Sarawak’s property market expected to see same growth

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KUCHING: For 2010 to 2020, the state’s property market is expected see similar growth trends with that experienced between 2000 to 2009, says CH Williams Talhar Wong and Yeo Sdn Bhd (WTWY).

According to managing director Robert Ting, the market is expected to slow down this year with expected gross domestic product (GDP) growth of four to five per cent, but with parts of Sarawak affected by the Sarawak Corridor of Renewable Energy (SCORE) to be an exception.

“Additional demand is also antipated from the increased workforce for SCORE projects,” he said during his session at the Travilion Property Fair 2013, adding that Bintulu, Sibu and Mukah in central region will benefit more particularly after 2015.

With the ongoing property price hike, coupled with high inflationary pressures on food, consumables and transport, Ting noted that household priority has shifted to basic needs which leaves less disposable income for housing.

“This is why there has been increasing interest in the secondary market as an alternative,” he added.

Nevertheless, Ting noted that there was still a lot of demand still for residential properties.

This is evident in the number of residential properties completed between 2008 to 2013 which still shows strong demand for residential properties.

More than 9,000 residential properties were completed in Kuching within that period, followed by Miri (more than 7,000 properties), Sibu (about 7,000 properties), Samarahan (about 5,000) and Bintulu (about 1,500), Ting highlighted.

When asked on whether prices of properties will drop in Sarawak, Ting replied that, the situation was very different here than from that of West Malaysia.

Sarawakian developers take a different approach in releasing property projects, which vastly differed from developers in Peninsular Malaysia.

“In West Malaysia, when they launch a property, developers tend to launch a large amount of units at one go.

Here, developers prefer to release small amount of units each time.

So chances of property price drop is quite slim in Sarawak,” he opined.

“It is observed that many Sarawakians tend to adopt this strategy: If you put your money into properties, you can hedge this against inflations.

So when the property prices goes up, your investment goes up.

” Though the market appeared to be slowing down, there is still a lot of construction activities going on due to the past two years’ prolific development.

As such, Ting believed that the residential sector will continue to remain the mainstay of the property sector with close to 50 per cent of transactions contributed by residential projects.

Meanwhile, Sarawak’s commercial property sector experienced a slowdown compared to the past two years and will pick up on the medium to long term period, Ting said.

“Prospects for commercial properties in Sarawak is good as the business community is growing with the state’s increasing development,” Ting said, adding this was further boosted by the SCORE projects concentrated in the central region of the state.

Looking at the industrial sector here, the WTWY managing director said for the coming decade, private industrial estates will continue to have demand for their semi-detached and detached units for small and medum enterprises (SMEs) and small and medium industries.

Source From: Borneo Post Online

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