Sarawak Records Moderate Growth in 2015

Sarawak Records Moderate Growth in 2015

OVERVIEW

There were 26,375 transactions worth RM6.1 billion, dropped by 4.2% in volume but increased by 12.1% in value. The agricultural sub-sector continued to drive the overall market, contributing 42.4% of total market share, followed by residential (41.7%), commercial (7.3%), development land (6.5%) and industrial (2.1%) subsectors.

Market activity for all sub-sectors was on a downtrend with the exception of the industrial sub-sector which grew by 12%. In terms of value, residential, commercial and agricultural subsectors increased by 3.1%, 33.1% and 40.3% , respectively, whilst industrial and development land recorded otherwise.

Several major transactions were recorded in the review period involving one estate land and three hotels. The year witnessed the transaction of Lidung Baru Estate measuring 8,793 hectares for a consideration of RM506.23 million. In the hotel segment, the hotel transactions involved Merdeka Palace and Suites in Kuching, 101 Hotel and Kemena Hotel in Bintulu.

RESIDENTIAL

Prices of residential property were generally stable across the state with few exception noted in several locations, particularly for terraced units. Single storey terraces in Kuching registered a price increase in established schemes located nearby commercial centers such as Viva City, E-mart Hypermarket Matang Jaya and Metro City.

Similar units in Sibu recorded price escalations due to proximity to the University College of Technology Sarawak, Woodland International School, College Laila Taib and Tun Zaidi Stadium. Likewise, proximity to commercial centers such as BDC Commercial, Bottega Commercial Center (under construction) and Giant Hypermarket as well as Kuching International Airport led to a price increase for double-storey terraces in Kuching.

In Samarahan, houses located close to higher learning institutions such as Universiti Malaysia Sarawak (UNIMAS), Universiti Teknologi MARA (UiTM) and Maktab Perguruan Tun Abdul Razak registered price increase.

In the stratified segment, prices were generally stable with positive movements noted in selected schemes, particularly those served with good accessibility and near commercial centres. As at Q4 2015, the All House Price Index for the state stood at 232.5 points, up by 7.2% points in Q4 2014.

Similarly, the average All House Price as at Q42015 stood at RM391,994 up from RM365,814 in Q42014.

The residential rental market was on a stable trend with an increase noted in selected schemes. Single and double storey low-cost terraces recorded rental increased due to limited availability in the market. A similar upward trend was also seen in those units located in established schemes served with good infrastructures and accessibility.

The primary market recorded 3,736 units launched in 2015, decreased by 16.5% against the previous year (4,475 units). The take-up was low as only 695 units were sold, indicating an overall sales performance of 18.6%. Condominiums and apartments recorded 1,602 units, formed majority of the total new launches.

COMMERCIAL

The shops overhang and unsold situation were less encouraging in the review period. The overhang slightly increased to 232 units worth RM154.95 million, up by 0.9% in volume and 22.1% in value (2014: 230 units worth RM126.93 million).

The office segment recorded an overall occupancy of 94.2% down marginally from 94.4%. The annual takeup rate was more than 53,795 s.m. Two new private office buildings were completed namely Wisma Harn Lee and Menara Rimbunan Hijau, offering a combined space of 16,258 s.m. Both buildings are fully occupied. As at year-end, there were 97 existing office buildings (665,542 s.m.) and two (29,378 s.m.) in the incoming supply.

The shopping complex segment recorded an overall occupancy of 79.8%, increased marginally from 75.1%. The annual take-up was at 121,240 s.m, higher than recorded in the previous year at 74,157 s.m. Two new shopping complexes made its market entrance namely Viva City Megamall and Giant Petra Jaya, offering a combined space of 84,507 s.m. As at year-end, there were 63 existing shopping complex buildings (792,212 s.m.) and four (60,897 s.m.) in the incoming supply.

In the leisure sector, the state witnessed the completion of Plaza Merdeka Hotel and Sentosa Inn, adding another 230 rooms to the market. The overall occupancy of hotels as reported by Tourism Malaysia improved marginally from 55.9% to 56.7%.

2016 OUTLOOK

Moving forward, the property market for the state is expected to sustain. Aside from the Pan Borneo Highway, three other major projects included Samalaju Industrial Park, Mukah Airport and a native land perimeter survey. Among other developments that are expected to drive the state’s property market are:

– Manganese alloy smelting plant in Samalaju Industrial Park owned by Sakura Ferroalloys Sdn Bhd

– The continuous implementation of Darul Hana Project by construction of houses and public facilities in the area

– The extension of Sama Jaya Free Industrial Zone in Kuching

– The newly completed Giant Hypermarket in Petra Jaya

– The newly completed condominium in Tabuan namely Jazz Suites

* This is an excerpt from the NAPIC 2015 Property Market Report.

This article was first published in the iProperty.com Malaysia August 2016 Magazine. Get your copy from selected news stands or view the magazine online for free at www.iproperty.com.my/magazine.  Better yet, order a discounted subscription by putting in your details in the form below!

Share