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ON FRIDAY
SEPTEMBER 18, 2015
SabahandSarawak
property
outlook
> Propertymarket overview
KotaKinabalu
Sandakan
Lahad Datu
Tawau
Sibu
Bintulu
Miri
Labuan
Keningau
>
<
>
<
>
<
>
<
>
<
>
<
>
<
>
<
>
<
>
<
600,000 650,000
1,000,000
1,100,000
400,000
420,000
700,000
750,000
360,000
420,000
550,000
620,000
301,000
322,000
432,000
552,000
327,000
370,000
522,000
581,000
342,000
495,000
392,000
599,000
366,000
573,000
482,000
648,000
396,000
587,000
220,000
380,000
500,000
250,000
422,000
577,000
Legend:
AverageTransacted Price of 2
storeyTerraced House
(RM per unit)
Year
2013
Year
2014
2015
Outlook
Average Transacted Price of 2
storey Semi-Detached House
(RM per unit)
Year
2013
Year
2014
2015
Outlook
TURN TO
PAGE 26
X
W
HILE
a report citing
Institut Rakyat director
Yin Shao Loong
mentioned that Sabah
has themost expensive homes in
Malaysia, costing some 11 times
more than a family’s median annual
income of RM34,320 (followed by
Sarawak, then Kuala Lumpur), a
study by CHWilliams TalharWong
and Yeo on the property scene in
Sarawak signalled growth in the last
five years.
SARAWAK SCENE
CHWilliams TalharWong &Yeo
managing director Robert Ting
states: “There has been a hike in
property prices in Sarawak over the
last five years, recording impressive
increases of between 10% and 15%
per annumor evenmore, especially
for prime residential and
commercial units. The residential
sector has seen a shift, to high-rise
residential developments especially
in the urban areas of themajor
towns and cities such as Kuching,
where high-rise residential
developments have even exceeded
that of landed residential for its
urban area. There has also been a
huge growth in the commercial
sector for Sarawak with high
numbers of shophouse units coming
into themarket in the last few years,
as well as the proliferation of retail
space which has increased bymore
than twomillion sq ft for Kuching in
the past five years and close to four
million sq ft in the last eight years.”
Ting adds that although the
market has been growing at a
prolific rate in the last five years, it
seems to be slowing down in terms
of take-up rates. However, prices
are still increasing albeit at a lower
rate. Price adjustments have also
begun due to the implementation of
GST.
In all, Ting feels that the
propertymarket in Sarawak will
continue to be positive. However,
property developers will see a
slower intake of properties – “a
decline in volume of sales. In short –
prices will increase but transactions
will slowdown”.
In fact, some sectors are already
showing signs of saturation such as
the commercial shophouse and
retail sector with increasing
vacancy rates and negotiable and
reduced rentals. Themarket seems
to have “softened” and sales are
somewhat dampened by the low
buyers’ sentiment following the
latest negative developments in the
economic and political arena of the
country.
Prices of property in Sarawak is
fairly low comparedwith KL. Then
again, Ting adds, the rate of
increase has been “scary” in recent
years. “This is due to the generally
lower average household income in
Sarawak comparedwith KL. There
will be increasing disparity between
what themarket is offering and the
demand of the general population
should property price continue to
increase at the rate it has been rising
at. Affordability of property in
Sarawak is now an issue and a
pressing problem to provide good
basic housing for the community at
large,” Ting commented.
SABAH STANDING
Over in Sabah, CHWilliams Talhar
&Wong (Sabah) managing director
Robin Chung shared his views. “For
Sabah, in general, the property
market has been quite active with a
number of newdevelopments
launched (especially in Kota
Kinabalu), which has also been
going through a growth phase in the
earlier part of the last five years
with a rise in property prices. But
the decline in commodity prices (i.
e. CPO-profits fromoil palmbeing
one of themain drivers of the
propertymarket) in the later part of
2012, the Central Bank’s
implementation of tighter lending
guidelines and coolingmeasures
between 2012 and 2014, plus buyers’
difficulty in getting loans approved
as well as less favourable economic
conditions of late … these have seen
more cautious sentiments and
transaction activities taking a
breather with prices levelling off.”
Price wise compared to KL
property, Chung reveals that the
newor on-going condominiums in
KKCBD ranges between RM700
and RM1,000 per sq ft … “roughly
averaging to RM800 to RM850 per
Taman Rimba, Phase 3, KotaKinabalu.