KUCHING: Sarawak Housing and Real Estate Developers Association (Sheda) predicts that a double-storey terraced house here may cost more than RM1 million over the next five to 10 years – if no changes are made in the planning requirements.
According to Sheda president Joseph Wong, the million-price range could also turn into reality if there are very few affordable houses being built to cater for the middle household group, or the M40 – those with monthly household incomes between RM4,000 and RM8,000.
“Yet just like a middle child, who is largely ignored and left to fend for himself, the M40 group seems to have been left on their own when it comes to owning a home and dealing with skyrocketing property prices, particularly in major cities and towns of Sarawak,” he said at the launch of Sheda’s Property Expo 2017 here yesterday, where Local Government and Housing Minister Datuk Dr Sim Kui Hian was present to represent Chief Minister Datuk Amar Abang Johari Tun Openg.
However Wong said despite the ongoing hurdles, demands for affordable homes remain strong as seen in the PropertyGuru’s ‘Affordability Sentiment Index 2016’, where 40 per cent of respondents were looking at buying affordable houses priced between RM250,000 and RM350,000 per unit.
Adding on, Wong said to overcome this predicament, more initiatives related to affordable housing by both the government and developers must be encouraged.
On this, he said Sheda had proposed to the state government on a number of measures to stabilise housing prices in Sarawak.
“We are patiently waiting for a favourable reply from the Ministry of Resource Planning and Environment,” he said.
Wong also wanted the government to encourage the use of Industrialised Building System (IBS) in affordable housing projects as a means of reducing costs and construction timespan.
IBS is a method where the majority of the components are assembled off-site rather than on-site.
However, Wong noted that IBS had yet to make full emergence in Sarawak as local developers are unwilling to adopt it over the traditional construction methods.
“The government has to encourage both the production and implementation of IBS in Sarawak.
IBS is beyond just project implementation – it is about changing industrial practices and enhancing productivity.
“Sheda urges local private developers to look into IBS adoption not just because of its cost and resource efficiencies, but also for them to be prepared for future changes in the industry.”
Wong said the state’s property market is currently oversaturated, which concentrates on high-end housing but generally neglects the huge target for the M40 group.
“Sheda estimates that about 100,000 houses within the price range of RM250,000 to RM350,000 would be needed in Sarawak to service the M40 group.
“It’s a huge figure to service at that price point currently, but with more modular and IBS system coming into the market, Sheda thinks it is completely feasible to achieve such feat in a cost and time effective manner – if we’re given the same treatment as PR1MA housing developer in Sarawak,” he said.
Wong said Sheda is also looking forward to the fulfilment of the promise made by Abang Johari during Sheda’s courtesy call on him on Feb 8 – that equal treatment is to be given to private developers as like those accorded to developers appointed with PR1MA projects.
He said should these equal treatments be accorded, Sheda members would commit to building 20,000 affordable houses with selling prices between RM250,000 and RM350,000 over the next five years.
“This is equivalent to more than RM6 billion in gross development value (GDV) in the Sarawak property sector, which will not only benefit the middle-income families but also contribute sustainability to Sarawak economy.
“It is therefore with much delight that Sheda welcomes Datuk Amar Abang Johari’s affirmation that all developers in Sarawak would be treated equally,” Wong said.