SHAREDA’s Report Shows Market Confidence
Sabah Housing and Real Estate Developers Association (SHAREDA), compiled their findings on Sabah's property market in their 2018 Property Development report. SHAREDA presented the report during a press conference for their Annual General Meeting on 23 March 2019.
We would like to share how Sabah's property development market turned out last year, thanks to the SHAREDA council members who highlighted the topics during their press conference.
The points that we would like to highlight are:
1. Comparison of 2017 and 2018 Properties Launched Gross Development Value (GDV)
2. Effect of the GE14 to Sabah's Gross Domestic Product (GDP) - the "Wait-and-see attitude"
3. Comparison of Sabah's GDV by region; West Coast, Sandakan and Tawau
Comparison of 2017 and 2018 Properties Launched GDV
SHAREDA tabulated the GDV of units launched between 2017 and 2018, comparing them in their report. If we refer to the table below, we can see an increase of GDV for newly launched properties.
Note : Using phone or tablet, tables are best viewed in landscape mode.
The GDV of new projects in Sabah for 2018 reached the third highest ever in Sabah's history with RM 3.4 billion, only surpassed in 2013 (RM7.5 billion) and 2014 (RM3.7 billion).
Effect of the 14th General Election (GE14) to Sabah's GDP
Before 9 May 2018 new-property launch value was RM 0.966 billion. However, after 9 May 2018 the launching value reached RM 2.45 billion, almost 3 times the value before GE14. SHAREDA suggested that this increase may be due to higher confidence towards the new government.
Comparison of Sabah's GDV by region
Further breaking down Sabah's GDV, SHAREDA shows the data by grouping the regions, namely West Coast, Sandakan and Tawau. The circled values below are the GDV accumulated for each region.
The west coast of Sabah commanded a higher distribution of new properties in Sabah, garnering a GDV of RM2.845 billion with total units of 2,503 followed by Sandakan at RM225 million, while Tawau Division reached RM342 million, respectively.
East Coast of Sabah (Sandakan and Tawau)
The east coast of Sabah showed a significant growth of property development in 2018, led by Hap Seng Properties Development Sdn Bhd and Wah Mie Realty Sdn Bhd, compared to the year before.
Recording a significant increase of condominium, apartments and also landed residential projects, Sandakan accumulated RM225 million GDV in 2018, as compared to RM24 million in 2017.
Meanwhile, Tawau recorded an increase of GDV totalling RM342 million in 2018, as compared to RM77 million in 2017. In Tawau, the types of properties that contributed to the growth of their GDV are landed residential and commercial building projects.
West Coast of Sabah
West Coast of Sabah showed an overall increase of GDV in 2018. The west coast accumulated a GDV of RM2.845 billion, equivalent to 2,503 units as compared to a GDV of RM1.422 billion and 2,188 units in 2017.
While the west coast of Sabah had no mixed development projects in 2018, other types of property launches made up for the total with a significant increase amounting to 2,503 units, as compared to 2,188 in 2017.