Landed housing continues to be most active segment in Kuching
KUCHING: Landed housing continues to be the most active segment in Kuching, albeit a drop in volume and value reported in 2020, CBRE-WTW Research notes, while also highlighting that there is a worsening glut of high-rise residential units.
According to CBRE-WTW Research, there were only half the number of new launches in 2020 compared to 2019, with even fewer of landed residential.
“Seventy per cent of the landed units launched were terraced houses priced RM400,000 and below,” the group said in its Asia Pacific Real Estate Market Outlook 2021.
“Significant launches in 2020 include Petra Vistana Larimar by GSD Southland comprising 198 units of one-storey terraced houses priced from RM336,000 per unit; the Alyvia Residence (102 units of townhouses) at the Northbank by M/s BRACo priced from RM625,000 to RM944,000 per unit; and Treasures Residence by M/s Titanium at Saradise, 40 exclusive residential units priced from RM2.65 million to RM5.92 million each.
“The number of completions in 2020 is expected to exceed 2019 as construction activities resumed in the third quarter of 2020 (3Q20) and a high number of completions in the first half of 2020 (1H20).” CBRE-WTW Research recapped that the market for landed residential units which was halted temporarily from mid-March to May 2020, had gained momentum by 3Q20 and is expected to hold steady with prices generally maintained.
“Rentals and occupancies also remained stable.” As for high-rise residential units, CBRE-WTW Research gathered that these continued to dominate new supply with 3,051 units completed up to 3Q20, noting that most were high-rise in mixed developments The report revealed that about 2,000 more units are expected to be completed by end-2020.
“Prices of high-rise residential units in Kuching has declined to an average of RM450 per square foot due to an abundant supply resulting in a very competitive market.
“Moreover, most new projects are offering smaller units below 1,000 square feet in order to project a lower and more attractive price.”
CBRE-WTW Research also gathered that apartment rentals are very much negotiable in the increasingly soft market and this has reduced the average asking rental for apartment units, thus affecting net yields.
“The supply glut of stratified residential units experienced in the last couple of years have seemingly gotten worse with an increased incoming supply.
“This has resulted with buyers dictating the rentals and terms.
Units are taking much longer to sell or rent especially those in the higher rent market or class.”
CBRE-WTW Research highlighted that significant launches recorded include The GLEN at Arang Road (628 units), Milano Eight at Jalan Wan Alwi (780 units) and PD Residence at Jalan Ong Tiang Swee (110 units).
“In 2020, Kuching built-up area covering Kuching urban area and its surroundings recorded the highest number of launches at 890 units.
“Most of the newly launched units are observed to be smaller, starting from 667 square feet (studio units) and priced from RM243,000 per unit.”
Overall, apartment or condominium developments completed in 2020 were sizeable, and these included Riverine Diamond Condominium (312 units), Metro City Square (376 SOHO units), Royal Richmond Condominium (192 units), Yarra Park (195 units), Laticube Apartments (100 units), PRIMA at Bintawa Waterfront (1,320 units), Princeton Suites (83 units), Toorak at Seladah (65 units) and Ataria Resort at Bandar Semariang Resort City (428 units).