As Sarawak’s growth expands in tandem with developments spurred by state-wide projects such as the Sarawak Corridor of Renewable Energy (SCORE), its urban areas see equally robust growth on the back of growing population and incoming residents lured by developments in the state.
Nevertheless, in recent years, urban areas and city centres in the state have seen property prices accelerating faster than before.
In addition, ongoing global economic uncertainties, current and upcoming legislations for the properties sector as well as the more-recent fiel price hike created anxiety among investors which in turn affects the property market Malaysia and Sarawak.
Despite that, Sarawak’s residential properties scene still sees encouraging growth reflected via positive demand, particularly in attractive locations in the city centres or urban areas.
CH Williams Talhar Wong & Yeo Sdn Bhd (WTW) in its first half 2013 (1H13) property market review for Sarawak said while the market this year can be seen as rather flat with fewer launches compared with the previous year, properties in prime attractive locations are still in great demand.
Additionally, the ever-rising property prices have seen new residential areas opening up – mostly in secondary locations – these offer cheaper housing alternatives.
WTW further said launches are expected to pick up in the second half of this year on the back of steady continuation of implementation of the government’s Economic Transformation Programmes.
“According to the Valuation & Property Services Department of the Ministry of Finance Malaysia (Napic), 2012 recorded a drop in volume compared with the previous year but noted an increase in value due to higher prices of property in general,” it highlighted.
“Fewer transactions could be expected for 2013 given the tighter financing criteria (based on net income and 70 per cent cap on loan-to-value for third property purchase), rising development costs and higher real property gain tax (RPGT).
“Prices did not systemically drop this year even though transactions slowed down. The wait for a drop in property prices look set to be prolonged as prices of existing properties won’t lag behind developer prices much which have a cost push on prices, especially from higher costs of labour.”
However, WTW noted that prices of high-end properties which have gone beyond their upper threshold were expected to remain flat.
“Despite the cautious market, sellers have displayed holding power and are in no rush to sell, predominantly in the landed property market, as most are still hoping for greater appreciation of their property value,” it highlighted.
Certain areas in Sarawak ear-marked under the regional development plans will experience unprecedented growth due to the implantation of mega projects.
Nearby towns such as Bintulu and Mukah has been pegged to benefit greatly from this, the impetus being demand going up and leaving positive impact on property developments in these areas.
“As Sarawak’s population is still comparatively young and growing, the property market will continue to hold great potential and create opportunities for investors, remarkably so for properties meeting the criteria of being near developed infrastructures and facilities, having strong property conceptual differential (which makes it unique) and sweet in terms of both pricing (more than RM500,000) and size (at least 1,000 square feet),” WTW said.
In its Property Market 2013 report, WTW said even though housing has generally been overshadowed by commercial development activities in 2012, the residential sector remains the mainstay of the property industry.
“However, recent accelerated growth in property prices especially in housing, is a cause for worry that if allowed to continue without some form of control or check, housing affordability is likely to suffer. 2013 will see more activity in the industrial sector with more SCORE and 10th Malaysia Plan projects underway.
“This in turn, will attract more workers, increasing the need for basic properties such as housing and accommodation. At the same time, down-stream activities could trigger further expansion in the office and retail sector,” it added.
Meanwhile, Sarawak Housing and Real Estate Developers Association (Sheda) secretary-general Sim Kiang Chiok shared the same sentiment, underlining the properties market still being strong as demand is still good.
Hence, he noted, the government is looking for solutions to slow down the acceleration of property prices.
“There’s also the tightening of loans and a few more introductions (legislations). The property market might slow down eventually. We hope the government will be able to find the right balance to enable developers to continue to sale and provide houses, and not to be too strict or difficult for developers to supply because there is still a strong demand (for properties),” he added.
To cater to the increasing growth momentum, property developers have ramped up their efforts in providing residential properties that are affordable as well as competitive in terms of design and architecture.
BizHive Weekly takes a look at various current as well as upcoming residential properties across Sarawak and Sabah that will be featured in the Sarawak Builders Expo (Sarbex) Total Living 2013.
Bandar Samariang
Developed by CMS Property Development Sdn Bhd (CMS Property), a subsidiary of Cahya Mata Sarawak Bhd (CMS), Bandar Samariang is set to become North Kuching’s latest residential and commercial beacon.
The new township boasts a myriad of vibrant features such as improved road connectivity between central and South Kuching, the much-anticipated upcoming Sentoria Group Bhd’s water theme park that is set to become Kuching’s latest entertainment hub, Mydin Hypermarket, and more.
Taking into account rising property prices in Kuching city centre, CMS Property has taken the initiative to ensure that residential units at Bandar Samariang are tagged at affordable prices.
Currently, Bandar Samariang is in its first development phase and features residential projects such as Alam Oasis, Cahya Damai, and Cahya Putri with affordable starting prices at RM229,000 onwards for single storey terrace units at Cahya Damai. Bandar Samariang will soon launch new residential properties such as Cahya Suria and its first foray into higher-end residential properties at Lane Park Residences.
