Home prices stay unchanged despite CMCO

Datuk Sim Kiang Chiok

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By Adrian Lim

KUCHING, Nov 22: Despite the imposition of the Condition Movement Control Order (CMCO) in Kuching, prices of residential properties are forecast to remain unchanged.

Sarawak Housing and Real Estate Developers’ Association (Sheda) Kuching branch chairman Datuk Sim Kiang Chiok opined that the selling prices of homes remained stable despite the imposition of the movement restriction order.

“The general selling price of residential houses are stable except for those under development which are in the Home Ownership Campaign (HOC), whereby there is a mandatory discount of at least 10 per cent by the developers approved price.

“The HOC announced in June 2020 has helped in reviving the property market but not up to the pre-Covid 19 level.

“Now with the third wave of the pandemic, it is foreseeable that (property) sales will be affected again,” he said in a statement.

Sim, who is also a director of Sim Swee Yong Development and Construction Sdn Bhd, said the initial economic stimulus measures which include bank loan moratorium, wage subsidies and HOC, have rejuvenated the property market.

Thus, he observed that there were no massive discounts offered by existing properties developers for their projects.

Sim foresees that house prices are going to be stable with some discounts offered by certain property developers until the situation in the property market is restored back to pre Covid-19 era.

On another note, he called on the federal government to extend the blanket loan moratorium for another six months to June 2021 rather than providing targeted moratorium as most businesses were affected by the third wave of the Covid-19 pandemic.

“Moving forward, with the third and subsequent waves (of Covid-19), much help from the banks and government are needed to ride through the poor demand and low productivity of the business environment in the current pandemic,” he added.  — DayakDaily