Dato Sim Kiang Chiok
KUCHING: Sarawak’s property overall overhang is declining, with residential transactions improving in the first quarter of 2022 (1Q22), Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman Dato Sim Kiang Chiok highlighted.
In a statement, he pointed out that overall, Sarawak experienced an increase of 12.7 per cent in residential transaction in 1Q22 as compared to 1Q21.
Strata properties experienced a surge in demand as there was 178.6 per cent increase in transaction for townhouse while condominium and apartments had 31.3 per cent increase from 134 units in 1Q21 to 176 units in 1Q22.
However, he noted that landed units are limited because of higher land costs in urban/city areas. Higher density for strata properties has made strata units cheaper and more affordable.
Meanwhile, National Property Information Centre (NAPIC) also reported that Sarawak had experienced a 21.3 per cent decrease in overall overhang in 1Q22 as compared to 1Q21. The 2,191 units of residential overhang in Sarawak is six per cent of the national residential overhang of 35,592 units.
“Sarawak could also be experiencing less overhang due to the success of the Home Ownership Campaign (HOC) which ended on December 31, 2021. HOC participating property developers had to give 10 per cent discount to purchasers and purchasers were incentivised to purchase due to stamp duty exemption offered by the federal government,” he said.
“With the Sarawk Government’s First Home Grant of RM10,000, the opening of land due to more roads being constructed under the various integrated development agencies, improve utilities supply, we can foresee more land will come into the supply.
“Demand of house is still strong with the reduction of overhang of houses, the bank are still supportive of end-financing loans,” he added.
Aside from that, Sim, who is also Sarawak United People’s Party (SUPP) Stakan chairman, highlighted that based on the latest NAPIC report, Sarawak’s average house prices in 1Q22 stands at RM365,712, making it the sixth in Malaysia with the most expensive house.
“This is an improvement from the 1Q21 preliminary report that indicated that Sarawak ranks third in Malaysia with most expensive home at an average house price of RM482,592.
“The most expensive average house price is in Kuala Lumpur at RM765,391 followed by Selangor at RM518,117.
Penang has the third most expensive house at an average of RM396,832, while Johor and Sabah took fourth and fifth place at RM378,355 and RM367,888 respectively. The average house prices in all other states in Malaysia are valued below RM300,000,” he said.
However, he cautioned that demand of houses could be hampered by the cost of construction which have been affected by the increase of minimum wages, increase in logistic cost, low exchange rate of the ringgit, the Ukraine/Russian war disruption to supply of global food, and increase in price of oil and gas with foreseeable increase of interest rates.
Sarawak’s average house prices in 1Q22 stands at RM365,712, making it the sixth in Malaysia with the most expensive house which is an improvement from the 1Q21 preliminary report that indicated that Sarawak ranks third in Malaysia with most expensive home at an average house price of RM482,592, Sim says. — Photo by Chimon Upon