HOT TOPIC | SHAREDA 2014 Property Development Annual Report & Market Outlook 2015
PROPERTY DEVELOPMENTS IN
SANDAKAN
Property development in Sandakan slowed down with a sharp
decrease in units from 1,930 units to 788 units only. Landed residential
developments decreased significantly from a total of five to only three
projects in 2014 with the condominium and apartment, commercial and
industrial sectors each recording two projects each.
PROPERTY DEVELOPMENTS IN THE EAST
COAST (TAWAU & LAHAD DATU)
There was a significant reduction in property development with only four
landed residential developments in Tawau. The selling price for Taman Ming,
a 2-storey terrace house development starts from RM454,100 – RM638,000
and offers a built up area of 1,872 sq. ft. Whereas Taman Jaya, a double
storey terrace development has a price tag of RM385 – 501 psf with a floor
area of 2,047 sf. Bandar Sri Indah Phase 5C and 5D with a built up area of
1,689 sqft and 1,853 sqft respectively fetched a selling price of RM235-349
psf and RM222 -333 psf.
houses with the single storey offering a built up area of 1,111.43 sf, selling
price of RM338,500 while the double storey offers a built up area of 2,020 sf
selling at RM528,800.
Taman Eramas Phase 3 and Phase 4 comprise of double storey terrace
and semi-detached houses with the double storey terrace units selling at
RM332,500 for of 1,260 sf and the semi-detached selling at RM622,250 over
for 1,872 sf.
SUMMARY OF PROPERTY
MARKET IN 2014
As predicted, the year 2014 was not a property friendly year
especially with the impacts of budget 2014 being influential enough
to reduce the supply of properties in Sabah’s real estate industry.
Most developers that launched their projects in 2014 suffered from
a slower s ales pace. The same happened in Peninsular Malaysia, as
85% of 152 developers reported a sales slump!
The real intention of budget 2014 was to curb property prices from
soaring high beyond control. However, the Malaysian house prices
rose 8% in the first quarter of 2014 as compared to 2013 according
to Knight Frank Global House Price Index released in June 2014.
Taman Vista Phase 2, Sandakan
The sense of insecurity in the East Coast region caused by the hijacking
incidents in the Lahad Datu area had spread to Sandakan and affected
the interest of developers to launch more projects. This resulted in a
decrease of GDV from RM477.5 million to RM413 million with various
types of properties recording slow sales.
Landed residential developments included 2-storey semi-detached
housing projects at Taman Nasalim Phase 7B and Phase 7C priced at
RM326 to RM465 psf with a floor area of1,861 sq.ft. Astana Heights
Phase 5, a 2-storey terrace housing development offered a spacious
built up area of 1,639 to 1,798 sqft with a selling price of RM378,000 –
RM579,580. Taman Vista phase 2 also offered landed properties in their
developments with a 2-storey terrace house costing about RM273 psf
with a floor area of 1,272 sqft.
Two apartment products were launched in Sandakan namely Uno
Apartment and Taman Vista Phase 2, both of which are 4-storey walk-up
apartments. An apartment unit at Uno Apartment costs RM196,888 and
above, while anapartment unit at Taman Vista costs RM218,000 and above.
One notable commercial property launched was Sandakan’s Sejati Walk.
It comprised of 340 units of shopping lots with a GDV of RM 150 million
and sizes varying from 230-1,201 sq. ft in floor size for around RM760
– 918 psf.The 12 remaining units were Uno Apartment commercial
shoplots located at the ground floor selling at RM648,888 and above for
a built up area of 1,245 sq. ft.
Several significant industrial developments launched in Sandakan
include Majulah Industrial Centre Phase 1 with a built up area of 2,160
sq.ft. going for RM780,000 and also 3,000 sq.ft. going for RM1,280,000.
Sandakan Sibuga Industrial Centre offers 3 different property types
selling from RM870,000 to RM1,650,000 and with a built up are aranging
from 2,285 sq. ft. to 3,498 sq. ft. Both of these developments will
contribute significantly to the economic growth of Sandakan as it will
create more job opportunities and pull in interested foreign investors.
