Cyberjaya will be over supply in next 2 years whn all the projects launched in 2010/2011 completed. Is it doable to invest here? Expecting stiff competition coming soon.

Understand your concern on oversupply, Worgen. Would you mind sharing why you think there will be an oversupply issue? Perhaps there are something that you know which we all don't know.

Don't get me wrong, I'm not doubting your statement but I just feel amazed at how people simply use the word 'oversupply' of properties in certain development area, without sharing the facts and figures.

My understanding is, ther current daytime population in Cyberjaya is 54,000 with only 10,000 residents chose to live there (ie night time population). There are about 3200 residential units in Cyberjaya NOW which works out to be an average of 3 person occupying one unit. So thw facts and figures show that there is currently shortage of residential properties in Cyberjaya.

By 2016, the daytime population in Cyberjaya is expected to increase to 100,000 due to the increase in number of MNCs, SMEs and educational institutions. Let's assume 20% of the 100,000 daytime population decides to live in Cyberjaya (that is already very conservative and actual percentage will depends on how Cyberjaya developed into a lifestyle township by 2016) - that will mean there is a projected 20,000 residents (ie night time population in Cyberjaya).

By 2016, with all the projects currently in the pipeline being completed, there will be a total of 14,000 residential units. So we are looking at 20,000 residents to 14,000 residential units by 2016 which works out to an average of 1.4 people per unit. I don't know about you but this doesn't sound like an oversupply to me. Remember there will also be a preference on certain types of residential properties eg apartments, bungalows, terrace house etc, so there may also be a concentration of preference towards certain quarters of property type, which will add on to the shortage.

Unless we have another 10-15 projects being launched over the next 1-2 years, based on the facts and figures above, oversupply doesn't seem to be an issue now. On the contrary, a shortage of supply MAY be possible if you digest the numbers above.

Of course, the economics of property market is not purely science as it also depends on a lot of other factors but I am just sharing the facts and figures to help investors out there to make a sound decision. Being an investor myself, I'm happy to exchange sharing as I am also learning stuff everyday

Good sharing. Saw u share such view at many threads.

Many people don't buy Cyberjaya because they say, only a minimal percentage of people working at Cyberjaya, choose to stay at Cyberjaya.

We see the reverse. This is 1 reason why we buy.

I did reply someone with the same thought as yours:
http://forum.lowyat.net/topic/2486682/+100

"very good analysis.. HOWEVER.. i think there is something missed out which "the right type of property for the right type of market" ..

Generally, I only see 2 types of properties in Cyber..
1) highend condos and landed props that worth > 800k
2) property cater for short term staying (SoXo, studio) and student market.. (e.g. The Place, dpulse, ARC)

But for those cater for general mass (2storey DSL, >1000sqft apartment/condo) are less.. and these are the biggest market segment for Cyberjaya working population, young adults, family, ppl who gonna start a family.. that is why properties surrounding cyberjaya are still prefered choice of many due to cheaper and bigger home... Amenity is just part of the story... IMHO, price vs build up also part of house buyers consideration..

All the landed props in Cyber are of highend which is pretty much beyond reach of majority of cyberjaya working adults.. are there working adults buy SOHO n studio for own stay? mostly i heard are for investment.. renting this pigeon holes could cost 1/3 of average working adults in Cyberjaya..

Thus IMHO, SK, Puchong, Serdang, Kajang etc still remain top pick due to its more affordable house, more variety, pay less for more build up compare to cyber..

p/s: for other prime location like KL n PJ, ppl willing to pay more for less space due to its amenities.. but i dont see the same for cyberjaya at this moment..

my 2c"

This pretty much reminds me the situation in China... there are plenty of demand for houses there, with the amount of population, houses are not enough... by using your "house to population ratio", China should be shortage of houses, but why are there still plenty of empty units?

Plenty of ghost cities with empty highrise apartments, but on ground level, citizens are still squeezing 5 families renting in 1 house.. The product (more specifically "price tag") did not meet its demand...

my 2c.. cheers..

In fact, I like Damansara the most.

Our house at Sri Damansara costs RM 800k, even an old house at Kepong costs RM 600k. It is hard to simply tie the working population to house price. If u ask how many working & staying at Kepong, how can the house there be affortable? It is like DesaPark City 15 years ago. Today, Kepong address has DesaPark City, Sunway SPK, & tonnes of condo development.

If Eco Glades building at Damansara, it will cost me > RM 2 M which is double.

Don't forget Malaysia government is building 1 Malaysia home, it will costs > RM 300k and it is never cheap. If even the government is building and selling expensive, what can the developer do loh?

Interesting point, not forgetting working population with higher position especially in the finance and industrial sectors are much much more in KL and PJ... Cyberjaya workforce are relatively young.. come and visit during lunch time..

my 2c...

I told already. It is hard to simply tie the working population to house price.

Yes, I believe Cyberjaya will slowly attracts people like magnet, not limited to only those working there.

Brother, I like your comments.

gua student mmu,kesian gua semua tempat tinggal mahal

I don't see High End Residences landed house has this issue.

For condo may or may not, who knows investor like me end up moving in?

Interesting point, not forgetting working population with higher position especially in the finance and industrial sectors are much much more in KL and PJ... Cyberjaya workforce are relatively young.. come and visit during lunch time..

my 2c...

Agreed.

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Added on September 24, 2012, 12:22 am
Many times went to Starbucks during lunch time,u really can see the different..compare with puchong area

cyber for ownstay is ok lah.

for investment,  i think susah sikit as nearly 80%-90% buyers are flippers for the highrise. not easy to rent with +ve cashflow and flip upon VP due to high prices and high volume.

my worthless 2 cents

Is Garden REsidence part of Cyberjaya?

Malaysia can never play rental yield.

Malaysia interest rate is too high.

Whether people buy for investment or own stay, it is yet to see, Summer Glades & Garden Residence will be a good reference.

izzit? Malaysia so cham huh? 

how come many taikors still enjoy high rental yield especially investments outside ciber? 

This is what I think:

1. If u have S$ 200k, put it in Malaysia FD, u get annual interest of S$ 6k.

2. If u buy S$ 200k property with cash, high rental yield 6%, u get annual rental of S$ 12k.
>>> Believe everyone will agree 6% nett is high enough.

3. If u leverage 4 times of S$ 200k, u buy S$ 800k property with cash & loan, high rental yield 6%, u get annual rental of S$ 48k; average interest charge 4.5%, annual interest charge S$ 27k; u get annual income of S$ 21k.
>>> Believe everyone will agree this is very high risk. I see this is very tough to implement in Malaysia, unless u have a "way", everyone shall understand what I mean.

To us is simple:

We leverage 4 times of S$ 200k, buy S$ 800k property with cash & loan, average rental yield 4.5%, annual rental of S$ 36k; average interest charge 1.5%, annual interest charge S$ 9k; annual income of S$ 27k.

Making it happen. For details, see my future thread...

any coming lrt station in CJ ? if yes,i dont mind to buy one.