MIRI: Sarawak is expected to enjoy robust growth in its commercial properties sector due to rapid urbanisation that is pushing up commercial real estate values.
“The prices of commercial properties will continue to rise. The market value will rise with rising demand. The situation in the commercial sector looks good,” said Deputy Chief Minister Tan Sri Dr George Chan Hong Nam.
“However, there is a overhang of residential properties, especially in the high-cost categories. The market demand is tapering in this sector,” said Dr Chan, who is also State Industrial Development Minister and State Agriculture Modernisation Minister.
He was asked to comment on proposals from property developers in this state who want to increase the prices of residential houses, even the medium-low-cost types.
Over the past month, developers in the state have started highlighting their “needs” to increase the prices of ready-built houses.
They have cited reasons such as increase in prices of raw materials like steel, fuel, and also shortages of construction cement in the state as grounds for the need to increase house prices.
Dr Chan said that developers would always want to increase the prices of their units given the chance.