Sarawak residential property sector stable

0
Take up rates of new housing in Kuching seemed to have slowed down further in 2014 but market transaction activities, including secondary market, remained generally stable. — Photo by Chimon Upon

Take up rates of new housing in Kuching seemed to have slowed down further in 2014 but market transaction activities, including secondary market, remained generally stable. — Photo by Chimon Upon

Prices expected to continue upward trend but at slower rate

KUCHING: Sarawak’s residential sector remained stable with steady transaction volume whilst property prices continued to be on the uptrend with prime properties having gone up substantially, C H Williams Talhar and Wong (WTW) said in its 2015 Property Report.

According to WTW, in Kuching, take up rates of new housing seemed to have slowed down further in 2014 but market transaction activities, including secondary market, remained generally stable.

For 2015, it expected the market to reflect a similar scenario with slow-down in sales volume in view of further costs/price inflation and the implementation of goods and services tax (GST).

“Nonetheless, prices are anticipated to still go up, albeit at a lesser rate,” it highlighted.

On the performance of Kuching’s residential property market, it explained, first time home buyers are finding it increasingly difficult to own a home at the current market pricing and tendency to buy houses that are much further away from the city centre and hence, place of employment, due to affordability issues.

“Affordable houses are generally below RM400,000 and these are either located in secondary areas or are not suitable types.

“Prices for semi-detached houses have breached the RM1.5 million figure due to the increase in land and construction costs, and this is especially telling for Sarawak as it has a lower density development guidelines compared to its other counterparts in Malaysia,” it said.

In the long run, WTW noted, a review of the development density to allow for more affordable homes in the market would be welcomed.

The occupancy and/or take up rates of housing remained stable whilst rentals remained more or less unchanged from the year before.

“Compared to 2013, the residential sector in 2014 was more subdued with significantly less launches and completions, probably also because of the shift to strata-titled residential units, which has been significant in numbers.

“Except for continuing phases of some major developments such as Central Villa, Malihah Jaya and Bandar Samariang, most of the developments are piece-meal and small, comprising less than 50 units per project,” WTW said.

As for new launches, it noted, launches were more active in the outlying suburban areas, such as prime secondary areas in Matang, Batu Kawa and Jalan Muara Tuang.

This was mainly in the effort to maintain affordability of the homes.

Terraced houses, especially double-storey terraced units, continued to be the mainstay of the landed residential sector followed by semi-detached types, it added.

Meanwhile, in Bintulu, WTW reported that the first half of the year observed delays in new launches as well as the reduction of sales targets by developers due to the stringent lending rules from Bank Negara Malaysia (BNM).

“However, it is expected that Bintulu will continue to benefit from the Sarawak Corridor of Renewable Energy (SCORE) corridor which will bring in expatriates as well as migrant workers to boost the demand for the residential units,” it said.

As for Miri, WTW highlighted the launch of South Lake Permyjaya, an upmarket residential development by Naim Land Sdn Bhd.

“The development is a 450-acre enclave with a total of 12 precincts comprising residential and commercial based components.

“At present, two components have been launched which are 160 terraced units in its Willow Moss Precinct and 28 semi-detached homes in its River View Precinct, which are to be completed by 2016.

“The entire development is slated for completion by 2022,” it added.

Meanwhile, on the condominium sector in Sarawak, WTW highlighted that in Kuching, the sector continues to outshine the rest of the sectors with 1,000 plus units being completed in 2014 and another 5,000 or so units either under construction or undergoing earthworks, which would essentially increase supply by another 50 per cent in the next two years.

“Prices for condominium units continue to record increases of between 10 and 15 per cent for the year, with prices as high as RM700 per square feet (psf) or units at the Sapphire and Lagenda.

“Take up rates of apartments generally remained steady between 50 and 70 per cent within a year of launch and even higher sales for more affordable apartment units of below RM400 psf, such as those in the Stutong area which were all snapped up within a month of sales,” it noted.

In Bintulu, the condominium sector is showing signs of rising with improvement in demand with new launches offering various concepts and unit sizes to suit the market needs, WTW said.

In 2014, Sibu has also witnessed several new launches which are strata titled apartments.

“Among the launches, Waterfront Residence is offering units with 180 degree panoramic view of the famous Rajang and Igan Rivers. Upon completion, this skycraper coupled with the upgraded town square will redefine the skyline of Sibu town centre,” it added.

“The condominium sector is expected to continue to enjoy good take up rates as well as command an increase in prices in 2015,” WTW viewed.