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
Your are quoting year 2016 and i m talking on residential completion by year 2013/2014. Anyway doesnt matter. Many choose not to stay in ciber mainly due to shortage of amenities and entertainments. Mostly those staying in ciber are students. I heard Overtime was supposely open an outlet in shafstbury square but was denied a licience by the authority. The place simply not happening and vibrant yet to attract night population. Once those projects completed in 2013/2014, how many choose to stay there? If only depend on students, can the coming supplies be fully absorbed? The only mall coming up is D'Pulze with cinema, hopefully it will make the place more vibrant to stay.
Aug 30 2012, 06:34 PM
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