Sarawak, particularly Kuching, witnessed an increasing demand for high-rise apartment and condominium as landed residential homes become more unaffordable for most buyers.
According to CH William Talhar & Wong Sdn Bhd (WTW), the high-rise apartment and condominium sub-sector has even overtaken the landed housing sector in terms of numbers completed over the last two years.
In fact, the number of landed residential launches dropped significantly due to a softer market and as buyers turned into high-rise residential projects which are being launched in great numbers.
Last year alone, developers launched a dozen of new apartment and condominium projects in Kuching, of which 80% are located within the city and the rapidly growing Matang area located the outskirts. WTW expects another 6,500 such units to enter the market in the next few years.
Among these new launches is the Rivervale Condominium project by CMS Property Development Sdn Bhd. Rivervale Condominium is the first high-rise project of the company due to the growing demand for such high-rise units, as landed residential properties are getting too expensive for most buyers.
Aside from being more affordable, apartment and condominium units offer security, facilities and amenities, making them more appealing to the working class and professionals.
The first phase of the Rivervale Condominium project comprises 176 units with prices ranging from RM388,888 to RM802,888. More than 60% of the units have been taken up since its launch in the third quarter of 2015.
Other high-rise residential projects launched last year include the Gala City Residence, LD Legenda, Tropics City, The City Gateway and Ataria Resort. Major property developers such as Naim Holdings Bhd and Ibraco Bhd have also ventured into apartment and condominium projects, both in Bintulu and Kuching.
WTW expects condominium and apartment prices to increase further though not as much as the 10% registered in 2015. With average selling prices hovering at about RM500 psf, condominium studio units went for as high as RM700 to RM900 psf in prime locations.
Commenting on landed residential projects, WTW said new launches were mostly seen in outlying suburban areas, basically prime secondary locations such as Matang, Batu Kawa and along the Kuching-Serian Road given the rising land costs in and around Kuching city.
Double-storey terrace homes continue to dominate the landed residential sector, followed by two-storey semi-detached houses. Prices of housing units in prime locations remain high at over RM550,000 for two-storey terrace units and over RM1 million for semi-detached units. Demand for reasonably priced housing below RM500,000 remained strong last year.
Image: Sourced from cmsproperty.com.my and theborneopost.com
Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email firstname.lastname@example.org