Sarawak property market stagnant

KUALA LUMPUR (May 4): Sarawak’s property market was stagnant in 2014. The state recorded 27,538 transactions with a total value of RM5.97 billion. Overall volume declined 3% but value increased 6.6%, according to the “Property Market Report 2014” by the National Property Information Centre (Napic).

“Property prices in Sarawak are at an all-time high, which explains the slow market performance. Buyers are also fearful of the Goods and Services Tax,” said director of Rahim and Co Sarawak Donald Lam.

“Tighter loan conditions are also affecting the number of transactions in Sarawak.”

Market activity in all sub-sectors recorded slower movement in 2014. Industrial, agricultural and commercial, development land and residential sub-sectors declined by 6.4%, 5.5%, 2.5%, 1.6% and 0.4% respectively.

In contrast, the overall value of transactions rose. This was led by the industrial land sub-sector (up 24.2%), followed by residential (6.8%), development land (6.5%), agricultural (5.1%) and commercial (2.8%).

For the residential segment, the rental market was generally stable, with increases recorded in choice locations. Rental growth was seen in established schemes with good infrastructure and locations.

Infrastructure development is expected to spark economic growth and demand for property in Sarawak. The federal government has allocated RM500 million for the Pan Borneo Highway that will connect Sarawak with the neighbouring state of Sabah.

  (Source: Napic)