Cover Story: IJM Land to Launch New Commercial Centre in IJM Rimbayu Next Month
This article first appeared in City & Country, The Edge Malaysia Weekly on January 20, 2025 – January 26, 2025
What used to be barren land is now a steadily growing township with a population of about 20,000. Since the inception of IJM Rimbayu (Rimbayu) in 2013, developer IJM Land Bhd has delivered more than 5,000 properties in the township, says its chief operating officer Datuk Chai Kian Soon in an interview with City & Country.
“When we started Rimbayu, it was with the idea of having a township that was sustainable and green, that was modelled around many successful townships such as Subang Jaya, Bandar Utama and Taman Tun Dr Ismail,” Chai adds.
Spanning 1,879 acres, the RM12 billion IJM Rimbayu comprises residential (44%), commercial (13%), and industrial developments (2%) as well as infrastructure (24%), open and green spaces (12%) and other amenities (5%). The master plan consists of four precincts: Flora, Fauna, Bayu and Commercial.
Chai says 1,154.84 acres (61.4%) of the township have been developed so far, and the remaining 724.16 acres (38.6%) have been allocated for residential and commercial projects. “We are now focusing on the three precincts and will develop Bayu later. The remaining land is of higher value and meant for more upmarket developments.”
As the township already has residential projects developed in the past decade, Chai says it is time to offer more commercial properties to cater for the needs of residents and the surrounding neighbourhoods.
“For the past 10 years, we have been focusing a lot on mass housing and it turned out to be a good kind of strategy because, in any township, you need to have the population first.
“So, we will have more commercial developments. Since we already have the population, there will be a lot of people who want conveniences. So, that’s what we’re planning to deliver in our upcoming launches in Rimbayu. We have almost everything here and need to make more varied offerings.”
Dynamic hub for small businesses
IJM Land is set launch ROAM, a 5.56-acre commercial project offering four blocks of strata shops and offices. The five-storey Blocks A and C will serve as wings for the three-storey Block B, which is the centrepiece of ROAM, and the four-storey Block D will be an en bloc building.
With a total built-up area of 315,902 sq ft, Block A offers 101 units; Block B, seven units; Block C, 93 units; and Block D, a single unit. These spaces have built-ups ranging from 802 to 3,112 sq ft and estimated selling prices of RM481,800 to RM3.04 million.
“ROAM is poised to become a dynamic commercial hub, designed to cater for the entrepreneurial spirit of our township. Its main unique selling point is that it offers affordable strata retail and office spaces, making it ideal for start-ups and small businesses,” Chai says.
What differentiates ROAM from the township’s previous shopoffice projects are its shared facilities, including lifts, 716 car park bays, a surau and a landscaped park. Chai says the units in Blocks A and C will be up for sale whereas Block B will be owned by IJM Land.
“We are not going to sell the centrepiece because we believe in maintaining control to ensure sustainability. In commercial developments, the common issue is that everything is sold off. Then, once the developer steps away, individual owners are left to manage things themselves, often through a management committee or joint management body. This frequently leads to disputes, with everyone arguing about what should or shouldn’t be done, creating a lot of chaos.
“Having one major shareholder, a big stakeholder, is essential to determining the sustainability of the development. That shareholder is us. We want to remain involved to ensure everything is well organised, the common areas are properly maintained, and everyone pays the maintenance fees. If someone doesn’t pay, we’ll take action. By retaining control, we can ensure the entire development is managed effectively and the common areas are cared for.”
He says the developer’s plan is for Block B to be a dedicated hub for sports- or technology-related activities. Block D, on the other hand, will be either sold as a whole or leased to a single tenant. The developer says Block D could house a hotel, drive-through, sports facility, an event hall or indoor amusement park.
“The en bloc option is something we’re considering, where investors can purchase the entire block. However, we need to carefully determine how best to develop it for everyone’s benefit. It’s not just about selling and letting buyers decide what to do later. In placemaking, we aim to ensure that each component fits seamlessly into and complements the overall development.”
Demand for retail and office spaces
ROAM is not IJM Land’s first commercial offering in the township. Chai says, “ROAM will be developed in the centre of an existing commercial hub, at the entrance of the township and fronting the South Klang Valley Expressway, which runs along the township.”
ROAM will have in its vicinity shopoffice developments such as Blossom Square, comprising 88 two- and three-storey shopoffices; Uptown, comprising 68 two- and three-storey shopoffices; and Uptown Square, with 119 two- and three-storey shoplots.
“Most of the shops we’ve built so far are individually owned shopoffices with no shared facilities. Every time we launch these shops, they sell out immediately and, as soon as they are handed over, businesses move in almost immediately. For example, our Uptown development was handed over in April and is already thriving. Jaecoo (automobile sales and service centre) has opened there, along with several restaurants.
“While many buyers are investors, the key factor is that these spaces are actively being used for business. Some buyers rent out their units, while others operate their businesses there. This creates a dynamic and bustling environment. We’ve noticed consistent demand for landed shops, especially two- and three-story units.”