Dusun Bayu
Dusun Bayu housing estate, located next to Demak Laut commercial centre along Jalan Bako, is developed by Borneo Development Corporation (Sarawak) Sdn Bhd (BDC) and covers an area of 42 acres with 395 units of terraced and semi-detached houses and 192 apartment units, all of which will be developed in 10 phases.
BDC, which recently launched Phase 6 and 7 of Dusun Bayu, said all residential properties at the project are of the medium cost category and are located on a mixed zone land, with 60 years tenure. Dusun Bayu’s Phase 6 and 7 will feature 104 units of double storey terraced houses, with two different designs being offered, and each with gross floor area of at least 1,600 square feet. In addition, Phase 6 (Ruby) are priced from RM390,000 onwards while Phase 7 (Ivy and Lily) are priced from RM380,000 onwards.
“Development activities in Dusun Bayu will be continuous over the next five to six years as we will continue with the terrace town houses and semi-detached houses in Phase 8 and 9, respectively. Phase 10 will be developed with 96 units of apartments,” said Assistant Minister of Housing and BDC chairman, Abdul Karim Rahman Hamzah.
Genesis Walk
Located at a meeting point between North and South Kuching, Genesis Walk is the latest residential and commercial property project to hit Jalan Batu Kawa-Matang area.
The project comprises of ‘the Parade’ which features 100 units of apartments and 132 commercial units. Within its residential area, the Parade creates a pleasant and conducive environment for its residents with its exclusive rooftop tropical sky garden.
Integrated with its commercial units, the Parade offers potential residents an array of benefits by being just a stone’s throw away from retail outlets, food courts and many more.
Wassion Avenue
Wassion Avenue at Kota Samarahan consists of 352 units of town houses, and 10 units of two storey
shophouses.
Developed by Wah Shen Development Sdn Bhd and contracted by Lee Onn Construction Co (Lee Onn), the project offers a sensible starting point to suburban living by proving a gated and secured residential area as well as a jogging track for its residents.
In addition, Wassion Avenue is located nearby to various amenities which include 7th mile Bazaar, University Malaysia (Unimas), and 17th mile Siburan.
Bellina Green
Bellina Green is located along Jalan Muara Tuang and covers approximately 90 acres, says real estate marketer Kozin Real Estate (Kozin).
There are 205 units of three-storey shop offices and 440 two-storey homes at the Bellina Green development, all of which is expected to be completed by the end of
2014.
Currently, the 49 units of shop offices (Phase 1 and 2) at Bellina Green are now open for sale.
The Park Residence
The Park Residence, nestled in Greater Tabuan, is conveniently accessible to everyday amenities such as schools and universities, banks, shopping malls, dining centres and more to complete a modern living experience.
Developed by Ibraco Bhd (Ibraco), The Park Residences consists of 10 and five storey condominiums, with 90 and 88 units respecitively.
A unique feature The Park Residence offers is the ‘live in park’ concept which is presented via its unique green settings and a selection of tropical plants to complete its lush natural
landscape.
Additionally, along with 24-7 security system, The Park Residence is accommodated with facilities such as indoor games room, guest rooms, private storage room, open multipurpose, function lounge, and a single storey club house located on the ground level complete with gymnasium overlooking the central green and swimming pool.
Jazz Suites at Vivacity
Located at a prime location in Kuching city at Jalan Wan Alwi, Tabuan Jaya, Vivacity Megamall synergises both commercial and residential properties with the development of exclusive condominium units at Jazz Suites above the megamall.
Developed by Coramax Sdn Bhd (Coramax), upon completion, Vivacity Megamall will be the largest premium shopping mall in Sarawak. Jazz Suites project hosts 672 condominium units, of which Coramax will launch Jazz 4, the last block that consists of 176 units of two to three-bedroom condominium in October.
Jazz Suites offers an exclusive lifestyle concept for potential residents whereby they will be able to relax and enjoy a long list of facilities ranging from a fun pool, lap pool, gym, meeting facilities, steam room, landscaped garden to a jazz bar.
Coramax assistant manager Alan Chan highlighted, “Coramax is not just selling a house, it is selling a concept. Jazz Suites has so far received an overwhelming response and expect the unit to be sold out by the middle of the year.”
Bintulu Paragon
Bintulu Paragon is set to add vibrancy to booming Bintulu town, following the rapid expansion brought by the SCORE to the town.
Developed by Naim Holdings Bhd’s (Naim) subsidiary, Naim Land Sdn Bhd (Naim Land), Bintulu Paragon is sited on a prime location beside the proposed Bintulu Boulevard on the south and a major roundabout on the east side of Bintulu. Bintulu Paragon is also slated to become a one-stop commercial and residential hub for Bintulu as it integrates residential, business, retail and hospitality. The property’s first phase would include a business hotel, condominiums, shop office versatile office (Sovo) suites, and a three-storey street mall.
“As an integrated development, this means that we are going to develop different components and properties within Bintulu Paragon,” chief operating officer of property investment and Real Estate Investment Trust (REIT) Yong Kei Seng said.
