High Home Prices Not the Cause for Sarawak Property Overhang
The Covid-19 pandemic has caused a delay in the Malaysian property market but in Sarawak, the overhang is still little, standing at 2,100 units of numerous types. Dato Sim Kiang Chiok, chairman of Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch, pointed out that high home prices may not be the aspect causing the overhang but rather poor location, unseemly home type and design.
Dato Sim said in a press statement, “ In Sarawak, we don’t have many (Bumiputera) reserved units forming part of the overhang like in West Malaysia.” He stated that Sarawakians are enjoying Home Ownership Campaign (HOC) and there are about 132 registered properties by 89 developers in Sarawak.
There are about 417 registered properties by 55 developers in Kuching and up to now, there are 417 verified units of such property priced at RM233 million. On the 2021 economic prospect for Sarawak, Dato Sim was optimistic as “Sarawak can’t get as low as March last year during the first Movement Control Order (MCO) period where Sarawak GDP (Gross Domestic Product) dropped by 17.5 percent.”
Download the free Tax Guide: Buy, Rent, Sell Ebook here.
He said, “In Sarawak, we have extra income from the State Sales Tax on petroleum, Pan Borneo Highway and ART (Autonomous Rapid Transit) public transport in Kuching to look forward to. We are very optimistic for Sarawak’s economy and its recovery from this unprecedented pandemic.”