Chai adds that the ground-floor units are often tenanted by eateries and daily conveniences, and the upper-floor units are used as small offices by entrepreneurs and small businesses.
“During the pandemic, many businesses operated from home, converting garages, bedrooms and other corners of their homes into workspaces. While this worked for some, it isn’t a long-term solution for growing businesses. Home environments come with distractions — children, elderly family members and a lack of space for inventory. As these businesses expand, they need proper office spaces, especially in the range of 1,000 to 1,500 sq ft.
“While malls with air-conditioned common areas are attractive, we avoid building such spaces because of high costs. Also, there are already malls nearby, so we are focusing on creating practical, affordable commercial spaces.”
Another major driver of demand, he says, is industrial growth in nearby areas such as Banting and Jenjarom. With more industries setting up there, companies need office space away from the factories to attract employees, Chai says.
“Operational offices, administrative headquarters and other business hubs require convenient locations with easy access to amenities. Employees are more likely to work in areas where they can eat, shop and relax, which isn’t feasible in industrial areas.
“Our [commercial] developments provide this convenience and accessibility. The proximity to shops, restaurants and other facilities makes Rimbayu an attractive choice for businesses and professionals.”
Chai says the ground and upper floors fetch 5.5% to 6.5% in rental yields per year. As for recent rental rates, ground-floor units fetch RM7,000 to RM8,000 per month, and the upper floors fetch RM2,000 to RM2,500 per month. A whole intermediate lot can be rented for about RM10,000 per month and entire corner lot for about RM28,000 per month.
“We are confident about achieving strong rental returns because there is significant demand for these types of developments. At Eco Sanctuary, for example, they have some strata developments, including small shopoffices and strata offices. These units are 400 to 500 sq ft in size and generate rents of about RM2,000 per month for such a small space.
“This demand is driven by the growing population of this Kuala Langat area. People are increasingly looking for nearby offices that suit their needs so there is no need to commute to the city centre. Nowadays, with many of us relying on conference calls and digital banking, there is no longer a need to travel far for work or services. People just want a convenient workspace close to where they live.”
Chai believes ROAM will encourage entrepreneurs to set up their offices and the retail spaces can be occupied by clinics, pharmacies, banks and cafés, which are now a growing trend at Rimbayu.
Steady growth
Some of IJM Land’s recent launches at Rimbayu, a mix of residential and commercial offerings, have recorded healthy take-up rates. The 16.42-acre Uptown Square, comprising shopoffices with selling prices from RM2.086 million, have been fully sold.
The 45.05-acre Avela, comprising 445 two-storey linkhomes with selling prices from RM1.042 million, has been 90% taken up. The 9.77-acre Promenande commercial development, which has 110 shopoffices with prices from RM2.089 million, has been fully sold.
Following the unveiling of ROAM in February, the developer plans to launch Meta Residences, the township’s very first high-rise residential development. The project will offer 996 units that come in built-ups of 550 to 1,000 sq ft, with prices from RM250,000 to RM550,000.
Chai observes that land for residential development in the township is already limited, making a high-rise residential project a necessary solution.
“It took about 30 years for this area to develop and become as populated as it is today. High-rise developments are now emerging, and we are witnessing significant progress as these structures begin to take shape,” he says.
“Previously, most of the development here was focused on landed properties. There were many landed projects in Rimbayu and the surrounding areas. However, we can now see a shift, as even our neighbours have begun developing high-rises. This shift is a natural progression. Initially, people moved farther away from the city centre to buy landed homes, but as land becomes increasingly scarce, it indicates that the area has developed extensively.
“When an area is fully developed, facilities and amenities are already in place. As a result, land becomes limited and more expensive, making landed properties less affordable for many buyers. At this point, the only solution is to build vertically. High-rise developments allow properties to be more affordable, especially for young families and first-time homebuyers who face affordability challenges.”
Transitioning from landed developments, which are relatively straightforward and high in demand, to high-rise projects requires careful planning because high-rise living is more challenging to market, Chai says. The buyer pool is smaller and the demand is different, which is why placemaking is critical, he stresses.
As for IJM Land’s upcoming projects in other locations, Chai says the developer will be launching Suria Hill, comprising bungalows, in Puncak Alam; the final phase of Riana Dutamas, Stellaris serviced apartment, in Segambut; The Light Waterfront Penang mixed-use development; and the Pantai Sentral Park master plan in Kuala Lumpur.
On his market outlook for the township and Kuala Langat in general, he says, “If we compare it to a growth journey, it’s like watching a baby grow into a young adult who is ready to enter the workforce. This area has developed to the point where it’s full of potential, with people looking to build their families and careers here. As a result, we see commercial activities increasing and thriving in the near future. We’ve worked to create an attractive environment with thriving businesses, desirable amenities and lifestyle-driven conveniences.
“The success of a township isn’t about luck; it’s about deliberate planning and execution. Community building, placemaking and ensuring proper management are the behind-the-scenes efforts that define a thriving township. It is always intentional efforts.”
Media: The Edge Malaysia
Read more: https://theedgemalaysia.com/node/741303