Taman Sipitang Villa, Sipitang
Taman Muhibbah Jaya Phase 2
The two landed residential properties launched in Lahad Datu were Palm
Heights Phase 2 and Phase 4. Palm Heights Phase2, a double storey terrace
development, with a built area of 2,023 sf sold at RM208 – RM323 psf. As for
Phase 4, a double storey semi detached was sold at RM272 – RM357 psf with
a floor area of 2,250 sf.
Rounding up the list of developments are two commercial projects in Tawau
namely Merotai Jaya comprised of 2-storey commercial shop lots with a price
tag ofRM588, 000 to RM700, 000 for a built up area of 2,400 sq ft. Muhibbah
Square comprise of double storey shoplots selling at RM488,000 for a net
area of 1,176 sq ft.
www.PropertyHunter.com.my
PROPERTY DEVELOPMENTS IN THE
KUDAT DIVISION
Only two developments were launched in the Kota Marudu district but it
has been observed that the Kudat Division will be seeing an increase in new
property launches in the future.
PROPERTY DEVELOPMENTS IN THE
INTERIOR DIVISION
The stringent bank loan assessment policy is the major contributor
to the slower sales performance faced by all developers. The high
rejection rate in end financing application by potential buyers has
eventually caused all buyers to be more cautious in their spending
and desire in property investment.
According to a survey by SHAREDA Property Research Unit, there
is a lower rejection rate on affordable products that costs below
RM250,000 and medium range affordable apartments has a
rejection rate of only 22%. Medium upper range condominiums with
a price range of RM400,000 to RM800,000 faced higher bank loan
rejection rate at 42.35%. Most developers feel the heat as most of
their products are ranged in this category.
For high end condominium, semi-detached landed houses or
bungalow, an even higher rejection rate of 35.14% was recorded. It
can be concluded that the higher the selling price of the products
launched, the higher the bank loan rejection rate will be. The above
findings should form part of the consideration in assessing the
market risks for developers who wish to market high end products in
the near future.
Industrial and stratified developments are still absent from the development
landscape in the interior division of Sabah but commercial and landed
residential developments had remained upbeat albeit lower than the
previous year.
The four landed residential developments launched were Taman Villa Palma
Phase 1 in Keningau, Taman Sipitang Villa in Sipitang, Taman Bukit Indah in
Keningau and Taman Eramas Phase 3 and 4 in Beaufort.
Taman Villa Palma consists of single and double storey terrace houses with a
selling price of RM209,800 and RM259,800 respectively for an intermediate
unit. With a floor area of 1,793 sf averaging RM142 psf, it is still relatively
cheap as the price of land in the interior is cheaper than all other divisions of
Sabah.
Taman Sipitang Villa boasts the most units with 546 units of single storey and
double storey houses selling for RM298 psf and RM342 psf respectively.
Taman Bukit Indah comprises of single and double storey semi-detached
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The only commercial development launched in 2014 was Lumat Centre
Phase 2 in Beaufort which offered 2- and 3-storey commercial shoplots with
a built up area of 2,420 sf and 3,870 sf respectively. The selling price for the
3-storey units was RM730,000 and above and RM630,000 and above for the
2-storey units.
The cooling measures implemented under budget 2014 have failed
to stop property prices from soaring. It had only served to reduce the
supplies in the market which again reinforced SHAREDA’s statement
that the market force cannot be distorted and the only way to reduce
th e property pricing is to increase the supply in the market.
One Marudu Commercial Centre
One Marudu Commercial Centre is a commercial development that
consists of 57 units of 2-and 3-storey shoplots that comes with floor sizes
ranging from 2,400 – 3,600 sqft and selling prices going from RM670,000 –
RM980,000.
The other development is 1 Avenue Square which is a double storey Light
Industrial development. The price tag on a unit starts from RM738,000 –
RM888,000 with a built up area of 2,200 – 2,800 sq ft.
www.PropertyHunter.com.my
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