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16th March, 2009
KOTA KINABALU: Demand for commercial shops and offices as well as the high-end residential property in Sabah has slowed down somewhat because of the global economic downturn.
However, properties with good design and in prime location are still in good demand, according to Sabah Housing and Real Estate Developers Association (SHAREDA) president Datuk Susan Wong Siew Guen. She was speaking at the seminar on ‘Sabah Property Outlook’ held in conjunction with IPEX & Ideal Home Show 2009 at Sabah Trade Centre here.
For example, she said the KK City Waterfront condominium priced at RM400-RM700 per sq ft floor area was selling well because it is in a prime location at the city centre and overlooking the seafront coupled with an innovative building design.
“Overall, the demand for medium-cost residential property is still very promising,” she believed.
This could be seen from the sales of the newly launched Hartamas Height housing project, which consist of 120 units of condominium with prices ranging from RM180,000 to RM300,0000, and within a week 80% of the units has been sold, she said.
Nevertheless, even though Sabah’s economy still looks resilient, the people were adopting a ‘wait and see’ attitude hoping that the property prices would become cheaper next year but who could determine that, she remarked.
In spite of the wait and see attitude, she believed that Sabah’s property was definitely cheaper this year than the next as the property market in Sabah was expected rebound next year.
After the 1997 Asian financial crisis, she said the Malaysian government had taken steps to merge more than 40 banks in Malaysia to become nine major banks. “This explains why our banking sector is so solid and strong,” she said.
Recently, Bank Negara Malaysia (BNM) assistant governor Dato’ Muhd bin Ibrahim had assured the public that the Malaysian banking sector was resilient and there was no liquidity problem.
“With assurance from BNM, we expect the property sector will continue to grow,” she believed.
The Federal government has also taken various positive steps to boost the country’s economy and to cushion the effect of the current crisis.
The recent stimulus package has included creation of more jobs which will become the key driver for the growth of the property market, she said.
The consideration for permanent resident status for high net-worth individuals bringing more than US$2 million for investment in Malaysia will attract more foreign investors to invest in Sabah property, she said.
Besides that, she said Malaysia Property Incorporated (MPI), a government initiative, was set up in 2008 to brand and position Malaysia effectively as an internationally preferred property investment destination and second home destination for both business and retirement under the Malaysia My Second Home (MM2H) programme.
The many attractive places in Sabah have given the state an advantage and huge potentials to attract more foreign investors to buy homes.
“With consistent promotion by the Ministry of Tourism, Culture and Environment and also the Sabah Tourism Borad, we expect more tourists to visit Sabah and in turn draw their interest in investing in Sabah properties,” she said.
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