Curvo Residences is the final residential phase of the first integrated development in Setapak, SkyArena.
The much-hyped, much-debated Bandar Malaysia is back on. The mega township project in Kuala Lumpur was previously terminated in May 2017. It is now revived, following the signing of a framework agreement with China on 19 April 2019.
Tun Dr Mahathir Mohamad announced the revival of the project by agreeing to sell a 60% stake in the project for RM7.41 billion to IWH-CREC Sdn Bhd, a joint-venture (JV) entity between Iskandar Waterfront Holdings Sdn Bhd (IWH) and China Railway Engineering Corp (CREC). IWH-CREC Sdn Bhd has been maintained as the project’s master developer.
“Like the ECRL, the Bandar Malaysia project should be viewed within the larger context of fostering and cementing long-term bilateral relations between Malaysia and China, while ensuring that such projects add maximum economic value to the country,” the Prime Minister’s Office said.
The 486-acre integrated property development project was previously linked to the controversial 1Malaysia Development Bhd (1MDB) and was supposed to host the high-speed rail terminus. The development is expected to be “people-centric”, and add value to the economy.
The project will include a people’s park, 10,000 units of affordable homes, Bumiputra participation throughout the project, and priority for the use of local content in the construction process.
The project is expected to generate an expected gross development value (GDV) of RM140 billion and draw major international financial institutions, multinational corporations and Fortune 500 Companies to locate their regional headquarters in Bandar Malaysia.
“Bandar Malaysia will be a trailblazer in urban planning, being a transit-oriented development (TOD) that will optimise the amount of residential, business and leisure space and contribute towards a greener environment by facilitating and incentivising the use of public transport over private vehicles,” the Prime Minister’s Officer also said.
Address: Royal Malaysian Air Force Base, 57100 Kuala Lumpur, Federal Territory of Kuala Lumpur
Property Type: Integrated mixed development
Total Units: 10,000 affordable homes
Gallery GPS Coordinates: 3.130850, 101.700807
Project Details
Bandar Malaysia was originally designed to house the terminus of the high-speed (HSR) rail line that would link Kuala Lumpur to Singapore, and it would cut travel time between the cities to 90 minutes. The 350km-HSR was to have seven stops – starting in Bandar Malaysia and ending in Jurong East, Singapore. To date, this project remains suspended. Transport Minister Anthony Loke said that the project may be revisited when the country is more financially sound. The rail project, along with the third mass rapid transit (MRT) line, was stopped in May 2019.
The project is intended to house a shopping mall, canals, 10,000 affordable homes, theme parks, cultural villages, a financial centre, and China Railway Engineering Corp’s (CREC) $2bn regional headquarters. The Tun Razak Exchange will be 3km away, and this is poised to be Kuala Lumpur’s leading centre for international finance and business.
Housing and Local Government Minister Zuraida Kamaruddin said that along with great facilities and affordable homes, there would be a 148-acre (60ha) park at Bandar Malaysia. “The park will be designed like Hyde Park (in London),” said Zuraida.
“The land (on which the affordable homes are to be built) belongs to the government. These 10,000 units of affordable homes are the government’s commitment to cater for the lower income groups of M20, B40 and first-time house buyers, including the youth. The housing units will be built vertically but are not high-rises,” she said.
She added, “These units will be at least 900 sq ft for families with children, and 550 sq ft for couples without children and singles. The price will be capped at RM300,000 and it will be on a rent-to-own basis.”
As at July 2019, the sale and purchase agreement for the Bandar Malaysia project is expected to be inked soon, said Finance Minister Lim Guan Eng. The government, and developer IWH CREC Sdn Bhd (ICSB), will determine the strategic direction of the development of Bandar Malaysia. The agreement is expected to be signed in the near future.
Location
The Bandar Malaysia project will be built at the old Sungai Besi Air Force base. The project is still regarded as having great potential, provided that it is developed with careful planning. Initially, Bandar Malaysia was to house the terminus of the shelved Kuala Lumpur-Singapore high-speed rail (HSR) line. The project is pending a review, with a decision due in May 2020.
On whether the project would house a terminal for the HSR, Dr Mahathir said, “If we do build the HSR, there will be sufficient room for the station. The contract has not been given out.”
However, even without the HSR, the development is still attractive due to its strategic location and future mass rapid transit (MRT) stations. Some property players opine that the land may be able to fetch a higher valuation that even exceeds the earlier valuation that IWH CREC was willing to pay, as the land’s value is expected to appreciate over time.
Given the site’s prime location and high connectivity to KL’s city centre (KLCC) and the south, Bandar Malaysia will enjoy access to the heart of the city via the SMART Tunnel and to Putrajaya via the Maju Expressway.
Accessibility
- East-West Link Expressway
- Sungai Besi Highway (Besraya)
- Kuala Lumpur-Seremban Expressway, which leads to Kuchai Lama
- Jalan Sungai Besi
- Jalan Tun Razak
- Jalan Loke Yew
- Federal Highway
- MRT Bandar Malaysia
- New Pantai Expressway (NPE)
- North-South Expressway (NSE)
- LRT Salak Selatan
- KTM Salak Selatan
- LRT Cheras
- LRT & MRT Chan Sow Lin
Education
- SJK (C) Tai Thung
- SK Jalan Sungai Besi 1
- SK Jalan Sungai Besi 2
- SJK (C) Confucian
- Tsun Jin High School
- HELP College of Arts & Technology
- UCSI University
Medical Care
- Hospital Universiti Kebangsaan (HUKM)
- Prince Court Medical Centre
- Hospital Rehabilitasi Cheras
Shopping
- AEON Taman Maluri
- Sunway Velocity Mall
- IKEA Cheras
- MyTOWN Shopping Centre
- Viva Shopping Mall
- Mid Valley Megamall
- Kuala Lumpur City Centre (KLCC) / Suria KLCC
Recreation
- Royal Selangor Golf Club
- Zouk Club Kuala Lumpur
Analysis
Bandar Malaysia, and the East Coast Rail Link (ECRL) which was relaunched in July 2019, are expected to be a significant contribution to the Belt and Road Initiative, which Malaysia expects to be able to tap on its multiplier effects.
New construction works in Bandar Malaysia will also benefit building material players over the longer run. CIMB Research noted that the construction of 10,000 affordable homes and prioritising local content in the construction phase will enhance job flows over a period of time.
Hong Leong Investment Bank Research (HLIB Research) anticipated that the Bandar Malaysia project could present RM70 billion of potential jobs for the construction industry. This is based on the assumption that 50% of the RM140 billion GDV would be the construction cost.
Summary
The current government will need some time to figure out the next step for Bandar Malaysia. They also have several other mega projects to address, including the Tun Razak Exchange, which will welcome its first tenant in 2019, and expected to be completed in 2023. Once the government is done focusing on other mega projects and has regained financial strength, it should then shift its focus to Bandar Malaysia.
Due to the current sluggish economic condition, some would say that this project is very risky and could lead to an oversupply of commercial properties. However, due to its strategic location, Bandar Malaysia should attract major international financial institutions and multinational corporations (MNCs) to set up their base and provide a growth-positive sentiment for Malaysia’s long-term economy.