A trunk of treasures (part 3)

Continued from part 2 By Kevin Eichenberger kevin.eichenberger@thestar.com.my Cyberjaya Source: Brickz A S a much-lauded initiative to create the “Silicon Valley of Malaysia”, property prices in Cyberjaya have been significantly higher than the average across the state of Selangor since the township’s inception in the late 1990s. While the median price (psf) of properties in the rest of Selangor only rose between RM 100 (psf) to RM 200 (psf) between 2005 and 2009, the median price (psf) of residential properties in Cyberjaya ranged from RM 250 (psf) to RM 500 (psf) in the same period.

Following the nation’s recovery post-2009, when the median price (psf) in Selangor rose steadily from RM 200 to RM 350 (psf) between 2009 and 2019, Cyberjaya’s median price (psf) peaked at RM 650 (psf) before settling just above the median of the whole state.

One of the main disadvantages residents of Cyberjaya have had to endure is a public transportation network that lacks coverage for last-mile commutes – but the addition of two new MRT stations are expected to be completed by 2022.

With these additional stations, median property prices in Cyberjaya are expected to continue rising above the rest of the state.

Bandar Saujana Putra (Putrajaya) As a township developed by LBS Bina and situated within close proximity to various universities and international schools in neighbouring Cyberjaya and Putrajaya, the median price (psf) of residential properties in Bandar Saujana Putra have been consistently higher than in Kuala Langat and Selangor at large.

While the median price (psf) has dropped in previous years, likely due to concerns of traffic congestion on the few roads into the area, property prices have never dipped below those found in neighbouring districts.

Following the announcement of a proposed flyover between the Elite highway and the South Klang Valley Expressway (SKVE), prices have apparently recovered and reached record highs.

Melaka (Outskirts) Source: Brickz The city known as the historical capital of Malaysia was once the setting of conflicts between various colonial powers vying for control of maritime trade through the Straits of Malacca, but in the 21st century, Melaka is widely regarded as the safest place to live and has the lowest unemployment rate in Malaysia (at 1%).

While property values stagnated in the years leading up to the post-2009 economic recovery, the total value of residential property transactions began to rise significantly after 2010 – with the completion of additional rail infrastructure and Melaka being declared a developed state.

Following the most recent peak in 2014, the total value of property transactions declined in 2015 to dip slightly below 2014 levels, but new records are expected to be established once the KL – Singapore High Speed Rail (HSR) station in Melaka is completed in 2026.

Seremban Source: Brickz Situated 60 kilometres from Kuala Lumpur, 30 kilometres from the western coast, and being closer to the Kuala Lumpur International Airport than the nation’s capital, Seremban has been one of the areas of particular interest to property investors looking for potential short term rentals and reasonably priced homes beyond the Klang Valley.

With new satellite townships being developed by the likes of Sime Darby, Mah Sing, and Matrix Concepts, in addition to a number of new highways being planned to connect the upcoming townships with the Klang Valley and Seremban proper, the total value of residential property transactions increased significantly between 2013 and 2017.  As another confirmed stop on the KL-Singapore HSR route, Seremban is expected to grow beyond the traditional town limits and is expected to achieve city status by 2020.

Iskandar Puteri Source: Brickz The statistical figures for Sunway Iskandar is still lacking due to the newness of the township.

The nearest comparison would be Iskandar Puter, formerly known as Nusajaya, which represents the largest series of investments into property development outside of Johor Bahru.

Statistics for property transactions in Sunway Iskandar are still lacking due to the township only having recently emerged.

But the larger area of Iskandar Puteri, formerly known as Nusajaya, represents the largest series of investments into property development outside of Johor Bahru.

With the completion of the Legoland Resort and the Puteri Harbour Family Theme Park in 2012, along with several other waterfront resorts situated along the Straits of Johor, Iskandar Puteri’s status as a resort town led to a surge in median property prices (psf) – exceeding the median across the entire state of Johor.

While the peak median price of RM500 psf in 2013 has not been matched since, property values have remained above the lowest point of RM 350 (psf) in 2016 – still a significant difference from the state’s overall median price of RM 150 (psf) in the same year and RM 290 (psf) in 2019.  Despite recent changes to the route planned for the KL-Singapore HSR potentially resulting in the loss of a station, Iskandar Puteri still manages to draw interest among property investors and tourists from Singapore – who can potentially spend the day in Malaysia’s southernmost city by taking a short ride on a bus across the causeway.

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