Went to drive around Cyberjaya last weekend after all the hype about developments going on there. Initially, I wasn't quite convinced that it will be anything big (at least not soon) but looking further ahead and after checking out all the projects there, I've changed my thoughts.

Here's my thoughts (critics and comments welcomed!) :

I feel there is a potential for it to be something 'big' - question is whether it will be 3 years, 5 years or 10 years, but personally it's a matter of time. Here's why I've said that. The fundamentals are there. The government has a big commitment to develop Cyberjaya due to their 'promise' to many MNCs already there, so they cannot afford this to fail. Many large developers (SP Setia, Mah Sing, OSK etc) are already present there so there must be strong fundamentals going forward. It will be a matter of time before the demand here picks up and prices soar. Time is the only variable but I think it will be within the next 10 years.

So I think it all boils down one thing - do I have the holding power if I invest in a property here? This is where I find Cyberjaya unqiue. Unlike earlier successful development townships (Kota Kemuning, Desa Park City, Setia Alam etc etc) where rental demand initially is very poor (you buy and expect little or no rental initially), Cyberjaya ALREADY has good demand for rental market (especially students and employees in Cyberjaya). However, this applies only to selected types of properties like apartments. This is the key point to me - if I buy say an apartment now, I can quite easily rent it out, and provided the rental justifies the purchase price, this property will be 'self-sustainable'. I just have to wait till the right time (ie 3 years, 5 years, 10 years??) and dispose it later.

So, in summary, if you are confident that Cyberjaya will eventually become BIG and there is NOW good market rental that gives a self-sustaining investment, then it seems like a green light for me.

Time to check out some projects

This post has been edited by redman33: Sep 4 2012, 01:48 PM

I personally think this oversupply concern is a chicken and egg situation... there are actually quite a lot of people working in Cyberjaya but most live outside Cyberjaya (ie day population >> night population). Most people tends to live near their workplace but we all know why most employees in Cyberjaya don't - mainly because there is not enough 'lifestyle' (shopping malls, restaurants, cafes, entertainment outlets etc).

There is currently about only 10,000 people living in Cyberjaya with 3200 residential units (that's average of 3 person per unit). That definately sounds to me as shortage of residential properties in Cyberjaya, for NOW.

By 2016, there will be 14,000 residentail units available. The current daytime population is about 54,000 people and is expect to grow to 100,000 by 2016 when more companies and new tertiary institutions opened in Cyberjaya (already in the pipeline).

Simple mathematics tells me that even only 20% of the 100,000 people by 2016 choose to live in Cyberjaya, there will still be a resident population of 20,000. Divide that by the 14,000 residential units available by 2016 gives you 1.4 person per unit. Remember 20% is very conversative as we would expect a higher percentage of daytime population to choose to live in Cyberjaya by 2016 when the 'lifestyle' is made available then.

I did not simply come out with the numbers above - picked it from the following sources (unless the numbers in the sources are not correct la)

http://www.mmail.com.my/story/cyberjaya-quiet-no-more
http://en.wikipedia.org/wiki/Cyberjaya

So will there be an oversupply? Answer is yes and no depending on how confident you are with Cyberjaya having it's own 'lifestyle' by 2016. If you drive around and look at the type of projects going on there, you'll know the answer. One thing is for sure, there ARE a lot of people already working in Cyberjaya - just a question of whether they will choose to live there.

By the way, I'm not attached to any organisation, and not promoting Cyberjaya. I also started being very doubtful about Cyberjaya but the facts are interesting - I'm just a normal joe who is keen with property investments and love crunching numbers to look at the facts. At the end of the day, numbers are only guidelines

Yea, I think Cyberia is interesting in terms of ROI but IMHO, it's purely for rental yield. The apartment will probably struggle to compete with the newer projects to be completed in few years time as people buying for their own stay (if eventually people decided that Cyberjaya is 'livable') will tend to go for the newer units. Cyberia is full of students and may not appeal to home buyers.

Don't get me wrong, I think Cyberia is great but if I am looking for a home, I'll consider other newer units but have to prepare to fork out more. Home buyers generally would not mind fork out a bit more if buying for own stay, but investors are more attached to the 'numbers' when it omes to where to put there money.