Sabah property sector will continue to grow — Developer
KOTA KINABALU: The property development sector in Sabah will continue to grow despite the current economic uncertainties.
Posh Homes chief executive officer Datuk Francis Liew said that the uncertainty of today’s economic situation is not only faced in this country but also globally.
“However, the real estate sector always receives high demand from the local community.
“We are very fortunate to be able to start the construction of Taman Lume Homes before the outbreak of the Covid-19 pandemic.
“Now this park is fully completed and out of 52 total units developed, 90 percent have been fully sold,” he said when met at the 2024 Chinese New Year Dinner with customers of Taman Lume Homes here on Friday.
Francis said their next project is the construction of high-rise housing in prime areas.
He said the upcoming project will use a new concept that allows all levels of society to afford the properties concerned.
“The construction of housing projects cannot be solely for making a profit. They must be built with the highest level of quality to meet the needs of buyers at a reasonable price.
“In this day and age, buyers are smart enough to differentiate between different housing projects.
“If the quality, units and price do not meet their taste, then they will move to other housing projects,” he said.
He said there is no denying the issue of land scarcity here, which has caused many developers to focus on areas further from the city to build their housing projects.
Francis said the lack of basic infrastructure facilities are among the main challenges for residents and potential buyers.
“In addition, future prices for properties around the city are expected to increase from 20 percent to 25 percent or RM600 to RM800 per square foot.
“Previously, the price of construction materials such as cement has also tripled due to high demand but low production supply.
“Cement is the main crisis in the state’s construction sector, not even including other building materials that have also increased in cost,” he said.
However, despite all the said challenges, Francis said he is confident that the real estate sector in Sabah will grow rapidly in the next two years.
“Housing will always be developed in this state, because many new generations need their own homes,” he said.