HOT TOPIC | SHAREDA 2014 Property Development Annual Report & Market Outlook 2015
As a consequence, 2014 showed a significant
decrease in property launches with a total GDV of
RM3.747 billion as compared to the RM7.562 billion
generated in 2013. This is a significant 50% drop
which was recorded in the mixed development,
landed residential, condominium and apartments,
and commercial development sectors which posted
a drop of between 39% and 76% in GDV. One bright
spot in this analysis is the whopping three fold
increase in the industrial development sector.
SHAREDA 2014
Property Development
Factors that contributed to the decline of property
launches in 2014 were the cooling measures which
effectively curbed the buying power of property
investors. The increase in fuel price and electricity
tariff coupled with uncertainties of the impending
implications of GST made property buyers more
cautious with their investments. Spending power of
consumers was also restricted due to stringent loan
assessment procedures which resulted in a high
percentage of applicants, particularly first time home
buyers, failing to get approval for their end financing
which affected the sales performance of each
property product launching.
ANNUAL REPORT & MARKET OUTLOOK 2015
Fresh optimism for a revitalized property market
“
The East Coast that
includes both Tawau
and Lahad Datu
districts fell to third
place with a GDV of
RM341 million
T
he Sabah Housing and Real Estate Development
Association (SHAREDA) released its 2014 Property
Development Annual Report & Market Outlook 2015
on 9 February with the continuing focus on bringing
the most comprehensive information on projects
launched by its members throughout the year. The
report also highlights issues and concerns of the property industry
and SHAREDA’s efforts to address them in collaboration with relevant
government ministries and agencies.
The delay in development plan approval continued
to impede the timely launches of new projects to
capitalize on positive market sentiments w hich were
few and far in between in 2014. Although affecting
the tourism industry more than the property market,
the flight disasters of MH370 and MH17 as well as
kidnappings on the east coast placed a further strain
on safety and security issues in Sabah andhad a
negative impact on investor confidence. The decline
in oil palm prices was also cited as a deterrent factor
in small holders acquiring properties for investment.
This second edition of the annual report follows on the successful
launch of the inaugural issue in 2013 which received encouraging
feedback from its intended target audience namely government
departments, professional bodies, real estate players, SHAREDA
members and its counterparts REHDA in Peninsular Malaysia and
SHEDA in Sarawak.
DISTRIBUTION OF PROPERTY DEVELOPMENTS
The West Coast continued to dominate the overall
number of property launches in Sabah with a
GDV of RM2.622 billion out of RM3.747 billion or
approximately 70%.This is expected as the West
Coast is the epicentre of growth in Sabah. Ranked
second is Sandakan with a GDV of RM413 million
covering most of the property development products
except for mixed development, which was more
obvious in the CBD.
The report will once again analyze the development and distribution
pattern of properties by SHAREDA members throughout the year
and assess the challenges and opportunities that lay ahead in 2015.
Despite a turbulent year with negative sentiment felt in almost
all sectors of the property market, the report has also identified
indicators that point to an optimistic turnaround in the market in
2015 and beyond.
“
SHAREDA President Datuk Francis Goh is confident that the
annual report will continue to play its role as an indispensable
source of reference and guide for those in the industry.
PROPERTY DEVELOPMENT REPORT 2014 – OVERVIEW
The year 2014 got off to a challenging start with new central bank
guidelines and government initiated cooling measures to reign
in property speculation and control housing prices causing some
anxiety in the property market. The onset of GST implementation
in April 2015 further exacerbated the situation and caused many
developers to predictably delay their product launches.
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Datuk Francis Goh
SHAREDA President
The East Coast that includes both Tawau and Lahad
Datu districts fell to third place with a GDV of RM341
million. This obvious decline was largely due to
security concerns stemming from the foreign intrusion
and acts of intimidation inflicted on the area and its
people. Tailing closely in fourth place is the Interior
Division with a GDV of RM282 million. Kudat Division
rounds up the table with a GDV of RM89 million.
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