Market Property Sarawak Feature Review SHEDA Article: 2019 COMMUNIQUE March-May 2020 PPK 462/05/2015 (034189) T N 02 Sarawak Property Market Review 2019 09 Malaysia Key Economic and Financial Statistics E 11 COVID-19 Pandemic ✦ SHEDA’s appeal to Sarawak and Federal Government T COVID-19 Pandemic- Special Incentive EDITORIAL 13 Package Chairman Gary Kho (Editor) Vice Chairman Alan Wong Members Peter Lau ✦ Sarawak Government- Bantuan Khas Iskandar Sharkawi Sarawakku Sayang Yap Min Su Peter Pau PUBLISHER ✦ Malaysia Relief Measures- Prihatin SARAWAK HOUSING AND REAL ESTATE DEVELOPERS’ ASSOCIATION Package Sub-Lot 42, 2nd Floor, Tabuan Stutong N Commercial Centre, Jalan Setia Raja, 93350 Kuching. 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With the exception of SHEDA members C and their departments, no part of this publication may be distributed, recirculated, reproduced, stored in a retrieval system or transmitted in any form by any means, without prior written permission from the Editorial. 1 Sarawak Property Market 2019 Overview Number and Value of Property Transactions in Sarawak (2015-2019) Based on National Property Information Centre (NAPIC) 2019 report, Sarawak property market performance stabled in the review period. The market activity recorded 23,465 transactions worth RM6.79 billion, a marginal decline of 0.8% in volume. Nevertheless, the value of transactions saw a marginal increase of 2.0% as compared to 2018 (23,662 transactions worth RM6.65 billion). Residential sub-sector remained the leading sub-sector, dominating 42.3% of the volume transactions, followed by the agriculture (39.3%), development land (8.4%), commercial (8.1%), and industrial (2.0%) sub-sectors. Market activity was on upward trend in all sub-sectors except for development land (-12.0%) and agriculture (-4.8%). Industrial sub-sector expanded by 23.1%, followed by residential sub-sector 4.0% and commercial 3.5%. In term of value, all sub-sectors recorded upward trend except for agriculture and development land sub-sections which recorded otherwise. Number of Property Transactions in Value of Property Transactions in Sarawak (2015-2019) Sarawak (2015-2019) 28000 12000 7000 3000 2500 9000 ) ) . n o ) ) o . i l N n l o 26000 ( 6500 2000 i o i N l n l m ( i o i n t m M c o i R t a M ( c s R a e 6000 n 1500 ( s u a l r n e a T a u l V r l a l T a i V a l r i l r a o t t a 24000 6000 1000 o t o t c o T c e T e S 3000 S 500 22000 0 5500 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Total No. of Transaction 26375 23347 22605 23662 23463 Total Value of Transaction 6699.15 5848.59 6191.20 6651.42 6786.80 Residential 10993 10068 9620 9532 9914 Residential 2459.30 2346.61 2482.24 2663.18 2808.27 Commercial 1914 1671 1567 1830 1894 Commercial 1084.61 670.53 702.74 941.01 986.41 Industrial 560 440 398 385 474 Industrial 344.55 509.19 378.73 378.73 502.95 Agricultural 11170 9637 9098 9679 9214 Agricultural 1867.38 1467.91 1606.76 1181.26 1161.19 Development Land 1727 1530 1921 2233 1966 Development Land 941.71 852.05 1017.97 1484.84 1327.15 Contribution to Transaction Volume Contribution to Transaction Value by by Sub-sector 2019 Sub-sector 2019 Development land & Others Industrial 8% 2% Development land & Others Commercial 20% 8% Residential Residential Industrial 41% 42% 7% Commercial Agriculture 14% 39% Agriculture 17% Source: NAPIC Property Report 2019 2 Sarawak Property Market 2019 Residential Property Volume and Value of Property Transactions (2015-2019) The residential sub-sector’s market performance improved in the review period. There were 9,914 transactions worth RM2.81 billion, an increase of 4.0% and 5.4% in volume and value respectively in comparison to 2018 (9,532 transactions worth RM2.66 billion). Terraced houses dominated 45.7% of the total residential transactions. Volume of Residential Property Transactions 2015-2019 Value of Residential