COVER STORY
2
MALAYSIA’S FIRST
Thailand
INTELLIGENT CITY
Cyberjaya is home to multinational companies, academic institutions and expatriates
Penang
Kota Kinabalu Kuala Lumpur
by Hazrul Izwan & Michael A. David
Cyberjaya
Cyberjaya, a fully integrated city aspires to be known as the “Silicon Valley” of Malaysia. Its development to serves affirm Malaysia’s status as a country of “Knowledge-Based Economy”. It is conceptualized to provide a comprehensive infrastructure for both enterprise and office development and act as the catalyst for the growth of government Multimedia Super Corridor (MSC) ICT enterprises and the multimedia industries in Malaysia. Cyberjaya was launched in 1999 by the fourth Prime Minister Tun Dr Mahathir Mohamad as the regional and glocal ICT hub to rival the best in the world. Cyberjaya has an internationalconnectivity advantage where it is located near to Kuala Lumpur international Airport and less than 30 minutes travelling time to Kuala Lumpur City Centre via Maju Expressway (MEX). Figure 1: Number and Value of Property Transactions in Selangor, 2006-2011 Transaction (Units)
Value (RM’b)
120
50
100
40
80
30
60 20 40 10
Legend:
2011
2010
2009
2008
2007
0
2006
20
0
Number of transactions (LHS) Value of transactions (RHS)
Source: NAPIC
Brunei
Johor Bahru Singapore
Kuching
Cyberjaya will become an ideal city to house 180,000 residents, 70,000 employees and institutional establishments providing for 30,000 students in the next 10 to 15 years With a total development area of 7,000 acres, the Cyberjaya flagship is zoned for residential areas (29.3%), low-density urban enterprise (11.6%), commercial zone (4.5%) and the remaining balance is reserved for mixed developments, institutional developments and green areas. This self-contained city is well-supported by world-class IT infrastructure as well as modern amenities and facilities. With the current population standing at 45,000, Cyberjaya will eventually grow to become an ideal city to house 180,000 residents, 70,000 employees and institutional establishments providing for 30,000 students in the next 10 to 15 years.
Kalimantan, Indonesia
institutional buildings. The IT office buildings nearby include those occupied by multinational companies such as Shell, Ericsson, BMW and DHL, Hong Kong & Shanghai Bank Corporation (HSBC), Hewlett-Packard (HP) and Dell. The institutional buildings include the Multimedia University (MMU) and Lim Kok Wing University. Up until recently, Cyberjaya has mainly been an IT and institutional area. On the property market front, the State of Selangor Darul Ehsan continued to reflect an active market. According to the National Property Information Centre (NAPIC), 8,000 new residential units in 2011 were built in Selangor with average house price of RM374,689 per unit. Strong demand has driven an average house price growth of 25.5% over the past five years with landed property segment appreciated the most between 15% to 46.5%. More than 35% of transacted units are situated in the Sepang district where Cyberjaya is located. Another improvement worthy of note is near doubling (94.5%) in condominium/ apartment segment in this district in 2011 from 2007. On the Sepang district’s 2-storey terrace segment, the average price shows an improvement of 77.6%.
In line with MSC Cybercity status, the surrounding development in Cyberjaya (continued next page) consists of IT office buildings and
COVER STORY
(from previous page) The Sepang district saw a rise in residential developments. Among the upcoming residential projects in Cyberjaya are those by major developers such as OSK and SP Setia. Some of the completed and upcoming residential projects include Serin Residency, Symphony Hills, Garden Residence and Perdana Lakeview. Demand for condominiums/ apartment is strong as seen in the sales performance of the new launches. For example, Shaftburry Square, a mixed development comprising an office tower, service suites and retail lots were sold out less than two months after it was launched. The retail lots were sold at prices ranging from RM900 to RM1,000 psf, whilst the serviced suites were sold starting at RM420psf.
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Here are excerpts from Ir. Hafidz’s interview:
Ir. Hafidz Hashim, Managing Director, Cyberview Sdn. Bhd
What are the primary factors that has drawn these foreign investors to Cyberjaya? Cyberview’s role is not limited to plan; they also oversee the whole city-wide maintenance and spearhead investor interface and communitycentric programmes in Cyberjaya
The implementation of real estate initiatives was privatized to Cyberview Sdn. Bhd as an entity to implement va r i o u s d e ve l o p m e n t f r o m t h e beginning. On the other side, Setia Haruman Sdn. Bhd.acted as the master developer of Cyberjaya. Cyberview’s role is not limited to plan; they also oversee the whole city-wide maintenance and spearhead investor interface and community-centric programmes in Cyberjaya. Cyberview Sdn. Bhd. managing director Ir. Hafidz Hashim emphasizes that Cyberjaya has own strenght as its unique selling proposition. In an interview with Property Quotient (PQ) recently, Ir. Hafidz said Cyberview will rollout initiatives to improve its connectivity as well as a plan to make Cyberjaya a new CBD precint.
