KUCHING: New launches for high-rise residential units in the state capital have fallen by about 50 percent last year from more than 3,000 units launched in 2017.
The sharp decline is attributed to the current large incoming supply of new units and signs of slower sales and lower rentals.
“The apparent glut in the supply of apartments has resulted in a drop in occupancies and take-up rates/rentals.
“This large supply of new apartment units in the market has led to slower sales especially for higher density projects,” according to leading property consultant C H Williams Talhar Wong & Yeo Sdn Bhd (WTWY) in its newly released “Sarawak Property Market: 2018 property market review and outlook” Report.
The report said the stiff competition amongst such readily available units in the city has curtailed any further increase in sale prices, which have been hovering around RM500 psf for units in primary locations and RM400 psf for those in secondary locations, based on the size and specifications.
“Standard unit sizes are now slightly reduced to around 1,000 sf and most units offered come with better packages and more perks, such as built-in cupboards, curtains, water heater, air-cons etc.
“Asking rentals for apartment units have also decreased and are highly negotiable, and net yields are only around 3 percent,” it added.
WTWY said high-rise residential units are mostly developed as part of a mixed development in order to achieve the desired density for the developer as development land policies in Sarawak limit pure residential high-rise development to only 30 units per acre, revised from 24 units in 2017.
This, it pointed out, may result in redundant commercial units in order to fulfil planning requirements as observed in some recently completed developments.
For 2018, the Batu Kawa area recorded the highest number of launches at 846 units, followed by the Kuching built-up area with 536 units.
Of these, the biggest contributors were The Podium (395 units) at Jalan Keretapi developed by Chen Ling Development, and Mackenzie Avenue (256 units) developed by Lee Onn Construction Company. Units launched range between 800 sf and 1,500 sf in sizes.
High-rise apartments completed in 2018 include d’Belle (67 units) at Jalan Datuk Stephen Yong link, Rex @ BDC (95 units), Block D of Sky Villa @ MJC (128 units) and Block A of Sapphire on the Park (206 units) the flagship high-rise condominium project by Naim Holdings Bhd at Jalan Batu Lintang.
On new supply of high-rise residential units, the report lists out eight projects with a combined 1,478 units.
Besides The Podium (395 units) and Mackenzie Avenue (256 units), the others are GEM Suites (198 units) off Jalan Stutong Baru developed by Sin Hai Ming Development Sdn Bhd; Yarra Park (195 units) at Jalan Batu Kawa developed by Tecktonic & Sons Holdings Sdn Bhd; Urban Residences (136 units) at Jalan Central Timur developed by E-Heritage Sdn Bhd; Stutong Tiarra 2 (Stutong 7 Residences) (130 units) off Jalan Stampin Baru developed by Jyrah Realty Sdn Bhd; Liberty Grove @ Kota Sentosa (Block 10) (96 units) developed by Elica Sdn Bhd and The Fifth Ryegates (72 units) off Jalan Lapangan Terbang developed by Lee Onn.
In Bintulu, the report said supply of high-rise residential homes has increased in the past five years as buyers are more receptive to apartment living.
On the landed residential market in Kuching, WTWY said new launches continued to drop as opposed to the number of strata title apartment units although demand for landed housing remains evident.
“The landed residential market has seen very few new launches with Kuching city proper itself experiencing a dearth in the prime housing areas.
“Most launches in 2018 are in the outer-lying secondary prime areas, which include Taman Berlian Stabil along Jalan Datuk Mohammad Musa, offering 232 units of single-storey low cost plus units and Taman Sejijak Indah, off Jalan Matang-Batu Kawa, with 77 units of terraced houses.
“Riding on their past success with the Tabuan Jaya township and more recently, Tabuan Tranquility, Ibraco kicked start the much-anticipated Northbank project along the Kuching-Samarahan Expressway, with its phase 1 of Nova 72, comprising terraces and semi-detached units, which saw brisk sales,” it added.
According to WTWY, with few new landed residential units especially in prime locations, values of landed properties continue to appreciate between 5 percent and 10 percent annually. Rental, on the other hand, however, continue to stagnate.
“Due to the lack of landed new housing in the market, buyers have sought other alternatives in the lines of high-rise apartments and second-hand landed units.
“However, the eagerness to capture this segment has resulted in a prolific increase in the supply of strata titled residential units which may lead to a supply glut, with dropping occupancies and take up rates/rentals.
“The pent up demand for housing during these few years of uncertainty may see demand strengthening once the market recovers,” added the property consultant.
In Bintulu, the report said demand for residential properties in the industrial town remains stable even as prices of new completed houses rose slightly within the 5 percent range.
“No significant price variation is expected for both terraced and semi-detached (houses) in 2019.
“Developers are seen to be more affable towards developing terraced units. Single-storey terraced houses have been consistently performing well in Bintulu compared to other types of landed residential properties.
“The demand is principally from office and industrial workers. In terms of pricing, RM300,000 to RM400,000 is the preferred market price range.”
In Sibu, the landed residential market is balanced with moderate supply and price stability, according to WTWY.
“Prices of properties in prime areas could still be rising due to limited supply. Affordability would dictate the performance of residential property.
“Generally, prices not exceeding RM350,000 of any type of landed property should enjoy good reception,” it said.