Property Transactions 2015-2019 11000 2900 2800 5.4 10500 -8.4 ) 2700 n ) o i l s l t i i n m U ( 2600 M 10000 7.3 e R ( m e u -4.4 l u l o 4.0 a V 2500 -0.9 V 9500 5.8 2400 -4.6 2300 9000 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Volume of Residential Value of Residential Property Transaction 10993 10068 9620 9532 9914 Property Transaction 2459.30 2346.61 2482.24 2663.18 2808.27 % Change -1.70 -8.40 -4.40 -0.90 4.00 % Change 3.10 -4.60 5.80 7.30 5.40 Residential Property Construction Activity Trend 2015-2019 10000 800 0 600 0 s t i n U 400 0 2000 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 Completion 3672 7628 7402 6944 5019 Start 6442 7406 9394 7418 5211 New Planned Supply 3793 2062 5912 6770 4217 Construction activities recorded less active movement with 5019 completed residential properties units, another 5,211 units in the incoming supply and 4,217 units in the planned supply. Source: NAPIC Property Report 2019 3 Sarawak Property Market 2019 Residential Property New Launches Trend (2015-2019) 4000 3000 s t i 2000 n U 1000 0 2015 2016 2017 2018 2019 2015 2016 2017 2018 2019 The Primary market in 2019 decreased by 3.3% as compared to 2018. Unit 3736 2599 2669 2429 2349 However, the overall sales performance was better in 2019 as Launches compared to 2018. Most of these units were apartments/ Sales 695 392 851 612 789 Performance condominiums, dominating 36.6% (859 units) of the total. Number of Residential Property Transaction by Value of Residential Property Transaction by Price Range in Sarawak 2019 Price Range in Sarawak 2019 5000 1000 4000 800 ) 3000 n 600 o i l l i s M t i n M U R ( e u 2000 l 400 a V 1000 200 0 0 k k k k k k 0 0 0 M M 0 0 0 M M 0 0 0 1 1 0 0 0 1 1 2 3 5 M M 2 3 5 M M M M M R R M M M R R R R R ≤ > R R R ≤ > < ≤ ≤ k < ≤ ≤ k k k 0 k k 0 0 0 0 0 0 0 0 0 5 0 0 5 2 3 M 2 3 M M M R M M R R R > R R > > > > > <RM200k >RM200k≤RM300k >RM300k≤RM500k >RM500k≤RM1M >RM1M <RM200k >RM200k≤RM300k >RM300k≤RM500k >RM500k≤RM1M >RM1M RM Units 4204 2249 2454 881 126 490.38 566.19 967.94 573.39 210.37 Million The above transaction bar chart illustrated that the lower price range has higher demand than higher price range as there are more buyers in B40 and M40 group. As for higher price range housing, developers are advised to be cautious in the supply to their targeted market because of limited demand. Source: NAPIC Property Report 2019 4 Sarawak Property Market 2019 Residential Property Number of Residential Transactions by Type and District in Sarawak 2019 900 800 700 600 500 s t i n U 400 300 200 100 0 t e e D h t r e t e t lo c c i- i- c p te s la s la P ra a a A s u F u F t r rr m m t / u o o n e e e e e o l H C T T S S D d C H L ca n n C a S S S S o w L V S D S D C o D T Vacant SS Terrace DS Terrace SS Semi-D DS Semi-D Detach Condo/Apt Cluster Town Flat LC House Plot House Kuching 448 675 878 171 505 539 265 28 20 131 177 Samarahan 15 41 46 8 22 20 0 0 0 0 9 Total number of residential properties transaction by type Sibu 28 30 22 1 7 14 0 0 0 4 5 in five major districts in Sarawak recorded 6,489 units. The bar chart indicates Terrace has the highest Bintulu 62 178 133 25 22 60 1 1 3 42 52 transaction rate, followed by Semi-D, Detached and Miri 149 177 811 13 415 121 23 0 49 0 43 Vacant Plot. TOTAL 702 1,101 1,890 218 971 754 289 29 72 177 286 Value of Residential Transactions by Type and District in Sarawak 2019 300 250 200 ) n o i l l i 150 M ( M R 100 50 0 t e e h t r t e t o c c i- -D c p e e la s la l a a i t s u F P rr r m m ta /A s u F o t e r e e e o lu o C n T Te S S D d C H H L ca n n C a S S S S o w L V S D S D o D C T Vacant SS Terrace DS Terrace SS Semi-D DS Semi-D Detach Condo/Apt Cluster Town Flat LC House Plot House Kuching 130 145.02 266.73 44.56 232.89 254.95 107.22 7.21 8.15 14.96 27.93 Total transaction value of residential property in 5 major districts in Sarawak was RM1,888.46M.