Demand for residential properties in Kuching to pick up in short-term

Sim Kiang Chiok

By Adrian Lim

KUCHING, July 7: Demand for residential properties here is poised to gradually recover by the end of the third quarter of this year.

Sarawak Housing and Real Estate Developers Association (Sheda) Kuching branch chairman Sim Kiang Chiok opined that demand for houses in Kuching will gradually pick up when buyers adjust to the new norm of lifestyles.

“We are now under the Recovery Movement Control Order (RMCO) phase and most of us are still very cautious in taking care of our health not to be infected by Covid 19.

“This would affect the market for houses in the immediate term and the demand of houses will be stronger when we all get used to the “new normal” in our lifestyle by the end of the third quarter.

“At present, most property developers in Kuching are resuming their developments and in the process of compliance to the “New Normal” in their office and projects site,” he said in a statement.

For properties sold and under construction, Sim said the federal government will enact a law to help to remove legal disputes due to the Movement Control Order (MCO) from March 18.

He appealed to property buyers to be patient and await the outcome of the new law in the upcoming Parliament sitting in July 2020.

Sim, who is a director of Sim Swee Yong Development and Construction Sdn Bhd said property developers are hoping that there would be extra time being granted to complete the houses which were under construction without any compensation to either parties.

Sim added the federal government has reintroduced the housing ownership campaign (HOC) to encourage more property transactions and spur the property sector

He noted for residential property, the property developer will provide at least 10 per cent discount and the federal government will waive stamp duties for legal and housing loan documents.

Sim added there will be no Real Property Gains Tax (RPGT) for the sale of up to three residential properties and no more capping on the percentage of the loan amount for the purchase of third residential property.

Nonetheless, he noted that most of the financial assistance provided by the federal govt will end in September.

As a result, he opined that the economy will be performing cautiously in the near term as businesses take a “wait and see attitude ” to access the market condition by the end of the year.

Sim added the economy will also be looking at loan defaults and unemployment figures in the short-term.

He gathered that most of the people and businesses have called on the banks to extend the moratorium for loans for another three to six months to help ease their cash flow and tight budget. —DayakDaily