Friday, December 6, 2013

Sarawak property prices to rise 5-10pc

As reported by the Business Times... if this is true, property prices rise up to 10% annually anyway even without speculative activities. Apparently, construction, material, labour and land costs contributes to the rise just as much as speculators do...

Business Times
SIBU, 3 DECEMBER 2013 - Property prices in Sarawak are expected to go up by five to 10 percent from next year.

Sarawak Housing and Real Estate Development Association (SHEDA) vice-president Datuk Joseph Ting King Sung said this is due to normal factors such as property appreciation and higher construction, material, labour and land costs, rather than pure speculative activities.

He said this after announcing the three-day SHEDA Home and Property Roadshow 2013 from December 6 at Wisma Sanyan, here.

Ting added that it is fortunate there are no additional measures or restrictions on financing, which allows first/second-time buyers access to high financing at a low interest rate.

On the goods and services tax (GST) that will be implemented in April 2015, he believed that it will be a "boon for businesses" as corporate tax will be reduced from 25 per cent to 24 percent, and 20 percent to 19 percent for the small and medium companies in 2016.

"This is positive for the economy as the GST, coupled with tax relief for the middle-income group and reduction in individual income tax rates by one to three percent, will increase disposable income and increase consumption expenditure and spending."

"But overall, I believe the fundamental growth of the property market will have to be supported by population expansion and increased business activities," Ting said.

He hopes that more houses below RM380,000 will be built to meet affordability and growing demand.

On the roadshow, he said: "19 developers from the state and one from Kuala Lumpur has confirmed participation."

He said: "They will showcase properties from residential homes to shophouses, apartments, condominiums and others."

"They will offer perks like special prices, legal fees and gifts. It is going to be an excellent opportunity for buyers/investors to review and make purchases," Ting added.
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