Buyers undeterred by 10 pct increase in house prices

February 18, 2012

KUCHING: Prospective house buyers in Kuching are not hindered by the 10 per cent hike in house prices as reflected by the rise in demand and execution of projects since 2011.

As more new families are set up, the demand for medium cost house is steadily increasing, especially at fringes of the city where prices dip slightly.

Housing Assistant Minister Abdul Karim Rahman Hamzah said the housing industry was market-driven and sales based on the locality of the project.

He was officiating at the launch of Sarawak Housing and Real Estate Developers Association (Sheda) Home and Property Road Show at Boulevard Shopping Mall yesterday.

He said prices of medium cost houses this year were expected to stabilise and only show a slight rise.

“If the demand and spending power of the consumers are strong, there will definitely be an increase in price of houses,” said Karim who is also Asajaya assemblyman.

Besides supply and demand, the hike in price was affected by the price of construction materials such as cement, bricks and steel.

He said the ministry was constantly overseeing the prices of houses and would come up with a formula to stabilise prices through the government’s capital contribution, such as water and electricity.

Karim said there were at least one or two projects which stalled due to the developer’s lacklustre sales and marketing or poor financial management.

“That is the common cause for abandoned projects; it’s definitely not caused by poor demand from prospective house buyers,” said Karim.

He said low-cost housing projects run by government agencies were not spared from being abandoned, such as those in Limbang and Pusa, but the ministry was looking into the matter.

Meanwhile, the annual roadshow which began yesterday and ends this Sunday is the first pitstop before continuing to Sibu, Bintulu and Miri.

Among the exhibitors at the Kuching roadshow are Tedfar Realty Sdn Bhd, Zuragaya Sdn Bhd, SHM Develoment Sdn Bhd, Kuwait Finance House (Malaysia) Bhd, Borneo Development Corporation (Sarawak) Sdn Bhd, ME Publications Sdn Bhd, Tenaga Seri Wangsa Sdn Bhd, Oximas Sdn Bhd, Khidmat Mantap Sdn Bhd, Maybank Bhd, Hock Seng Lee Construction Sdn Bhd, Petra Jaya Properties Sdn Bhd, ICT Zone Ventures Bhd, RB Development Sdn Bhd, CMS Property Development Sdn Bhd and MJC City Development Sdn Bhd.