(continued next page)
Cyberjaya is the strategic choice for international investment location, it has a conducive environment for business, living and study as well as attractive destination for various players. Potential-wise, Cyberjaya has a great world-class infrastructure that draws foreign investors here.
What is the unique selling proposition for Cyberjaya? Our location is just next to the Kuala Lumpur International Airport as an international gateway. But we are not always reliant on our location. The township development itself focuses on information technology (IT) and IT-enabler industries is the key point.
What are the plans and strategies that you have put in place to make sure Cyberjaya succeed as a CBD precint? The 141 acre Cyberjaya city centre that kick start by the end of this year will have enough content to serve investors as a real CBD precint. Right now, we are in midst of an evalution process of the master plan for this project.
What is your next plan to improve Cyberjaya’s connectivity? At a later stage, the real public transport with the full combination of LRT/ MRT and public buses will be expanded until a radius of 50km.
COVER STORY
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(from previous page)
The availability of multinational companies, academic institutions and other upcoming projects coupled with initiatives by InvestKL and Talent Corporation will drive a steady stream of population to the locality
As a conclusion, in the immediate term, the number of condominiums/ apartments available by 2013/2014 is approximately 4,916 units. At present, there is no SOHO/ SOVO/ SOFO development in Cyberjaya. Based on the selected developments survey conducted within a radius of 10km, most of the developments in Cyberjaya are condominiums/ serviced apartments. The existing supplies of condominiums/ serviced apartment are shown in the Figure 2.
base for Multimedia Super Corridor (MSC) companies into an attractive residential enclave. Lastly, the current population in Cyberjaya is comparatively low in comparison to its neighbouring areas such Puchong and Sepang town. This may hamper the sales growth. However, this factor is mitigated by the availability of multi-national companies, academic institutions and other upcoming projects coupled with initiatives by InvestKL and Talent Corporation which provide a steady stream of population to the locality and ensure Cyberjaya flourishes into a vibrant township.
Any risk of economic crisis recurring is mitigated by the present robust local The notable projects expected to change the scenario of the Cyberjaya’s property property market. market is redevelopment of Smart City The premium residential properties such involving GDV of RM10 billion. as Symphony Hills, Garden Residence, Perdana Lakeview series and the commercial developments such as the For more information about Cyberjaya Neocyber, Shaftsbury Square and the and Cyberview, visit phase of CBD Perdana will transform http://www.cyberjaya-msc.com.my; http://www.cyberview.com.my Cyberjaya from being just primarily a
Figure 2: Notable Projects With Foreign Involvement in Infrastructure Hospitality, Commercial and Industrial Development in Malaysia Project
Type
Launched in
Expected completion
Built-up area (sq.ft)
Selling price rate per sq.ft (RM)
Sales performance (as of July ‘11)
Total Units
Serin Residency
Condominium
2011
2014
965 - 3,527
280
75%
600
The Arc
Condominium
2011
2013
913 - 1,915
394
60%
1,000
The Place@ Cyberjaya
Serviced Apartment
2010
2014
549 - 750
450
Sold out
190
Garden Plaza
Serviced Apartment
2010
2014
450 - 1,000
571
Sold out
980
Emkay Laketown
Domain@ Cyberjaya
Serviced Apartment
2010
2013
550 - 750
255
90%
242
Shaftsbury Capital
Shaftsbury Square
Serviced Apartment
2010
2013
463 - 906
423
Sold out (Block A)
366
D Pulze
Serviced Apartment
2010
2013
453 - 676
520
No data
482
Cyberia Crescent 3
Condominium
2005
2007
1,246
228
Sold out
186
Cyberia Crescent
Condominium
2004
2007
1,050 1,890
286
Sold out
102
Cyberia Smarthomes
Condominium
2000
2002
915 - 1,150
180
Sold out
348
Cyberia Condominium
Condominium
2000
2002
900 - 1,050
168
Sold out
420
Developer Villamas Maju Puncakbumi S/B MCT Homes MyVilla Department
D Pulze Venture Paramoden (subsidiary of MKLand)
Source: MPI Research