Kuching property market facing a slowdown ahead?

Kuching has always been a favourite city of mine for many years. This is one of the few cities which I always tell my wife that we should come at least yearly. Its clean, the food’s great and everything could be accessed with Kuching city as the base. The only issue would be that my visits are often short and thus I did not have too much time to view properties. Perhaps one of the future trips I should do just that. My Sarawakian friends however told me that I better be very rich because if I do buy, the rental yield may be low or negative. Well, what’s up with Kuching propetty market recently?
As per one article in theborneopost.comtwo main issues are plaguing the Sarawak property market. They are weaker household incomes and higher-than-expected property prices. According to Sarawak Housing and Real Estate Developers Association (Sheda) president Joseph Wong, the new developments being launched are already smaller and more selective because of market sentiment. He shared that, “A research by Institute Rakyat has shown that price of an average home in Sarawak is over nine times more than the annual income of a typical Sarawakian family. This ranks Sarawak under the severly unaffordable category in the Malaysian housing affordability index – even beating metropolitan Kuala Lumpur.”
Wong reiterated that it is important for the state to consider Sheda’s proposal on affordable homes. He said, “Under the scheme, it is proposed that houses with a minimum area of 850 square feet could be built and sold at a maximum selling price of RM250,000.” The scheme however would need some help from the state government. For example, removal of density control for landed properties, adoption of plot ratio density for strata development and removal of mandatory criteria to build low cost homes or SPEKTRA.
kuching-propertySometimes, I do wonder who would benefit with the developers and the state government at disagreements into what should be done to make the properties affordable. Perhaps the market could decide? Some landed property listings from the main property site in East Malaysia, propertyhunter.com.my (Image) Regardless, I am still dropping by Kuching towards end of the year. It’s time for lots of good food and that sweet Pineapple fruit juice. Cheers.
written on 26 Sept 2016
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