Aeropod
Aeropod, a mixed development anchored by the railway hub of Kota Kinabalu, is set to become a new landmark to the capital city of Sabah.
Pegged as one of SP Setia Bhd’s (SP Setia) maiden project in East Malaysia, Aeropod spans across approximately 60 acres of prime area land in Kota Kinabalu. The project features boutique retail/offices, small office versatile office (SOVO), retail lots, a shopping and entertainment mall, food and beverage, high-rise residential towers, and hotels. In line with Sabah’s vision of making Kota Kinabalu a global city, SP Setia has already set forth plans to make this project on par with the international standard.
Aeropod is envisioned to be a 24-7 urban pod that embraces SP Setia’s development philosophy of LiveLearnWorkPlay and is expected to be a tourist attraction because of its connectivity as a railway hub and proximity to the international airport.
The Tropics
Regal Group has recently unveiled that limited exclusive units at the final and newly developed condominium block (Block E) of The Tropics Condominium (The Tropics) that are now open for sales.
The new block consists of 32 units of the four storey block with a built up area is between 1,500 and 1,600 square feet for the entire
block.
The Tropics, which consists of deluxe condominium units as well as stylish penthouse units, offers peace and tranquillity for potential residences by enveloping a tropical oasis theme in the busy heart of Kuching city.
Located at a prime area along Jalan Song, The Tropics is nearby education hubs and various commercial facilities such as 101 Commercial Centre, CityONE Megamall, King Centre, tHe Spring shopping mall and many more.
The condominium also boasts several amenities such as high speed Internet access, sheltered car parks, fully-sheltered walk paths, a recycle centre, library and business centre.
Bullish property scene in Sarawak
From a property developer’s point of view, Cahya Mata Sarawak Bhd (CMS) parent company of CMS Property Development Sdn Bhd (CMS Property) retained a bullish view on the prospects of Sarawak as a whole, especially in terms of population growth, organisation, and job creation driven by SCORE.
CMS Group managing director Dato’ Richard Curtis underlined that Sarawak is in a phenomenal position.
“It is currently in its early stages but it is currently showing signs of accelerating,” he commented.
This view was further shared by property developer Chong Kia Hoi Realty Sdn Bhd (CKH Realty) managing director Chong Kia Hoi who was quoted as saying, “The property market in Sarawak is very buoyant at the moment. The SCORE project is gaining momentum and has seen our state attract the most foreign investment in Malaysia of about RM3.75 billion.”
Ibraco Bhd (Ibraco) viewed that the overall market sentiment is softening due to the uncertainties in the global economy and tightening of Bank Negara Malaysia’s guideline.
It added that purchasers have also been adopting the ‘wait and see’ approach in view of the upcoming budget announcement.
On the hike of property prices, Ibraco noted that it merely reflects the increase in building material and scarcity of prime land.
“The property price is expected to grow moderately going forward. In view of the scarcity of prime land, where prices of landed properties have increased substantially over the years, consumers tend to opt for high-rise residential apartments with affordable price coupled with better security and various amenities at their door step,” it
added.
A platform for developers and buyers
All these movements in the residential property sector paved the way for Sarawak Builders Expo (Sarbex) to be a platform for developers to highlight Sarawak’s property scene.
Since its inception 15 years ago, Sarbex has built a reputation for being the one stop centre for potential buyers and developers, roping in major developments in and out of Sarawak.
Themed as Total Living 2013 Property & Home Exhibition and organised by Sarawak Housing and Real Estate Developers’ Association (Sheda) with the support of the Ministry of Housing Sarawak and Construction Industry Development Board Malaysia this year, Sarbex is set to attract about 120 booths from East Malaysia, Peninsular Malaysia and overseas.
Sarbex was formed in 1998 with the objective of gathering housing and property developers, manufacturers and suppliers of building materials, home and lifestyle furnishing, bankers and other related services under one roof.
According to Sheda, the idea was conceived to help bolster the property sector during the economic downturn in late 1990s. Since then, Sarbex had received and continued to receive overwhelming response from housing developers and the general public.
The expo has turned into an avenue and marketing tool for the exhibitors as well as prospective house buyers in finding their dream homes.
“Sarbex 2013 is a must for buyers and visitors who want to take advantage of the special offers available during the exhibition or just to source for the information on type, style and locality of housing available in the local market or in Peninsular Malaysia or overseas,” Sheda secretary general Sim Kiang Cheok said.
The expo will also offer quality consumer/retail level investment products and other alternative investment opportunities and an excellent opportunity to see the high quality showcases of brands, new technologies and home products and appliances.
Generally, Sheda’s aims and objectives are to provide a forum for companies engaged in property development. Sheda’s strives to raise the standard of the industry, establish a code of conduct and ethics, and promote goodwill among members of its association.
This year, Sheda hopes that Sarbex 2013 will be able to provide a convenient place for the public to seek information on properties. The association also noted that Sarbex 2013 is also a chance for the developers to update themselves among the members.
“We want our developers and members to give the buying market competitive products that they treasure and protect,” Sim
enthused.