From the Desk of Head of Law Firm
In recent years Kuching has experienced a sudden surge in property market and has shown no sign of stopping and according to many observers, the general residential property market sentiment in Kuching is that the current prices are at “an-all-time high”.
According to a property consultant firm, it is observed that the first decade of the 21st century saw Sarawak’s home prices increasing rapidly and this had surpassed the overall average Malaysia house index. The National Property Information Centre (NAPIC) statistics show that 16,818 units of various residential home types were under construction in Sarawak in the first quarter of 2012. It is observed that some 10,548 or around 63 % of these were in Kuching and Kota Samarahan divisions. It has also been observed in the same period, Kuching and Samarahan divisions also housed 2,498 out of 4,418 units launched, which translates more than 55 %. A property market report by a property firm noted that in Kuching prices of residential properties had increased between 10% – 20% across the board in 2011.
Samarahan area is a hot property area at this moment because it houses University Malaysia Sarawak (UNIMAS) as well as Universiti Teknologi MARA(UiTM) Sarawak Campus.
Standard double-storey intermediate terraced houses now easily command prices between RM350,000 and RM400,000 says WTW in its report Sarawak Property Market Review 2011. The sudden surge in prices is said are due to high labour costs and materials. Decreasing supply in urban land and rising demands of urban residential properties caused by rural to urban migration also contributes to steady rise of prices of residential properties.
In a recent property fair in Kuching, it is observed that a developer had reduced the prices of its double story semi-detached house by about RM20,000.00 in Samarahan area and is it a sign that prices of residential property is to fall soon? We are studying the market closely as few new commercial areas will crop up very soon. A huge piece of land at Simpang Tiga next to the Federal Complex and Kenyalang Park Post Office has been cleared for development. Kenbest is going to develop the piece of land just opposite to 101 at Jalan Tun Jugah, Kuching. Another piece of land next to a Chinese primary school at Jalan Tun Jugah and on the way to airport near to BDC Kuching has also been cleared and will see huge development there soon. It is said a prime city land just next to Everrise Supermarket in BDC Kuching will see a major facelift soon this year 2013.
A chartered surveyor who wished to remain anonymous cautioned that the recent uptrend of residential property prices may not persist and said, “I think there could be a turning point somewhere.” He advised to invest with caution because prices are at all-time high. The question is whether today’s prices are sustainable or not.”
With banks exercising caution in lending borrowers, it will become more difficult for young couples to acquire property without help from their families.
However, with active transactions in property market, our law firm has to catch up with the demands of market and we presently is restructuring and expanding our conveyancing department to cater the needs of our clients.
