Property Hunter Magazine Property Hunter Magazine Issue 55 - June 2014 | Page 12

/// Feature Property Event East Coast of Sabah Property Sales Dropped in Excess of 50% in Q2 2014 P roperty developers are starting to feel the crunch brought on by various cooling measures that were announced in the 2014 budget. It was a knee-jerk effect that brought Sabah’s property market’s uptrend to a standstill with developers and buyers adopting a wait and see attitude as to how far the implications will affect the market. As anticipated, the first half of 2014 was a testing time with many property developers holding back on their sales targets. Sales figures from the recent SHAREDA PH Expo 2014 in Sandakan (11 – 13 April) and Tawau (16 – 18 May) reflected this downturn with a significant drop in figures compared to last year. 12 www.PropertyHunter.com.my According to director of Property Hunter, Michael Hiew, despite a 30% increase in developer participation, SHAREDA PH Expo Sandakan posted a significant drop of 56% in property sales from RM43.5 million in 2013 to RM18.9 in 2014. Visitor numbers mirrored the weakened sales figures with a drop of 53.1% from last year. Hiew commented, “Although the company had increased its advertising and promotion budget by 20% for both exhibitions over last year’s spending in anticipation of a higher turnout, numbers has declined.” SHAREDA PH Expo Tawau fared slightly better with a drop of 44% in sales figure from RM79 million in 2013 to RM43.8 million this year. Property developers continued to show strong support with a 19% increase in number of exhibitors from 25 in 2013 to 31 exhibitors. Visitor numbers however experienced a slight 20% drop. Hiew also revealed from the random market sentiment survey conducted by Property Hunter during the exhibition, “The major factors in the turnout rate and transaction figures decline was due to homebuyers and investors inability to obtain loan approval with reasonable margins, harsh Bank Negara lending policies and the rapid rise of property prices in which many could not keep up.” The in