to deliver under the master developer’s initiative. See the location and detail below. This will be a boost to night time population.
We talk can about the night population till the cows come home (and still not having any conclusion). Many of the arguments are always go back to chicken and egg situation. There is no doubt that the completion of mixed commercial development in Cyberjaya will help to build up the night population in next few years. While many workers and students there are very excited on these developments (see the list below), i feel that it could be too many of them in such a short period. Funny huh, from zero commercial to grow at this speed. Before Cyberjaya becomes the township with 100,000 population, the risks are there as some could become fail commercials without large enough human traffic. That’s the continuation of debat. Zero – No Good, Many – No Good. Cyberjaya fans will scream to pessimist – What do you want? No matter what, the future commercial developments will reduce the concerns on foods and lifestyle in Cyberjaya significant.
So, it left with the schools and pasar pagi/malam issues. The latter shouldn’t be an issue as higher population will make markets available. The school issue is the one that even developer can’t do much. The developer Mah Sing has already earmarked a plot of land for srjkc but it all depends on government to say yes. Last heard was the proposal is to move dengkil srjkc to Cyberjaya instead and we shall see whether it will be materialised. Those intend to send kids to private school has no issue as there are already available in Cyberjaya (ELC, Kirby, Nexus) and many other choices within short driving distance (Tanarata, AliceSmith, etc). For time being, if SRJK(c) is compulsory for you, your choice will be limited to only Dengkil or Puchong school. (Latest Update – 3/4/13 – Ground Breaking Ceremony was conduct for the relocation of Union SRJK(C) from Perak. This chinese primary will be at the site of LakeFront Residence @ Cyberjaya and expected to open its doer in the end of 2014 or early 2015).
Landed property available now or launched recently are mainly higher-end G&G type property with the price tag above a million ringgit. Although developers mentioned there were many management level buyers from MNCs in recent launches, Cyberjaya still need middle class families to balance the demographic. I don’t expect RM600k to RM700k landed properties in Cyberjaya to be available so this group of buyers are currently only being offered high-rise choices, e.g. the family type of condo like Mirage by the Lake or Verdi. I believe this group of ownstayers is still prefer landed properties. If there is any landed property below 700k price tag in Cyberjaya, I can guarantee you that it will be sold out within a day. I see there is big gap to fill here (though I know it is unlikely to happen due to land cost in Cyberjaya). Developer please listens.
How long would it takes to change in Cyberjaya?
Those who are vested or interested to invest or ownstay surely want to know the answer because like what I said earlier, timing is absolutely important to invest in Cyberjaya. If you missed the timing, investors may not be able to come back again as they may not be able to afford anymore (be it ownstay or investment) after the township starts to take shape. The best example is Desa Parkcity.
Some think that 3yrs are sufficient but i don’t think so. The commercial (launched recently) needs time to establish and to attract people to stay in cyberjaya also needs time. The good thing is, it doesn’t need tremendous effort like Setia Alam or other totally new township to attract new blood/migrants to this place because the infrastructures are ready and it already has a big working population here. You just need to lure them stay here. Then the rest potential residents will come naturally from nearby townships (kajang, puchong, putrajaya, sri kembangan etc). My personal view is, it needs 5 yrs minimum from now to see a lively Cyberjaya and 7yrs to be a vibrant township(2020). Of course, one should not expect it to be as vibrant as TTDI, SS2, Kota Damansara, or Puchong. What i am saying here is it may become a self sustainable matured township which has everything that the residents need.
As what we have discussed, many choose to stay away from Cyberjaya nowadays because it deemed to be a boring township with only MNC buildings everywhere. There is no doubt that Cyberjaya is lacking a proper commercial mall at the moment but how about in future? There many developments are in progress which will change Cyberjaya commercial landscape and fullfll the needs of Cyberian – Eateries and dining choices, cinema, entertainment, lifestyle river promenade etc.
Below is the list of commercials (most of it are mixed development with offices, hotel etc) that recently launched or going to launch in near future. Again, I feel that it will be oversupplied! (From zero to too many!).
Other than these shopping mall, there are many development comes with retails and commercial components:
What other commercial components are coming in Cyberjaya?
– According to my personal source, premium outlet will be established in one of the commercials above to bring in tourists crowds. The location of Cyberjaya looks ideal as it is half way between KL city centre and airport.
– Hotel. Tune and Ascott (D’Pulze), Pangaea, Skypark, Star Central Phase 4, Glomac Cyberjaya, Vita Phase 3, Project by Eminent Ace
– Cyberjaya City CentralIt is located opposite the site of The Place development which is not too far from LKW University. Cyberjaya City Centre is aspired to be an iconic development of international standard in Cyberjaya. The 10 year masterplan is yet to be finalized.
– There are many commercial shoplots and offices developments are on-going (and more to come) in Cyberjaya.
– IOI City Mall – Although it is not in Cyberjaya, it is only few km away (toll free) to reach. I am not going to put too much non-Cyberjaya information here, one thing I need to highlight is, the retails area are bigger than Mid-Valley! http://www.ioicitymall.com.my/
– Putrajaya Lakeside Promenade. Again, not located in Cyberjaya but it is another commercial area that can attract more potential Cyberjaya residents. It also complements the existing Alamanda Shopping Mall (in my mind already has a very good mixed of variety for Putrajaya and Cyberjaya shoppers).
From the momentum shown in Cyberjaya, I strongly believe the landscape of Cyberjaya will be totally different in 3 to 5 years time after the completion of commercial developments. To Buy or Not To Buy is an individual choice. This blog is trying to give more depth about the information of Cyberjaya development so that investors or ownstayers can make an informed decision. The next blog about Cyberjaya will be the chinese version and also SP Setia’s Setia EcoGlades Project, stay tuned!
To see the potential change of Cyberjaya, I list down all the current and future development photo/video for you to refer and enjoy.
Note: Majority of the videos and photos are obtained from the developers’ website. So, credit must go to the original source providers. I am only compiling the information here to ease the investors/ home buyers hassle so that everyone can use this blog as a one stop shop to go through all the development in Cyberjaya.
Cyberjaya New Development
(updated as at March 2013, it will be updated frequent, do visit us more frequently!):
Mirage By the Lake
V’ Point Residence
Lavida Soho@ Vita
CBD Perdana 3 -Soho
Cyberjaya City Centre
Concept – Heard it was modified.
Mirage by the Lake
We are happy to have reader to save the information here for own use or post it to another forum. However, we would be very grateful if the reader could put the backlink there (i.e. quoting our www.propcafe.net address). With this, we will be more motivated to bring more good info to reader in future.