BY SULOK TAWIE
KUCHING: Demand for residential property in Sarawak, particularly in urban centres like Kuching and Kota Samarahan, are projected to rise significantly due to the population growth and the rural-urban migration in future.
Sarawak Housing and Real Estate Development Association (SHEDA) adviser Datuk Sim Kian Cheok said that other factors such as the income levels and the availability of financing options will also influence the demand for housing, either boosting or dampening it.
“Housing, like food and clothing, is a basic need,” he said in an interview.
He said, therefore, the demand for residential property, particularly for landed houses and apartments, remain strong.
“Single and double-storey terrace houses are especially popular, and apartments in prime locations also see high demand,” he added.
He said shophouses, however, cater to different market segments and social sectors, adding that location is the key determinant of demands, with well-managed parking spaces and other conveniences playing a crucial role.
Asked if there is a glut in the market, particularly for shophouses, considering that many shophouses in Kuching seem to remain unoccupied, he said shophouses in well-developed areas with ample parking and amenities tend to be well-occupied.
“Conversely, those in less favourable locations, with poor traffic flow and insufficient supporting residential populations or catchment, often remain unoccupied,” he explained.
“There is also some overhang in the residential property market in Sarawak, but it is manageable.
“Slow-moving property is typically in poor locations, have undesirable layouts, or are of the wrong types for the areas,” Sim said.
On the costs of houses and shophouses that have increased significantly over the past few years, he said it is due the geopolitical conflicts such as the Ukraine-Russia war and tensions in the Middle East have indirect effects on the cost of building materials.
“The weakening Malaysian currency and the reduction of fuel subsidies, particularly for diesel, have also contributed to rising costs.
“Additionally, the increase in minimum wages for workers in the private sector has further added to construction costs,” he said.
Sim said the state government has taken measures to reduce or stabilise the current prices of residential property and shophouses.
He said these include mitigating the rising costs that have impacted the housing prices in Sarawak.
“Initiatives include increasing the supply of land for development by constructing more roads and bridges,” he said, adding that the government could further boost land availability by automatically converting land surrounding cities and towns into mixed-zone land, making it more suitable for development.
He said reducing bureaucratic red tape would allow for easier and faster development, from the submission of plans to the physical construction.
“Additionally, reducing utility capital contributions could lower the cost of connecting basic water and electricity services,” he said.
On the private developers’ involvement in the construction of affordable housing and Rumah Spektra Permata projects, Sim said they are required to build affordable houses, such as Spektra Lite and Spektra Medium, if their development exceeds 10 acres for landed developments or four acres for strata developments.
“However, the state government is considering an alternative approach where private developers would pay development levies instead of building affordable houses.
“The government would then use these levies to fund the construction of affordable housing,” he said.
According to SHEDA Kuching branch annual report, 28,408 units of property were transacted in Sarawak in 2023, valued at RM9.23 billion.
For the property transactions by sub-sector, transactions involving residential property accounted 12,089 or 42.6 per cent of the total 28,408 units and valued at RM4.07 billion while transactions involving commercial property accounted for 2,641 units or 9.3 per cent and valued at RM1.54 billion.
Within the Kuching-Samarahan area, 10,080 units were transacted, valued at RM4.4 billion for last year.
For the property transactions by sub-sectors, there were 5,408 units of residential property or 53.7 per cent out of 10,080 were transacted and valued at RM2.01 billion.
The commercial property transactions accounted for 1,066 units or 10.6 per cent and valued at RM0.67 billion.
