KOTA KINABALU: A significant drop in new property launches has been recorded in Sabah this year when compared to last year, according to Sabah Housing and Real Estate Developers Association (Shareda).
Last year, a total of RM5.8 billion worth of properties were launched up until August, but this year, only RM2 billion worth of properties have been launched so far which represents a decline of some 60 percent , Shareda president Francis Goh Fah Shun told a press conference held here yesterday.
Goh said the impending imposition of the Goods and Services Tax (GST) is among the reasons for the significant drop, and he foresees that property buyers can expect a hike of between four percent and six percent in property prices once the GST comes into force next April.
“Developers will be taking into account the six percent GST and incorporate that into the selling price of the properties.
“It is a cost that will impact on the selling price by about four to six percent. The cost of building materials will also definitely go up, hence the price of properties will be expected to go up as well,” he said.
Goh said that lately, many developers have developed a ‘wait and see attitude’.
“Some, like me, are treating the Shareda Property Exhibition (PropEX) as the best venue to showcase their development projects. They wait for PropEX to launch (their properties),” he said.
Also having an effect on the drop of new property launches is the high rate of loan rejections by Bank Negara, he said.
The annual Shareda Property Exhibition (PropEX) will be held at the Sabah Trade Centre from August 29 to September 1 and is expected to be launched by the Chief Minister, Datuk Seri Musa Haji Aman. Also attending the event would be the Local Government and Housing minister, Datuk Hajiji Haji Noor.
Goh explained that the theme for this year’s Shareda PropEX14 was MyHome and is calling on property hunters not to miss the event.
The attraction at the event will be the 17 private affordable housing scheme projects (also known as MyHome Scheme) which will be showcased by 10 of its participating developers.
“A total of 1,566 units of houses have been approved under the scheme and there is a RM30,000 incentive per unit of these houses which will benefit both the home buyers and the private developers,” he said.
Those eligible to purchase the units are Malaysians, who are 18 years old and above, and are first time house buyers with combined household income of RM5,000 per month.
“The house buyers can apply direct during the PropEX,” he said.
The selling price of the MyHome properties in Sabah is within the range of RM250,000 per unit with a minimum floor area is 800 per square feet.
Goh also mentioned about Shareda’s promise to build 10,000 units of affordable homes in Sabah for the next five years. The selling price of these affordable homes have been set at not more than RM250,000.