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Shareda: High end properties not main focus in Sabah
Published on: Tuesday, November 21, 2017

Kota Kinabalu: High end properties are not the main focus of property development in Sabah despite the rising land cost and difficult business development logistics, said Sabah Housing and Real Estate Developers Association (Shareda) Honorary Secretary General Ar Ronnie Ang.

He said recent high end developments are mainly limited to the exclusive areas like sea shore and city centre in and around Kota Kinabalu.

He said this in response to the announcement of freeze on new RM1 million properties by Second Finance Minister Datuk Johari Abdul Ghani.

"Shareda's annual report in past years states that mid-range properties of below or around RM500,000 have been actively transacted and contributed about 80 per cent of the total sales.

"The association believed that with good state governance practice of the Price Review Committee under Ministry of Local Government and Housing (MLGH), the pricing of all residential properties would have been assessed comprehensively and fairly prior to market launch.

"Similarly, shopping malls are well in place in urban and sub-urban areas which will meet the demand soon as the economy is catching up with no new mall being planned in near future for Kota Kinabalu.

"Hence, Sabah developers are sensitive to market sentiments and lesser project launches in recent years due to stringent borrowing and high rejection by the Bank's Risk Assessment office based in Kuala Lumpur," he said.

At present, there is disparity of fund volume allocation between Sabah and West Malaysia.

Shareda reiterates that it is important for the government through Bank Negara to assist lower and middle income group in Sabah to provide loan for first time home buyers, government servants and home ownership in general.

Meanwhile, Johari was previously reported as saying that the freeze was merely a temporary measure until all the excess supply is cleared and there was a rise in market demand for expensive properties.

He expressed the government's worries that an oversupply of such development would have an adverse effect on the economy and are requesting the developers to focus on the development of affordable homes, especially those priced below RM300,000 per unit.

He said the freeze will be reviewed as soon as demand for luxury homes pick up again.

Johari said there was 48 per cent demand for affordable homes but the supply only met 28 per cent.

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