KUCHING: The property market is currently facing a glut. Sarawak Housing and Real Estate Developers’ Association (Sheda) president Dr Christopher Ngui said the industry may not be going through a recession but is in fact facing an oversupply situation.
He advised developers to be prudent on the types of properties offered in the market.
“It must be something sellable given the current situation and in this case, properties of affordable price range are in high demand,” he said in his speech at Sheda’s Annual Dinner and Excellence Awards 2018 cum 25th Anniversary celebration at the Borneo Convention Centre Kuching (BCCK) here on Friday.
Chief Minister Datuk Patinggi Abang Johari Tun Openg officiated at the function.
Ngui said generally it could be the beginning of a gradual increase in the take-up rate and positive adjustment of the market
Quoting the Federal Ministry of Finance’s Economic Report 2019, he said the construction sector is expected to improve marginally following an increase in new planned supply of affordable homes and industrial segments.
In Sarawak, he said, the demand for residential units is in the region of RM200,000 and below, accounting for nearly 50 percent of the residential market transactions volume.
“It was also observed more than two-thirds of the total residential volume transacted for Sarawak are below the RM300,000 price category, while National Property Information Centre (NAPIC) figures revealed that residential overhang in Sarawak has been on the increasing trend since 2013 from 388 to 1,358 units in 2017 but declined slightly in 2018 Q1 to 1,283 units,” he said.
